Chief executive Edward Chung said on Tuesday morning the company’s cloud business continues to grow very fast with cloud annual contract value (ACV) up 69% to $27 million.
“Our cloud first, mobile first strategy is driving our continuing strong results. Our target is to once again grow this business strongly with Cloud ACV to reach $42 million in the next 12 months, an increase of 55%. The company is on track to reach Cloud ACV of $143 million by 2022.”
The ASX-listed company (ASX:TNE) reported net profit before tax was up by 9% to $58 million on revenue of $273 million – an increase of 10% over the previous year.
According to TechnologyOne, 112 new customers were added to its Cloud business this year, taking the number of enterprise customers on the Cloud to over 270 customers.
And the company says all large contract wins during the year were based on the TechnologyOne Cloud, and reported that total annual subscription revenue hit $139 million, up 17% on the previous year.
TechnologyOne executive chairman Adrian Di Marco said, “The market is clearly distinguishing between older generation ‘hosted enterprise systems’ like those provided by our competitors, and a true Software as a Service (SaaS) enterprise system provided by TechnologyOne, and the significant advantages our mass production, single instance, platform can deliver.
“Providing a single comprehensive enterprise software system, as a service, to thousands of customers simultaneously from a single software instance provides an economy of scale, and long term strategic benefit that has never been achieved before in the enterprise software market.
"Our customers lose nothing by going to our offering and gain everything – they still have their data in their own database, and are still able to configure our offering to meet their exact business requirements. Coupled with two releases automatically provided every year, with new features, functions, technologies and security capabilities it is making life simple for our customers. It is the future of enterprise software today.”
Chung says TechnologyOne remains confident that as it continues to achieve greater scale in its cloud business, “it will become a platform for the generation of significantly more profits in the coming years”.
“The strength and diversity of our underlying business has allowed us to continue to grow strongly. Adjusting our results to exclude ‘one-off’ significant events this year, our underlying profit growth was even stronger, in excess of 22%. Looking to the 2018 year, with these headwinds removed, this sets TechnologyOne up for another strong performance in the 2018 financial year,” he said.