TechnologyOne scrapes $300 million milestone thanks to SaaS platform

TechnologyOne has come close to hitting the $300 million revenue milestone in a bumper year for the ASX-listed SaaS firm.

The Brisbane-headquartered company's revenue for the year ending 30 September 2018 was up nine percent to $299 million. Net profit before tax was up 15 percent to $66.5 million, while the ever-important annual recurring revenue was up 22 percent to $169 million.

Chief executive Edward Chung claimed that TechOne now has the largest ERP SaaS offering in the country, serving thousands of users from 347 large scale enterprise customers.

“We continued to dominate in the local government sector, where we closed 11 new major deals with $80 million in contract revenue. We have more than 300 council customers and are continuing to grow fast," Chung added.

TechOne's SaaS platform was also one of the most profitable areas of business, contributing $7 million in profits this year compared to $2.5 million last year. The platform is a single instance, mass production offering, which added 77 new customers this year.

Founder and executive chairman Adrian Di Marco said that company invested more than $54 million in R&D this year, including investments in its enterprise software suite Ci and early research into new areas like AI and machine learning.

"Our ability to successfully undertake large-scale cutting-edge R&D and to successfully commercialise it has underpinned our success," Di Marco said.

“After many years of R&D investment, TechnologyOne SaaS is driving our strong results. We have today the market leading enterprise SaaS offering for the markets we serve. We continue to invest in new exciting ideas and innovation including artificial intelligence and machine learning, which we will ship in our 2019A release in the first half of 2019."

In response to the strong results, TechOne increased its full year dividend to 11.02 cents per share. The company's shares were trading at $5.65 each at the time of writing.