Technology One (TNE) Investor Day 2024 summary

Strategic vision and growth platforms

• Strategy aims to double in size every five years, targeting AUD 500 million ARR by H1 FY25 and AUD 1 billion+ ARR by FY30, underpinned by core beliefs and a Blue Ocean approach focused on deep, mission-critical ERP solutions for select verticals.

• Seven growth platforms include expanding product adoption, R&D-driven modules, SaaS Plus, acquisitions, new customer logos, and significant UK and APAC market opportunities, with APAC whitespace expected to double to AUD 4 billion through R&D.

• Growth is pursued via new logos, strategic acquisitions, and deepening penetration in core verticals, with a conservative M&A approach focused on IP and cultural fit.

• Focus remains on APAC and UK, leveraging deep local expertise and product localization, with no immediate plans for new regions.

• Maintains a strong net revenue retention rate of 115-120%, with net revenue retention as the primary growth engine and 99%+ customer retention.

SaaS Plus transformation and financial model

• SaaS Plus (SaaS+) bundles SaaS and implementation into a single recurring fee, shifting from one-off consulting revenue to high-quality ARR and offering end-to-end solutions with rapid deployment and a single point of accountability.

• SaaS+ lifts ARR by 40% and enables ERP implementation in as little as 30 days, reducing customer effort by 56% compared to traditional models.

• The transition is managed to maintain 12–16% PBT growth, with flexibility to adjust investment pace based on SaaS Plus adoption rates.

• Long-term profit and revenue tailwinds are projected, with a medium-term PBT margin target of 35%+ through economies of scale.

• TechnologyOne is the only vendor in its markets to develop, sell, implement, support, and run its fully integrated suite without third-party partners.

Product innovation and market positioning

• Invests over 20% of revenue in R&D, resulting in 16 products and 500+ modules, with continuous feedback loops from consulting and support to product teams.

• Demonstrates deep integration and automation in ERP, with AI-driven features, unique spatial capabilities, and two major software releases per year.

• Holds leading market share in local government and higher education, with 73% of ANZ residents and over 6.5 million students globally using its software.

• TAM for core verticals is AUD 13.5 billion, with strong diversification across finance, health, asset-intensive, government, and education sectors.

• Maintains the highest security accreditations in the industry and provides 24/7 global support.