Technology One (TNE) H1 2025 earnings summary

Executive summary

• Achieved record first-half profit, revenue, and ARR for the 16th consecutive year, with ARR surpassing $500 million (AUD 511.1 million), 18 months ahead of plan, and profit before tax reaching $81.9 million, up 33% year-over-year.

• SaaS Plus/SaaS+ offering is driving growth, enabling faster, lower-risk ERP implementations, high customer retention (99%+ over 38 years), and strong ARR and recurring revenue growth.

• UK ARR grew 50% year-over-year, with notable wins in local government and higher education; UK sales ARR up 61%.

• Strategic acquisition of CourseLoop/CoreSlip for $60 million, adding $9.1 million ARR and expanding the OneEducation solution in higher education.

• Interim dividend increased 30% to 6.6 cents per share, supported by a strong balance sheet and payout ratio of 35%.

Financial highlights

• Total revenue rose 19% to $291.3 million; SaaS and recurring revenue up 19% to $265.0 million.

• ARR grew 21% year-over-year to $511.1 million, including $9.1 million from the CourseLoop/CoreSlip acquisition.

• Profit before tax was $81.9 million (up 33%), and profit after tax was $63.0 million (up 31%).

• Free cash flow was $24.0 million, up 100% from the prior year; cash and investments totaled $211.9 million, up 23%.

• EPS rose 31% to 19.26 cents per share.

Outlook and guidance

• FY2025 profit growth guidance raised to 13%-17%, underpinned by strong ARR growth and margin improvement from SaaS Plus.

• Long-term target to exceed $1 billion ARR by FY2030, with a total addressable market of $13.5 billion.

• Continued investment in R&D and new growth areas such as AI, DXP, App Builder, and UK expansion.