TechnologyOne Sets Sights on $1bn Revenue Goal

Brisbane-based tech company TechnologyOne is pushing to redefine enterprise software, aiming to reach $1 billion in annual recurring revenue (ARR) by 2030- but a fast rollout of its innovative SaaS+ ERP platform could reshape its traditional consulting-heavy industry. The company has just posted its 16th straight year of record profits and revenue, signalling strong momentum behind its long-term growth strategy.

TechnologyOne, a leading enterprise software business listed on the ASX, currently serves 6 core vertical markets. It was one of the first global players to launch a fully integrated SaaS+ Enterprise Resource Planning (ERP) solution. This offering eliminates the need for costly and lengthy consulting engagements by combining 19 critical products into one streamlined subscription service.

In its half-year financial results ending March 31, the company revealed pre-tax profits jumped 33% to $81.9 million, while revenue rose 19 percent to $291.3 million. Recurring revenue soared to $511.1 million - up 21 percent from the year before, with especially strong growth in the UK, where ARR surged 50 percent to $43.1 million. Shares rose over 13% in early afternoon trading to $37.38.

What appears to be driving this expansion is TechnologyOne’s SaaS+ platform, which is already fully deployed in the UK and steadily gaining ground in Australia. Built to reduce ERP implementation times from thousands of days to as few as 30, the platform's simplicity, speed and all in 1 model seem to be winning over markets that have historically lagged behind in cloud ERP adoption.

Looking forward, the company is betting big on growth sectors like local government and education. In the past year, ARR in the education segment rose 27 percent, while government contracts helped push 20 percent gains worldwide. Recent contracts now see its student management product used by TAFEs in every Australian state except NSW and SA, and it won a significant deal with the Australian Energy Regulator.

The firm has also expanded its workforce to 1600 employees, up from 1000 just a few years ago, with a significant portion of that growth going into research and development. Despite global ambitions, TechnologyOne maintains it will stay headquartered in Brisbane’s Fortitude Valley, anchoring its growth in its home ecosystem.

Source: The Australian, TechnologyOne, Global Data