Enterprise resource planning provider TechnologyOne has exceeded expectations with its outstanding financial results for the 2023 fiscal year. The company reported an impressive 16 percent rise in after-tax profit, reaching $102.9 million. Moreover, it achieved its 14th consecutive year of record-breaking profit, surpassing the projected growth range of 10 to 15 percent. TechnologyOne additionally achieved unprecedented revenue figures and witnessed substantial growth in its software-as-a-service (SaaS) fees.
One of the key drivers behind this remarkable performance was a remarkable 23 percent increase in annual recurring revenue (ARR), amounting to $392.9 million. Overall revenue also witnessed a notable surge, rising by 19 percent to reach $441.4 million for the fiscal year.
TechnologyOne attributes its ARR growth to its success within the local government sector. The company successfully secured over 25 major deals during FY23, with a combined total value exceeding $113 million. Notable among these transactions is the City of Parramatta’s digital transformation project. Furthermore, TechnologyOne welcomed five new government customers, collectively signing deals worth over $23 million, including the Department of Veteran’s Affairs.
In addition to expanding its customer base, TechnologyOne successfully transitioned more than 230 existing government customers to its SaaS offering. This migration allowed customers to streamline their operations effectively, contributing to the company’s net revenue retention rate of 119 percent.
TechnologyOne’s CEO, Ed Chung, attributes the company’s remarkable growth to the compelling value proposition of its global SaaS ERP solution. This solution has proven to be highly attractive to both new and existing customers.
With these outstanding results, TechnologyOne confidently sets its sights on the future. The company aims to surpass $500 million ARR by FY25, one year ahead of its medium-term guidance.
1. What contributed to TechnologyOne’s strong financial performance in FY23?
TechnologyOne experienced strong financial performance in FY23, primarily driven by a significant increase in software-as-a-service (SaaS) and recurring business. Success within the local government sector, including major deals and digital transformation projects, played a crucial role in achieving record-breaking revenue and profit.
2. How many major deals did TechnologyOne close during FY23?
During FY23, TechnologyOne closed over 25 major deals, totaling more than $113 million. These deals included a notable digital transformation project for the City of Parramatta, showcasing the company’s successful expansion within the local government sector.
3. How many existing government customers did TechnologyOne transition to SaaS?
TechnologyOne successfully migrated over 230 existing government customers to its software-as-a-service (SaaS) offering. This transition allowed these customers to streamline their operations and contributed significantly to the company’s impressive net revenue retention rate of 119 percent.