TechnologyOne lifts half-year profit, shares rise
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The news: Shares in TechnologyOne were trading higher after the enterprise software provider lifted its half-year profit and dividends.
The numbers: Net profit for the six months to March rose 16% to $48 million, while total annual recurring revenue (ARR) was up 21% to $423.6 million.
The company will pay a record interim dividend of 5.08 cents a share, up 10% from a year ago.
TechnologyOne shares were up 3.12% to $16.52 in early trading on the ASX.
The context: CEO Ed Chung said existing customers had continue to expand their use of the company’s global SaaS enterprise resource planning (ERP) solution, taking additional products and modules to streamline their operations.
As a result, it is on track to surpass $500 million ARR by FY25. The group expects ARR growth of 15% to 20% for the full year, while profit before tax is likely to rise 12% to 16% from last year.
What they said: Analysts at Wilsons, which holds an ‘overweight’ rating on the stock, backed the company’s optimistic outlook.
“This strong organic growth we expect will be accelerated with its strategic new product development pipeline. With FY25 guidance provided and both our forecasts and consensus largely already there, we see a solid second half ahead with modest upside risk to TNE’s guidance,” they said in a note.
The source: ASX announcement
