Australia’s largest enterprise software company, TechnologyOne, posted an 8% lift in full year net profit after tax to $44.49 million, continuing an eight-year run of record results.
The record revenue, up 10% to $273.25 million, and record profit were underpinned by fast growth in TechnologyOne’s cloud-based services.
“Our cloud first, mobile first strategy is driving our continuing strong results,” says CEO Edward Chung.
The annual contract value of the cloud business was up 69% to $27 million. Total annual subscription revenue hit $139 million, up 17%.
Chung says the market is clearly distinguishing between older generation hosted enterprise systems and a true Software as a Service (SaaS) enterprise system.
“Providing a single comprehensive enterprise software system, as a service, to thousands of customers simultaneously from a single software instance provides an economy of scale, and long term strategic benefit that has never been achieved before in the enterprise software market,” he says.
The company dominates the local government sector. Last quarter TechnologyOne closed 10 new deals totalling $40 million in contract revenue in Queensland, New South Wales, Victoria, South Australia and Western Australia.
“TechnologyOne sees the sales pipeline for the new financial year as continuing to be strong,” he says.
The company increased the dividend for the second half by 10% to 5.60 cents a share and announced a special dividend of 2 cents. The total dividend for the year, including special dividend, was 10.20 cents per share, an increase of 8% on the prior year.
The 2017 results in detail: