TechnologyOne highlights continued growth expectations at AGM
Listed software developer, Technology One Limited (ASX: TNE), has outlined its plans for continued growth at its Annual General Meeting in Brisbane today. Revenue for the company has grown 23% year on year since 1997, with Net Profit achieving 27% per annum compound growth.
“We are now one of the dominant providers of enterprise solutions in Australia and New Zealand, with a strong and established position in the General Commercial, Financial Services, Local Government, State and Federal Government and Higher Education markets,” said Mr Di Marco.
“The acquisition of Avand broadens our suite of enterprise software solutions and strengthens our position as a dominant provider to the local government sector.”
“The Avand business will become part of our House of Products business model, which ensures each of our solutions are ‘best in class’ by providing dedicated product business units which focus on the ongoing development, support, implementation and delivery of each product.” TechnologyOne supplies software to almost 50 per cent of Australian Universities, over 100 local government authorities as well as many of Australia’s largest commercial organisations and government departments.
Mr Di Marco said the company has a substantial advantage over its competitors which have failed to deliver a new generation product to compete with TechnologyOne’s new Connected Intelligence (Ci) product. Ci is TechnologyOne’s latest technology platform which combines the best of client server and internet technology to deliver a rich and intuitive graphical experience for end users.
“The functionality and usability of our fully integrated, ‘out of the box’, enterprise suite of software solutions is winning us business over the traditional global ERP providers.”
“Customers are looking for enterprise software that ‘works out of the box’ and does not require costly code customisation. They are also looking for software that is easy to use and minimises training requirements. Our new Ci series of products has delivered on this,” said Mr Di Marco.
“Our competitors’ product offerings are now quite old, and they are still promising to deliver new generation offerings sometime in the future. This is causing confusion and a significant level of dissatisfaction among their customers, who do not have a clear path forward.”
The company’s growth will be primarily driven by the TechnologyOne Financials, Property & Rating, Business Intelligence and Works & Assets products. The Student Management business is expected to continue to be strong once again this financial year. Also as existing customers move to our new Connected Intelligence series of products, additional sales of products into our customer base are expected to increase substantially this year.
“Looking out a few years we see enormous opportunities in the HR/Payroll area where organisations are looking to move away from 'point solutions' to deeply integrated enterprise solutions,” he said. “Further down the track we expect this product to be a significant contributor to our profit.”
“We are particularly excited about the long term opportunities in the area of Business Intelligence, Works & Assets and CRM products.”
“TechnologyOne Financials continues to underpin TechnologyOne’s business, coupled with continuing strong growth from TechnologyOne Student Management and TechnologyOne Property/Rating & Local Government.”
“Our ‘TechnologyOne Evolve’ strategy guarantees our customers a simple and straightforward evolutionary path forward with regular software releases that provide new features, functions and technology to provide our customers with the long term security and functionality they are looking for.”
“Our new generation Ci product is proof of the success of our ‘TechnologyOne Evolve’ strategy as all the customers of our previous client/server product have been able to simply and easily migrate to our new generation product.”
“We also see long term opportunities to further expand the geographies we operate in, possibly to the USA and/or China.”