Enterprise resource planning provider TechnologyOne has released its 2023 financial year results, recording a 16 per cent increase in after tax profit of $102.9 million.
The company said it delivered its 14th consecutive year of record profit ahead of guidance of 10 to 15 per cent growth, as well as record revenue and software-as-a-service fees.
Total annual recurring revenue (ARR) rose by 23 per cent, to $392.9 million, and total revenue was up 19 per cent to $441.4 million for TechOne.
This was driven by a 22 per cent increase in its SaaS and recurring business, which generated $390.7 million.
TechOne attributed its ARR growth to success in the local government sector, having closed over 25 major deals in FY23 totaling more than $113 million, including a digital transformation project for City of Parramatta.
The company also secured five new government customers in deals collectively worth over $23 million, including the Department of Veteran’s Affairs.
TechOne also transitioned over 230 existing government customers to SaaS.
“Our ARR growth of 23 per cent and profit growth of 16 per cent is driven by the significant value proposition of our global SaaS ERP solution for new and existing customers," TechOne's chief executive Ed Chung said.
"Pleasingly, existing customers are also continuing to expand their use of our global SaaS ERP solution to streamline their operations, as shown by our net revenue retention of 119 per cent."
"I am also pleased to share that we are on track to surpass $500 million ARR by FY25, bringing our medium-term guidance a year forward."
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