TechnologyOne sees 16% rise in revenue for half-year ending 2024

TechnologyOne has released its financial results for the half-year ending in 2024, demonstrating significant growth across most of its key financial metrics. The technology company reported a profit before tax of AUD $61.5 million, marking a 17% increase from the previous period. Profit after tax also rose by 16%, reaching AUD $48.0 million.

The company reported a notable rise in its total annual recurring revenue (ARR), which climbed by 21% to AUD $423.6 million. Net revenue retention (NRR) surpassed expectations, standing at 117%, exceeding the target of 115%. Revenue from the SaaS and recurring business segments also showcased robust growth, up 21% to AUD $223.1 million.

Total revenue for the period amounted to AUD $244.8 million, reflecting a 16% increase, while total expenses correspondingly grew by 16% to AUD $183.2 million. Cash flow generation was negative at AUD ($3.8 million), which was anticipated for the first half, but the company expects a strong recovery over the full year. Cash and investments rose by a notable 24% to AUD $172.0 million.

In addition to the financial performance, the company announced a record interim dividend of 5.08 cents per share (cps), an increase of 10%. Investment in research and development (R&D) continued to be robust, amounting to AUD $56.9 million before capitalisation, up 15%, and representing 24% of total revenue.

The United Kingdom market also contributed to the company's positive results, with UK ARR growing significantly by 36% to AUD $28.8 million.

TechnologyOne's HY24 financial results underscore the company's strong performance in recurring revenue streams and its effective cost management, setting the stage for continued growth in the upcoming periods.