Technology One Limited has reported a record half-year performance, with revenue up 19% and net profit after tax rising 31%, driven by strong SaaS growth and strategic acquisitions.
- Revenue increased 19% to $285.7 million
- Net profit after tax rose 31% to $63.0 million
- Annual Recurring Revenue (ARR) grew 21% to $511.1 million
- Acquisition of CourseLoop expands Higher Education software suite
- Interim dividend up 30% to 6.6 cents per share
Robust Financial Growth Amid SaaS Expansion
Technology One Limited has delivered a standout half-year result for the period ending 31 March 2025, posting record revenue of $285.7 million, a 19% increase over the previous corresponding period. Net profit after tax surged 31% to $63.0 million, underscoring the company’s strong operational momentum and market demand for its enterprise software solutions.
The company’s Annual Recurring Revenue (ARR), a key metric for SaaS businesses, climbed 21% to $511.1 million, surpassing the $500 million milestone eighteen months ahead of schedule. This growth is largely attributed to the continued success of Technology One’s SaaS+ offering, which bundles multiple mission-critical products into a single, streamlined subscription model that accelerates implementation and value delivery for customers.
Strategic Acquisition Strengthens Higher Education Focus
In November 2024, Technology One acquired CourseLoop, a cloud-based Curriculum Management software provider with $9.1 million ARR, for a total consideration of $60 million. This acquisition enhances Technology One’s OneEducation solution, making it the world’s first SaaS platform to cover the entire student lifecycle from course design to graduation. The integration of CourseLoop’s capabilities is progressing well and is expected to deepen the company’s competitive position in the Higher Education sector, particularly in Australia and the UK.
The acquisition aligns with Technology One’s broader strategy to expand its vertical market offerings and deliver comprehensive, industry-specific ERP solutions. CourseLoop’s data-driven curriculum management tools provide universities with actionable insights to design financially sustainable and market-relevant courses, a critical differentiator in the education technology space.
Strong Market Traction and Customer Wins
Technology One’s growth was further fueled by significant customer wins, especially in the local government and education sectors. Notably, the company secured its first London Borough Council contract with Islington, marking a strategic breakthrough in the UK market. ARR in the UK soared 50%, with sales ARR up 61%, reflecting strong adoption of the SaaS+ model.
In Australia, the Education sector ARR grew 27%, with wins such as TasTAFE reinforcing Technology One’s dominance in the TAFE market. The Government sector ARR rose 28%, including a landmark contract with the Australian Energy Regulator, the first federal agency to adopt Technology One’s OneGovernment SaaS+ solution. These wins highlight the company’s deep industry expertise and innovative delivery approach.
Financial Discipline and Shareholder Returns
Technology One also demonstrated strong cash flow discipline, doubling free cash flow to $24.0 million in the half-year, supported by disciplined collections and strategic creditor payments. Cash and investments increased 23% to $211.9 million, providing a solid liquidity buffer.
The Board declared a record interim dividend of 6.6 cents per share, a 30% increase from the prior year, reflecting confidence in ongoing profitability and cash generation. The dividend is 65% franked and payable on 13 June 2025.
Additionally, the company maintained an impressive net revenue retention rate of 118%, exceeding its long-term target and signaling strong customer satisfaction and upsell potential. Technology One’s Rule of 40 metric, combining ARR growth and free cash flow margin, stood at 49%, placing it in the top quartile globally among SaaS peers.
Looking Ahead
Technology One’s focus on accelerating ERP implementation through its SaaS+ model, combined with strategic acquisitions and sector-specific innovation, positions it well for sustained growth. The company’s ability to deliver faster time to value and deepen customer relationships will be critical as competition intensifies in the enterprise software market.
Bottom Line?
Technology One’s record half-year sets a high bar, but integration of CourseLoop and sustaining SaaS momentum will be key to future success.
Questions in the middle?
- How will the integration of CourseLoop impact Technology One’s earnings and product roadmap over the next year?
- Can Technology One maintain its low churn rate and high net revenue retention amid increasing competition?
- What are the risks and opportunities in scaling the SaaS+ ERP model internationally, especially in the UK market?