Announcing the TechnologyOne (ASX: TNE) financial results for the year ended 30 September 2023, Chung, said “our ability to deliver these results for 20+ years is due to our clear vision, strategy, culture and our ongoing investment in R&D, which has been validated in March as we entered the ASX 100 index.”

“Our ARR growth of 23% and profit growth of 16% is driven by the significant value proposition of our global SaaS ERP solution for new and existing customers. Pleasingly, existing customers are also continuing to expand their use of our global SaaS ERP solution to streamline their operations, as shown by our Net Revenue Retention (NRR) of 119%. I am also pleased to share that we are on track to surpass $500 million ARR by FY25, bringing our medium-term guidance a year forward.

“With strong results and a confidence in our sales pipeline, we made additional investments in all our pillars for growth to enable us to continue to double in size every five years beyond $500 million ARR. In R&D we increased investment by 21% to accelerate the development of our ground-breaking Digital Experience Platform (DxP) and our transformative AppBuilder product, the latter resonated so strongly with our customers that we are speeding up delivery to release faster than our original targets. In the UK, we increased the size of our sales and consulting team as a result of the early success of SaaS+, with the region’s ARR up 52%. All of these additional investments will support future margin targets and fast-track the development outcomes our communities deserve.

“We established our visionary SaaS+ offering, becoming the world’s first SaaS+ ERP company, by combining our mission-critical global SaaS ERP solution and implementation in one single fee, removing the need for traditional, complex, long, risky and expensive consulting implementations to provide faster go-lives and therefore unlocking value for our customers more quickly.

“We returned cashflow generation to NPAT ratio of approximately 100% one year earlier than planned. With significant cash and investment holdings of $223.3 million and no debt, our balance sheet retains flexibility and strength for inorganic growth in the future.”

Chung said adoption of the TechnologyOne global SaaS ERP solution exceeded expectations, “with customer adoption driving Total ARR to $392.9 million, up 23%”.

“TechnologyOne continues to lead in the Local Government sector, where we closed over 25 major deals in FY23 totalling more than $113 million in contract value. Consequently, more than 300 council customers now benefit from our high-quality products in APAC. We continue to win clients from our larger competitors, including the City of Parramatta’s digital transformation project, one of several excellent wins from Infor, and another returning customer from Oracle. These Local Government customers are just a few examples of councils choosing our market-leading ERP, CiA, with the digital customer at its centre.

“In the Government sector, we signed five major deals with a total contract value of more than $23 million. TechnologyOne successfully completed the transition of our existing 230+ Government customers to SaaS. The new customers we signed validated our SaaS-for-Government vision, with the most notable being the Department of Veteran’s Affairs (DVA), which was awarded to TechnologyOne at the conclusion of a competitive tender process against SAP. DVA, a large agency, chose TechnologyOne for the first stage of its digital transformation based on our proven ability to deliver within the Federal Government. Equally, the Commonwealth’s National Anti-Corruption Commission, with less than 200 staff, knows they will get the same enterprise grade, built-for-Government configuration, and industry-leading cyber security standards as our largest Government customers.

“We have successfully completed our transition from an on-premise legacy licence business to a SaaS business. Our plan to reduce on-premise legacy licence fees from a high of circa $75 million to zero over five years is complete. We have aggressively grown our SaaS recurring revenue business to replace that revenue, delivering increasing earnings every year,” Chung commented.