TechnologyOne soars on record half-year profit and dividend hike
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More news: TechnologyOne shares were up in early trading after the software-as-a-service company announced a 33% year-on-year increase in profit before tax over the half-year to March and a 30% increase in its interim dividend to 6.6 cents per share.
Its shares were up 10.51% to $36.54 at 10:12am AEST and are up 128.12% over the last 12 months.
TechnologyOne lifts FY profit guidance after 33% interim jump
The news: Enterprise software company TechnologyOne has uplifted its profit guidance after delivering record returns in the first half of the financial year 2025 for the 16th consecutive year.
The numbers: TechnologyOne’s profit before tax for the first half of financial year 2025 was up 33% to $81.9 million while its after tax number was up 31% to $63 million.
Total annual recurring revenue (ARR) increased by 21% to $511.1 million, whereas total first half revenue was up 19% to $285.7 million. That led TechnologyOne to upgrade its full-year net profit before tax guidance to between 13% and 17% growth on the previous year.
In financial year 2024 the software company posted an 18% increase in profit before tax, beating that year’s guidance of 12% to 16% growth.
The company also announced a record interim dividend of 6.6 cents per share, which is up 30%.
The context: Australia’s biggest enterprise resource planning (ERP) and software-as-as-service (SaaS) company has delivered record first half annual recurring revenue and profit for the 16th consecutive year, it said in a statement to the exchange.
It credited its continued success to its SaaS+ offering, which involves delivering ERP software to customers and implementing it on their behalf under a single yearly fee.
The company said it is also experiencing “strong momentum” in the United Kingdom, securing several customers in the local government sector including its first council in London.
In November 2024, TechnologyOne also acquired higher education software provider CourseLoop for $60 million.
What they said: “We expect to see our ARR continuing to grow strongly over the full year, and the Company sees significant growth opportunities in the coming years driven by our global SaaS+ ERP solution, increased product adoption by existing customers, new customers, and global expansion,” TechnologyOne CEO and managing director Edward Chung said.
“We are on track to double our business again and surpass total ARR of $1 billion by FY30, from our current base of $511 million. We will continue to invest for the long-term in R&D to build platforms for growth.”
