Shares of Technology One Limited (ASX: TNE) soared on Tuesday, 20 May 2025, rising 10.84% to close at $36.60, following the release of a robust Half-Year FY2025 financial report. The surge, which represented a gain of $3.58 per share, came after the enterprise software company delivered record-breaking revenue and profit, exceeding market expectations and reinforcing investor confidence.
The rally marked one of the day’s top performances on the ASX 200, helping lift the broader Information Technology sector by nearly 2% by midday. Technology One has now recorded a one-week gain of 15.75%, a 30.2% jump over the past month, and is up an impressive 128.46% year-on-year—far outperforming both its sector peers and the broader ASX 200 index.
Performance of Technology One share over a year [Market Index]
🚀 Financial Highlights That Drove the Rally
Investors responded strongly to Technology One’s H1 FY25 results, which showed significant growth across all key performance indicators:
- Profit Before Tax (PBT) rose 33% to $81.9 million
- Annual Recurring Revenue (ARR) increased 21% to $511.1 million
- SaaS and recurring revenue reached $265 million, up 19%
- EBITDA climbed 29% to $117.4 million
- Earnings Per Share (EPS) grew 31% to 26 cents
- Free cash flow rebounded from negative territory to $24 million
- Interim dividend was raised 30% to 60 cents per share, franked to 65%
Perhaps most notably, the company exceeded its $500 million ARR target 18 months ahead of schedule, a milestone that further supports its long-term outlook and validates the strength of its SaaS+ platform. These results underscore Technology One’s successful transition to a fully SaaS-based model, with more than 90% of revenue now recurring in nature.
🧠 The SaaS+ Advantage: A Game-Changer
At the heart of Technology One’s growth story is its SaaS+ (Solution as a Service) strategy. Designed to offer mission-critical enterprise software on a streamlined, scalable platform, SaaS+ has proven to be a key competitive differentiator. Management reports that SaaS+ has lifted ARR by 40%, thanks to strong customer demand across verticals such as local government, education, healthcare, and financial services.
CEO Edward Chung highlighted SaaS+ as a “game changer” during the earnings presentation, noting it provides customers with cost savings of up to 40% while simplifying operations and accelerating implementation timelines. For example, the company now offers “ERP in 30 Days,” a dramatic reduction from the industry standard of several months.
ERP in 30 days [Technology One]
🌍 Global Expansion: UK Gains Momentum
While Technology One’s core base remains in Australia and New Zealand, its United Kingdom operations are gaining impressive traction. The UK division saw:
- 50% year-on-year ARR growth, reaching $43.1 million
- 61% growth in new sales ARR
- Successful implementation of SaaS+ solutions in key UK government jurisdictions, including the borough of Islington
These numbers confirm the company’s ability to adapt and compete in international markets and support its strategy to double in size every five years.
Steady Growth in Total ARR and Average Revenue Per Customer Over Time [Technology One]
🧩 Strategic Acquisition: CourseLoop Integration
The November 2024 acquisition of CourseLoop, a curriculum management software provider, was another contributor to the strong half-year performance. CourseLoop’s functionality has been integrated into Technology One’s OneEducation platform, making it the only global SaaS platform that supports the entire student lifecycle, from course design to graduation.
The acquisition is strategically aligned, enhancing the company’s capabilities in the higher education vertical and strengthening its long-term product roadmap. Management confirmed that integration is progressing well and that all milestones have been met to date.
Details of the Acquisition of CourseLoop [Technology One]
📊 Operational Metrics and Balance Sheet Strength
Technology One delivered a strong set of operational metrics in addition to its financial results:
- Net Revenue Retention (NRR) held steady at 118%, reflecting low churn and strong customer expansion
- Rule of 40, a key SaaS benchmark (ARR growth + free cash flow margin), reached 49%
- R&D investment climbed to $68.8 million, or 24% of revenue, supporting innovation across AI, app building, and digital experience platforms
- The company maintains a clean balance sheet with no debt and $211.9 million in cash and investments, providing flexibility for future acquisitions or product expansion
📈 Market and Investor Reaction
The strong results and positive outlook triggered a wave of buying activity:
- 964,887 shares traded by 2:07 pm AEST, above the four-week average of 876,845
- Daily turnover exceeded $35.4 million
- The stock hit an intraday high of $37.58, indicating high investor demand
With a market capitalisation approaching $12 billion, Technology One now ranks 49th on the ASX and is among the top 5 companies in the Technology sector.
🔮 Outlook: A Billion-Dollar Vision
Looking ahead, Technology One reaffirmed its long-term goal of reaching $1 billion in ARR by FY30, underpinned by strong organic growth, ongoing UK expansion, and strategic acquisitions. Profit margins are forecast to continue expanding toward 35%+ as economies of scale are realised.
For FY25, the company is targeting profit before tax growth of 13–17%, consistent with its track record of meeting or exceeding guidance. The company expects to continue investing heavily in R&D and international expansion, while delivering value through regular dividend growth.
✅ Conclusion
Technology One’s double-digit share price surge reflects more than just a strong half-year—it signals deep market confidence in the company’s business model, leadership, and vision for growth. With record ARR, accelerating SaaS adoption, and a clear international strategy, TNE stands as a benchmark for enterprise software success in the Australian market and beyond.
