Technology One (TNE) H1 2025 earnings summary

Executive summary

• Achieved record first-half ARR and profit for the 16th consecutive time, with ARR reaching $511.1m (AUD 511.1m), 18 months ahead of plan, and profit before tax at $81.9m, 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 up 50% and UK sales ARR up 61%, with significant wins in local government and higher education.

• Strategic acquisition of CourseLoop/CoreSlip for $60m (AUD 60m), adding $9.1m ARR and expanding the OneEducation solution.

• Interim dividend increased 30% to 6.6 cents per share, with a payout ratio of 35%.

Financial highlights

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

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

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

• Free cash flow was $24.0m; cash and investments at $211.9m.

• EPS rose 31% to 19.26 cents.

Outlook and guidance

• FY2025 profit growth guidance of 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.

• Profit before tax margin expected to expand to 35%+ in the long term.

• R&D investment to be maintained at 20%-25% of revenue.

• Pipeline for 2025 is strong, with continued resilience in core markets and no impact from current geopolitical issues.