TechnologyOne upgrades profit growth guidance
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The news: Software provider TechnologyOne has upgraded its full-year guidance, with chief executive Ed Chung hailing new products “turbocharged through AI”.
The numbers: The SaaS company is now guiding for 18-20% growth in profit before tax for FY26, up from its previous range of 13-17%. It has also guided for annual recurring revenue growth of 16-18%. It is targeting the top end for both guidance ranges.
The context: Chung said the increased guidance is driven by “customer in our customer pipeline” in Australia, New Zealand and the UK.
TechnologyOne, which hosts its annual general meeting today, also announced the retirement of non-executive director Clifford Rosenberg, who served on the board for seven years.
What they said: “We talk about heartbeats and rhythms in our business all the time,” said Chung.
“For as long as I can remember, our heartbeat and rhythm was 10% to 15% PBT growth ... As we have transitioned to a SaaS company and now a SaaS+ company, we have been able to carefully and surgically increase that heartbeat and rhythm, lifting our PBT guidance range from 10% to 15% to 12% to 16% in FY24, then 13% to 17% in FY25 and now 18-20% in FY26.”
The source: ASX
