Technology One shares jump on better profits

Swiss Giulia Tanno during the Freestyle Ski Big Air FIS World Cup 2016 in El Colorado, Chile. Martin Bernetti/AFP/Getty Images

Shares in Technology One jumped after the enterprise software company posted a better than expected 16% rise in full year profit to $41.34 million.

At the close, they were up more than 11% to $5.890.

The result was ahead of guidance for profit growth of between 10% and 15%.

Revenue was up 14% to $249.02 million, the company’s seventeenth consecutive year of record revenues, driven by the company’s cloud storage and mobile first strategy.

“We’ve experienced huge growth in SaaS (software as a service), with our largest wins in 2016 all coming from SaaS,” says founder and executive chairman Adrian Di Marco.

“This growth is across all industries, from federal government to local government, education and financial services, which speaks volumes about the market shift towards a cloud first, mobile first world.”

Research and Development was $46 million for the full year, or 19% of revenue.

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