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Profit nudges $100m as TechOne on track to double in size over next five years

Business

Technology One was on track to double the size of its business within five years after posting a 19 per cent jump in pre-tax, full-year profit to $97.8 million.

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The result was at the top end of the company’s guidance and based on the strength of its software-as-a-service business where its annual recurring revenue was 43 per cent to $192 million.

“With our fast-growing SaaS business and the announcement of the end of our on-premises business, we are on track to hit our target of $500 million-plus in annual recurring revenue by 2026,” TechOne said.

“Given the current ARR is is $257.5 million this is an additional $242 million of ARR in the next five years.”

Total revenue was up 4 per cent to $312 million and total dividend was up 8 per cent to 13.91 cents a share.

The result marked 12 consecutive years of record profit for the company which is led by executive chairman and founder Adrian Di Marco.

It said it had about 100 enterprise customers during the year and it now boasted 637 large-scale customers. The software-as-a-service business was now growing at 43 per cent and 90 per cent of its overall revenue was recurring. It’s target was to lift that to 95 per cent by 2027.

In its outlook for 2022, TechOne said its pipeline was strong and its profit margins would grow to 35 per cent through economies of scale.

“The markets we serve are resilient. SaaS is creating significant opportunities for us.

“We expect to see strong continuing growth in SaaS annual recurring revenue and profit.”

The result did little for the company’s share price which dropped 4 per cent this morning.

 

 

 

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