TechnologyOne announces 17 years of record revenues, with unprecedented growth of SaaS business alongside UK success
Australian software company TechnologyOne (ASX:TNE) today announced its results for the full year ending 30 September 2016, recording its seventeenth consecutive year of record revenues totalling $250 million (£150 million). The company’s cloud first, mobile first strategy is driving its strong continuing results.
The results exceeded market guidance for profit growth between 10 and 15 per cent, with Net Profit After Tax up 16 per cent on the prior full year period.
The company’s continuing success was underpinned by the incredible growth of its Software as a Service (SaaS) business, which grew by more than 100 per cent for the second consecutive year.
“We’ve experienced huge growth in SaaS which speaks volumes about the market shift towards a cloud first, mobile first world,” said Executive Chairman Adrian Di Marco.
“Organisations are rapidly gaining a more sophisticated understanding of the difference between SaaS and cloud hosting, opting for the economies of scale and long-term strategic benefits only offered by SaaS providers.”
Research and Development (R&D) continued to be a significant investment for TechnologyOne at 19 per cent of revenue, which is fully expensed in the year it is incurred.
“It’s been a transformational year for TechnologyOne and our success validates our strategy, vision and ongoing investment in R&D, as we continue to focus on building beautiful software that is incredibly simple and easy to use,” said Mr Di Marco.
TechnologyOne’s UK Operation closed out a breakthrough year, recording its third consecutive year of 100+ per cent growth in licence fees.
“This year we saw a major momentum shift in the United Kingdom and Ireland, underpinned by our continued strong growth in the higher and further education, local government and social housing markets,” said UK Operating Officer Roger Phare.
Significant wins were recorded with University of Exeter, University of Dundee, Ealing Hammersmith and West London College, Leicester City Council and the combined Cambridge Councils.
“All our new customers were Software as a Service (SaaS) deals, indicating the market’s interest in moving to a cloud first, mobile first world. We expect this pattern to continue moving forward, ” Mr Phare said.
“The strength of our enterprise SaaS solution in the UK also received industry recognition, with the win of the 2016 UK Cloud award for ERP Product of the Year and a 2016 SaaS award for Best SaaS Product for Non-Profits or Education.”
TechnologyOne (ASX:TNE) is Australia's largest enterprise software company and one of Australia's top 200 ASX-listed companies, with offices across six countries. We create solutions that transform business and make life simple for our customers. We do this by providing powerful, deeply integrated enterprise software that is incredibly easy to use. Over 1,000 leading corporations, government departments and statutory authorities are powered by our software.
We participate in only eight key markets: government, local government, financial services, education, health and community services, asset intensive industries, project intensive industries and corporates. For these markets we develop, market, sell, implement, support and run our preconfigured solutions, which reduce time, cost and risk for our customers.
For 29 years, we have been providing our customers enterprise software that evolves and adapts to new and emerging technologies, allowing them to focus on their business and not technology. Today, our software is available on the TechnologyOne Cloud and across smart mobile devices.XX December, 2016 – Australian software company TechnologyOne (ASX:TNE) today announced its results for the full year ending 30 September 2016, recording its seventeenth consecutive year of record revenues totalling $250 million (£150 million). The company’s cloud first, mobile first strategy is driving its strong continuing results.