By Stuart Condie
SYDNEY–Technology One Ltd. raised its interim dividend and flagged a healthy rise in its annual profit after the Australian enterprise software firm lifted its first-half profit by 18%.
The ASX-listed firm reported a net profit for the six months through March of 33.2 million Australian dollars ($23.6 million), compared with A$28.2 million a year earlier. Revenue rose by 19% to A$172.0 million.
Technology One, which is transitioning from a traditional license model to software-as-a-service (SaaS), said annual recurring revenue jumped by 44% on-year to A$225.1 million and was expected to rise by more than 40% over the whole of fiscal 2022.
“As we continue to win more customers and our SaaS Platform continues to scale globally, our profit margin will continue to expand,” Chief Executive Edward Chung said.
Technology One anticipates annual recurring revenue of A$500 million and a continuing pre-tax profit margin of 35% by fiscal 2026, up from 25% in the six months through March.
Directors of the company declared an interim dividend of 4.2 Australian cents per share, up from 3.82 cents a year earlier.
Technology One expects pre-tax net profit for the full financial year to be between 10% and 15% higher than fiscal 2021’s A$97.8 million.
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