Australia’s largest ERP Software as a Service (SaaS) company TechnologyOne (ASX:TNE) reports its 13th consecutive year of record profit, record revenues and record SaaS fees.
TechnologyOne has seen a record increase in its SaaS annual recurring revenue (ARR) by up to $274.2 million (43%), as well as its profit after tax by up to $88.8 million (22%).
In addition, the adoption of the company’s global SaaS ERP solution has exceeded its expectations, with over 800 large scale enterprise organisations with millions of users now using the software to complete mission critical activities for them and their customers.
Speaking on the financial results, TechnologyOne’s CEO, Ed Chung says: “Our ability to deliver these results is due to TechnologyOne’s clear vision, strategy, culture and our ‘significant’ investment in R&D.
“TechnologyOne is on track to surpass our target of $500 million+ annual recurring revenue by FY26″
Our strategy is clear – we strive to deliver a compelling customer proposition, providing our customers with any device, any time access from anywhere around the globe, as well as a simple and cost-effective way to run their enterprise.
We also exceeded our ambitious annual recurring revenue targets and ended legacy licences. I’m proud to announce that we have successfully completed our strategy ahead of schedule.
I’m thrilled to see that adoption of the TechnologyOne global SaaS ERP solution (CiA) is exceeding our expectations, with customers driving SaaS annual recurring revenue of $274.2 million, up 43%. This is record growth for the company, as is our total ARR of $320.7 million which is up 25%. Our profit after tax was also up 22%.
TechnologyOne is on track to surpass our target of $500 million+ annual recurring revenue by FY26.”
The company notes that due to the quality of the revenue from its latest generation global SaaS ERP business, it is on track to achieve its target of $500+ million ARR by FY26.
It is also reported that its ARR stands at 90% of the total revenue, resulting in the majority of its revenue being locked-in at the start of the financial year, demonstrating strong continuation of growth in the new year.
TechnologyOne also confirms it has closed 20 major deals in FY22 with $69.3 million in total contract value and now has more than 320 council customers in APAC, demonstrating their leadership in the Local Government sector.
TechnologyOne represents Australia’s largest enterprise software company, as well as one of its top 150 ASX-listed companies, with locations globally. The company has been providing its customers with enterprise software that evolves and adapts to new and emerging technologies for more than 35 years.