– TechnologyOne has achieved a 16% increase in after-tax profit, reaching $102.9 million for the 2023 financial year, marking its 14th consecutive year of record profit.
– The company also saw a significant rise in total annual recurring revenue (ARR), which increased by 23% to $392.9 million, and total revenue that was up by 19% to $441.4 million.
– The growth was primarily driven by a 22% increase in its Software-as-a-Service (SaaS) and recurring business, generating $390.7 million in revenue.
– The company’s success in the local government sector played a crucial role in its ARR growth, closing over 25 major deals in FY23 totaling more than $113 million, including a digital transformation project for the City of Parramatta.
– In addition to this, TechnologyOne secured five new government customers in deals collectively worth over $23 million, including the Department of Veteran’s Affairs, and transitioned over 230 existing government customers to SaaS.
In a statement, TechnologyOne’s chief executive Ed Chung highlighted the significant value proposition of the company’s global SaaS ERP solution for new and existing customers, attributing the 23% ARR growth and 16% profit growth to this. Chung also expressed confidence in surpassing $500 million ARR by FY25, a year ahead of the medium-term guidance.
This remarkable financial performance underscores TechnologyOne’s position as a leader in the enterprise resource planning space, with its focus on SaaS solutions and successful expansion into the government sector driving its record-breaking results.