A change is as good as a holiday – or at least a financial boost – when you’re technology enterprise resource planning software company TechnologyOne.
TechnologyOne’s decision to change its operation to being a software servicing subscription model has seen its annual recurring revenue jump 44 per cent to $102 million in 2019.
Its list of assorted companies, enterprises and clients is now 435 – up 25 per cent in a year – including insurance companies, government departments and universities as well as superannuation and fintech companies.
The company’s ambitious targets include doubling the size of the business every four to five years.
Company CEO Edward Chung says TechnologyOne is working towards having 1000 enterprise customers on its books by 2022. Enterprise customers are defined as having tens of thousands of users.
The company’s history suggests they are on track.
Mr Chung said the latest result marks the company’s 10th consecutive year of profit growth.
“Our total annual recurring revenue has now hit $202 million and is set to exceed $500 million in FY24,” Mr Chung said in a public statement.
“This year we continued to acquire new, large enterprise customers from our competitors. Eighteen organisations replaced our competitors’ systems, including systems from Oracle, SAP, Microsoft and Infor.
The firm’s largest shareholder remains its first investor, the Mactaggart family, who provided founder Adrian Di Marco with the start-up capital needed to get the company off the ground.
“TechnologyOne continued to dominate in the Local Government sector, where we closed 24 major deals with $65 million in total contract value. In Education, we closed 13 major deals with $50 million in total contract value, cementing our position as the dominant provider to the APAC education sector,” Mr Chung said. The company increased its full year dividend by 8 per cent to 11.93¢.