TechnologyOne: TechOne's growth streak continues due to products, UK success

TechnologyOne has kept its growth streak going for a consecutive fifteenth year, reporting record rises in profit and revenues for its financial year ending 30 September.The enterprise resource planning (ERP) software-as-a-service (SaaS) vendor's profit before tax for the period was up 18 per cent, reaching $152.9 million, beating out its guidance it set in May of 12 per cent to 16 per cent.Additionally, profit after tax increased by 15 per cent, landing at $118 million.Total revenue meanwhile reached $515.4 million, up 17 per cent, and annual recurring revenue (ARR) reached $470.2 million, up 20 per cent, with the vendor claiming the latter increase was due to the "significant value proposition of our global SaaS ERP solution", its SaaS+ product and its operations in the UK.In fact, UK sales ARR increased by 70 per cent, to $8.2 million, and total UK ARR up 31 per cent, to $34.7 million, with the company claiming that its "long-term investment in the UK continues to build momentum". Profit however was down for its UK business, falling from $3.7 million the year prior to $2.9 million, but the company added that the drop was expected."We see significant opportunities in the coming years in this market, which considerably exceeds the size of the APAC market," TechnologyOne claimed."We continue to see momentum build in the UK, especially in the higher education sector, with the University of Buckingham and the University of Chester both investing in our solutions in FY24."For context, the vendor said a year ago that the company its fourteenth consecutive year of record revenue and profit growth, rising by 17 per cent and 16 per cent, respectively.TechnologyOne CEO Ed Chung said the vendor's success in its last financial year was due to its vision, strategy, culture and its "significant investment in R&D", with the latter up 14 per cent for the year, to $128 million.The vendor added that its investments in R&D and its SaaS+ product are paving the way to allow the company to double in size every five years."Our ARR growth of 20 per cent and profit growth of 18 per cent is not only driven by the significant value proposition of our global SaaS ERP solution for new and existing customers, it is driven by our game-changing SaaS+ offering and the acceleration of our UK business," he claimed.TechnologyOne also said all its key verticals performed strongly throughout the year, with government growing 41 per cent, up $22 million, and local government increasing by 22 per cent, up $32 million.Looking to the future, the vendor doubled down on its commitment to reach $1 billion ARR by its 2030 financial year - a goal it had outlined previously at its first investor day in July.In the shorter term, TechnologyOne is predicted to surpass $500 million ARR by the first half of FY25, ahead of previous forecasts; the vendor first expected to pass the $500 million mark for ARR by FY26, then bumped that forward to the end of FY25.After the reporting period for its FY24, the vendor acquired CourseLoop in early November.