TechnologyOne’s FY25 results showed a 19 per cent increase in profit before tax, reaching $181.5 million. This figure surpassed the company’s guidance of 13 to 17 per cent and aligned with both Morgans’ and consensus forecasts, according to Morgans analyst James Filius. TechnologyOne is an Australian enterprise software company that provides solutions for various sectors including government, health, and financial services. The company specialises in integrated enterprise resource planning (ERP) software.
Annual recurring revenue (ARR) saw an 18 per cent rise to $554.6 million, landing at the midpoint of the company’s projected range. Overall revenue also climbed 18 per cent, while net profit experienced a 17 per cent increase. Customer retention remained strong, with net revenue retention at 115 per cent. However, customer churn edged slightly higher to 1.2 per cent, just above the company’s target of 1 per cent.
Notably, the UK segment demonstrated substantial growth, with ARR increasing by 49 per cent to $51.8 million and contributing $2.9 million in profit. TechnologyOne closed the financial year with a solid net cash and investments position of $309.7 million. Despite the positive results, Filius has maintained a “hold” recommendation on TechnologyOne shares, setting a target price of $43.50.
