TechnologyOne bucks COVID-19 trend with strong demand for ERP platform

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TechnologyOne bucks COVID-19 trend with strong demand for ERP platform
Ed Chung (TechnologyOne)

Australian enterprise software-as-a-service company TechnologyOne has remained profitable on the back of strong global demand for its ERP solution.

In the half-year ended 31 March 2020, the company reported a 6 percent bump in profit after tax at $19.1 million, up from $17.9 million the same period last year.

Revenue meanwhile grew 7 percent to $138 million, up from $128.5 million, while annual recurring revenue (ARR) is up 33 percent to $110 million.

TechOne CEO Edward Chung said the company has delivered its 11th year of record profit, revenue and SaaS fees.

“Our SaaS ARR is up 33 percent and we increased the number of large-scale enterprise SaaS customers by 22 percent to 475. Our SaaS business is growing very fast, even in the midst of COVID-19,” Ching said.

“Our SaaS customers have hundreds of thousands of users, making ours the largest multi-tenanted ERP SaaS offering in Australia.”

The company also revealed its UK business had improved slightly with a loss of $800,000, compared to last year’s $900,000 loss. “We see significant growth opportunities in the coming years,” Chung said of the UK business.

Chung said COVID-19 “had minimal impact” on TechOne, thanks to its ”swift” and “seamless” transition into remote working arrangements where staff continued supporting its customers.

TechOne chairman Adrian Di Marco said, “Our results are due to the continuing strong demand for our global SaaS ERP solution.”

“Customers are now differentiating between inferior ‘cloud-hosted’ solutions, offered by our competitors, and the significant benefits and efficiencies offered by our true multi-tenanted Global SaaS offering.”

Looking ahead, TechOne said it sees its SaaS ARR increase to more than 30 percent over the full year. “Having said this, COVID-19 is an evolving situation, and we have reflected this in our full-year guidance of net profit before tax up 8-12 per cent,” Chung added.

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