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Highlights

  • Shares up 12%: TechnologyOne soared to AU$37.08 in morning trade following its record first-half FY25 results.

  • Record ARR and Profits: ARR grew 21% to AU$511.1 million—18 months ahead of target—while profit after tax surged 31% to AU$63 million.

  • Guidance Upgrade: Management raised full-year net profit before tax growth forecast to 13%–17%, citing strong visibility and pipeline confidence.

TechnologyOne Ltd (ASX:TNE) shares surged 12% to AU$37.08 in early Tuesday trade after the company delivered another stellar earnings update, beating expectations and upgrading its full-year guidance.

The enterprise software company posted its half-year FY25 results, highlighting robust revenue and profit growth, fueled by the performance across its core markets and ongoing demand for its cloud-based services.

Half-Year FY25 Highlights

For the six months ending 31 March 2025, TechnologyOne reported:

  • Revenue of AU$291.3 million, up 19% year-on-year.

  • Annualised Recurring Revenue (ARR) of AU$511.1 million, an increase of 21%, reaching its ambitious AU$500 million ARR target 18 months ahead of schedule.

  • Profit before tax surged by 33% to AU$81.9 million.

  • Profit after tax climbed 31% to AU$63 million.

  • Total expenses increased at a slower pace of 14% to AU$209.4 million, enhancing operational leverage.

Each of the company’s verticals delivered ARR growth, but the standout performers were its Local Government, Education, and Government sectors. Notably, in the APAC region, no single vertical has surpassed 15% of its total addressable market, which management believes indicates ample room for future expansion.

TechnologyOne’s UK business was a standout, with ARR rising 50% to AU$43.1 million, underscoring its growing international footprint and the increasing global appeal of its enterprise SaaS offerings.

Dividend and Outlook

Reflecting the financial performance, the board declared a record interim dividend of 6.6 cents per share, rewarding shareholders and reinforcing confidence in the company's growth trajectory.

CEO Edward Chung expressed optimism about the road ahead, saying:

“We have clear visibility and confidence in our pipeline, which enables us to continue to invest in talented staff and new areas of growth such as SaaS+, Artificial Intelligence, DXP, App Builder and our UK business. The Company is well positioned to deliver strong growth over the full year.”

On the back of these strong results, TechnologyOne upgraded its FY25 guidance, forecasting net profit before tax growth of 13% to 17%, up from earlier estimates.