- Enterprise software specialist TechnologyOne (TNE) has reported a healthy boost to half-yearly profits despite the COVID-19 crisis
- The company increased net profit by six per cent, revenue by seven per cent, and annual recurring revenue by 33 per cent
- According to CEO Edward Chung, the company's software-as-a-service products are helping businesses seamlessly transition to at-home and online work
- The company said it expects continued strong business growth for the rest of the year
- Importantly, TechnologyOne has boosted its interim dividend by 10 per cent, committing to pay shareholders 3.47 cents per share this half-year
- However, shares in the company are just over one per cent lower today, currently worth $9.68 each
Enterprise tech specialist TechnologyOne (TNE) is the latest company to announce a healthy half-year of profit despite the coronavirus crisis.
The company told shareholders today net profit after tax increased by six per cent over the six months to March 31 compared to the same time the year before.
The profit bump was supported by a seven per cent increase in revenue, which stood at $138.4 million, and a hefty 33 per cent increase to annual recurring revenue (ARR) which came in at $110.2 million.
TechnologyOne provides software-as-a-service (SaaS) enterprise software. Customers can subscribe for services like asset management, payroll management, business intelligence, financial services, and more through a cloud-based platform, meaning they can access the tech anywhere and on any device.
TNE CEO Edward Chung said today's results mean the company has delivered its 11th year of record profit, revenue, and SaaS fees.
"Our SaaS Annual Recurring Revenue (ARR) is up 33 per cent and we increased the number of large scale enterprise SaaS customers by 22 per cent, to 475," Edward said.
"Our SaaS business is growing very fast, even in the midst of COVID-19," he said.
Importantly, Edward said the coronavirus hit in the last month of the half-year, but had a "minimal impact" on the business. In fact, he said the company's technology has not only been able to keep TechnologyOne afloat but also helped customers make the shift to at-home and online work.
TechnologyOne Chairman Adrian Di Marco chimed in on this note, saying the company's technology has helped customers transition to this new environment seamlessly.
"While COVID-19 has caused significant pain for many organisations, our customers have been able to seamlessly move from working in their office to working from home, the park, or anywhere they want, with no loss of functionally, speed, or agility," Adrian explained.
Looking ahead, TechnologyOne said the markets it serves are generally resilient.
As such, the company is expecting a continued strong uptake of its services as businesses find ways to operate at full functionality in an online world.
Edward said with a strong pipeline, a high proportion of locked-in recurring revenues, no debt, and a strong balance sheet, the company is well-positioned to keep delivering strong growth over the full year.
"Having said this, COVID-19 is an evolving situation, and we have reflected this in our full-year guidance of net profit before tax up eight-to-twelve per cent," he concluded.
Importantly, TechnologyOne has boosted its interim dividend by 10 per cent, committing to pay shareholders 3.47 cents per share this half-year.
This is particularly welcome news in an era where companies or scrapping or deferring dividends left, right, and centre.
Nevertheless, TNE shares are trading a slight 1.38 per cent lower today after touching green this morning. Currently, shares are worth $9.68 each.