Slide 1: 2024 Full Year Results
19-Nov-2024 Page 1 2024 Full Year Results Ended 30 September 2024 19 November 2024
Slide 2: Disclosure Statement
19-Nov-2024 Page 2 Disclosure Statement TechnologyOne Ltd Full Year Presentation – 19 November 2024 TechnologyOne Ltd (ASX: TNE) today conducted a series of presentations relating to its 2024 Full Year results. These slides have been lodged with the ASX and are also available on the company’s websit
Slide 3: Agenda
19-Nov-2024 Page 3 Agenda • Highlights • Financial Results • Significant Achievements • Building the Future • Outlook for FY25
Slide 4: Agenda
19-Nov-2024 Page 4 Agenda • Highlights • Financial Results • Significant Achievements • Building the Future • Outlook for FY25
Slide 5: Continuing Strong Growth
19-Nov-2024 Page 5 Continuing Strong Growth FY24 Results Profit ARR growth growth driven by 18% UK & SaaS+ to $152.9m Up 20% to $470.2m
Slide 6: Mission
19-Nov-2024 Page 6 Mission Make life simple for our community, from its citizens to students, by leveraging our team’s innovation, drive and determination.
Slide 7: The Power of One
19-Nov-2024 54 Cah igrs ~ = a Dion not) = The Power Tech We dre ee experience revolution of One. is the big and for our answer. deliver. customers. e e ° e e e
Slide 8: Market focus and commitment
19-Nov-2024 Page 8 Market focus and commitment Innovation ERP – 4th generation The Power of One
Slide 9: Total ERP Solution
19-Nov-2024 Page 9 Total ERP Solution. + App Builder Business Corporate Analytics Performance Management DxP Essentials Enterprise Enterprise Enterprise Cash Enterprise Asset Budgeting Receipting Content Management Management DxP Local Government Financials Human Resources Performance Property and P
Slide 10: Acquisition of CourseLoop
19-Nov-2024 Page 10 Acquisition of CourseLoop App Builder Business Corporate Analytics Performance Management DxP Essentials Enterprise Enterprise Enterprise Cash Enterprise Enterprise Asset Budgeting Receipting Content Content Management Management Management DxP Local Government Financials Human R
Slide 11: OneEducation
19-Nov-2024 Page 11 OneEducation App Builder Business Corporate Curriculum Analytics Performance DxP Management Essentials Enterprise Enterprise Enterprise Cash Enterprise Asset Budgeting Receipting Content Management Management DxP Local Government Financials Human Resources Performance Property an
Slide 12: Market focus and commitment
19-Nov-2024 Page 12 Market focus and commitment Innovation ERP – 4th generation The Power of One
Slide 13: Deepest functionality for the markets we serve
19-Nov-2024 Page 13 Deepest functionality for the markets we serve. Local Education Government Asset and Health and Financial Government Project Community Services and Intensive Services Corporates industries We provide proven practice preconfigured solutions to reduce time, cost and risk
Slide 14: Market focus and commitment
19-Nov-2024 Page 14 Market focus and commitment Innovation ERP – 4th generation The Power of One
Slide 15: Visibility AI Hype cycle
19-Nov-2024 Page 15 Visibility Ai Hype cycle Cloud Hype cycle Time
Slide 16: Future community Tech
19-Nov-2024 Page 16 Security Future “SaaS+, which offers a faster implementation, meaning the Council could reap the benefits at an accelerated pace compared to traditional Tech time and material methodology.” community
Slide 17: Market focus and commitment
19-Nov-2024 Page 17 Market focus and commitment Innovation ERP – 4th generation The Power of One
Slide 18: The Power of One
19-Nov-2024 Page 18 The Power of One. IP Engine. Own customer relationship. 100% accountability. 99%+ retention. We take complete responsibility We do not use Implementation Partners or Re-Sellers
Slide 19: Market focus and commitment
19-Nov-2024 Page 19 Market focus and commitment Innovation ERP – 4th generation The Power of One
Slide 20: Profit Before Tax Growth of 18%
19-Nov-2024 Page 20 Profit Before Tax Growth of 18% Profit growth accelerated in FY24 Track record of achieving top of guidance 19% 18% 16% 15% Our Outlook 12% - 16% for FY25 is 10% - 15% strong FY21 FY22 FY23 FY24 FY25
Slide 21: Surpass $500m+ ARR by FY26
19-Nov-2024 Page 21 Surpass $500m+ ARR by FY26 Upgrades to $500m+ ARR by FY25 Upgrades to $500m+ ARR by H1 FY25
Slide 22: We continue to invest in R&D to build future platforms
19-Nov-2024 Page 22 We continue to Our Total We will continue to invest in R&D to Addressable market double in size every build future is $13.5b. 5 years. platforms for growth.
Slide 23: A new long-term target
19-Nov-2024 Page 23 A new long-term target
Slide 24: A new long-term target $1b+ ARR by FY30
19-Nov-2024 Page 24 A new long-term target $1b+ ARR by FY30
Slide 25: FY24 Results Summary
19-Nov-2024 Page 25 FY24 Results Summary FY24 FY23 VAR VAR • SaaS+ drives continuing strong growth $m $m $m % • UK sales ARR up 70% Total ARR 470.2 392.9 77.3 20 UK ARR 34.7 26.5 8.2 31 UK sales ARR 8.7 5.1 3.6 70 SaaS & Recurring Revenue 466.3 390.7 75.6 19 Profit ARR Total Revenue 515.4 441.4 74.1
Slide 26: Agenda
19-Nov-2024 Page 26 Agenda • Highlights • Financial Results • Significant Achievements • Building the Future • Outlook for FY25
Slide 27: FY24 Profit and Loss
19-Nov-2024 Page 27 FY24 Profit and Loss Record revenue and profit; investment in SaaS+ impacted margin ~1% Includes 1% Profit Before Tax margin in SaaS+
Slide 28: FY24 Profit by Segment
19-Nov-2024 Page 28 FY24 Profit by Segment Ge Strong Company profit of $152.9m, up 18% pcp Geography Analysis
Slide 29: R&D Investment
19-Nov-2024 Page 29 R&D Investment Driving sustained growth through strategic, consistent investment R&D Investment as % of revenue 30.0% 26% We invest in R&D for long 25% $200 25% 25% 25.0% term growth 23% 20.0% $150 We expect to maintain R&D investment at 20-25% of 15.0% revenue $100 $70 54% $61 C
Slide 30: Balance Sheet: Remains Strong
19-Nov-2024 Page 30 Balance Sheet: Remains Strong Clean balance sheet with no debt and growing cash holding enables flexibility
Slide 31: Cash Flow
19-Nov-2024 Page 31 Cash Flow Cash flow generation remains consistent at 101%
Slide 32: FY24 dividend up 15% to 22.45 cps
19-Nov-2024 Page 32 FY24 dividend up 15% to 22.45 cps Increased profit enables dividend uplift Confidence in the outlook • Strong balance sheet supports dividend level • Final Dividend 17.37cps 22.45 CAGR: • Significant cash holdings retained 15% +15.0% 19.52 for inorganic growth • Payout ratio 62%
Slide 33: Capital Management
19-Nov-2024 Page 33 Capital Management Cash balance enables prudent, consistent approach to shareholder reward TechOne’s financial metrics are extraordinary Within a disciplined framework, we will continue to reward shareholders: Strong Balance Sheet: No debt Growing profits + CFG = Increasing c
Slide 34: Agenda
19-Nov-2024 Page 34 Agenda • Highlights • Financial Results • Significant Achievements • Building the Future • Outlook for FY25
Slide 35: For our Community For your Community
19-Nov-2024 Page 35 App Builder Business Corporate Analytics Performance DxP Management Essentials Enterprise Enterprise Enterprise Cash Enterprise Asset Budgeting Receipting Content Management Management DxP Local Government Financials Human Resources Performance Property and Payroll Planning and R
Slide 36: For our Community For your Community
19-Nov-2024 Page 36 App Builder Business Corporate Analytics Performance DxP Management Essentials Enterprise Enterprise Enterprise Cash Enterprise Asset Budgeting Receipting Content Management Management DxP Local Government Financials Human Resources Performance Property and Payroll Planning and R
Slide 37: OneEducation - AUS
19-Nov-2024 Page 37 App Builder Business Corporate Curriculum Analytics Performance DxP Management Essentials Enterprise Enterprise Enterprise Cash Enterprise Asset Budgeting Receipting Content Management Management DxP Local Government Financials Human Resources Performance Property and Payroll Pla
Slide 38: For our Community For your Community
19-Nov-2024 Page 38 App Builder Business Corporate Curriculum Analytics Performance DxP Management Essentials Enterprise Enterprise Enterprise Cash Enterprise Asset Budgeting Receipting Content Management Management DxP Local Government Financials Human Resources Performance Property and Payroll Pla
Slide 39: SaaS+ lifts ARR by 40%
19-Nov-2024 Page 39 SaaS+ lifts ARR by 40% Solution as a Service
Slide 40: Path to ERP in 30 days
19-Nov-2024 Page 40 Path to ERP in 30 days 160 140 Powered by Days to implement 30 2022 2024 2025 2026 2027 2028
Slide 41: FY24 United Kingdom
19-Nov-2024 Page 41 FY24 United Kingdom Sales New ARR 70% higher than 2023 Total ARR up 31% to $34.7m versus pcp • 100% of implementations delivered via SaaS+ model • Hyperfocus strategy on two industries (LG and EDU) • Strong brand presence • Impressive referenceable • Strong pipeline • Strong sale
Slide 42: OneGov solution / Student+ solution
19-Nov-2024 Page 42 • OneGov solution • Student+ solution • Six-month implementation • Started in 1839 • Robust compliance requirements • Over 15,000 students today • Stringent security standards • Third student management win in FY24
Slide 43: All verticals performed strongly
19-Nov-2024 Page 43 All verticals performed strongly Our APAC market penetration in any single vertical does not exceed 15%2 Vertical Market Analysis ARR of $470.2m1, Up 20% | From $392.9m, FY23 Health and Community Asset and Project Intensive Financial Services & Corp Local Government Education Gov
Slide 44: Market Leading Net Revenue Retention and Churn
19-Nov-2024 Page 44 Market Leading Net Revenue Retention and Churn Target of 115%-120% Churn is below forecast of 1.8%, despite end of On-premise (EOOP) impacts. 1.8% Target of 1% or less
Slide 45: Total ARR and Average ARR per Customer
19-Nov-2024 Page 45 Total ARR and Average ARR per Customer On-prem to SaaS SaaS to SaaS+ $500m $0.4m $450m $400m $0.3m Total ARR per Customer $350m $300m Total ARR $250m $0.2m $470.2m $200m $392.9m $150m $320.7m $257.5m $0.1m $100m $202.5m $221.9m $153.9m $173.9m $107.9m $127.0m $50m $84.2m $55.3m $
Slide 46: R&D Significant Investment for future growth
19-Nov-2024 Page 46 R&D Significant Investment R&D investment of $112.0m up 21% Fastest Adoption for future growth 438 new features 92% Customer driven Build an app Google to faster without outcome having to code experience R&D 25% of investment of revenue2 $128.0m1 1 R&D expenditure before capitali
Slide 47: FY24 Summary
19-Nov-2024 Page 47 FY24 Record profit, revenue, and ARR Cash and Investments SaaS & Recurring Revenue Summary up 25% pcp to up 19% pcp $278.7m to $266.3 m UK Sales ARR Profit Before Tax NRR of 117% up 70% pcp up 18% pcp above target of to $8.7m to $152.9m 115% R&D investment for Surpass $500m+ Tota
Slide 48: Agenda
19-Nov-2024 Page 48 Agenda • Highlights • Financial Results • Significant Achievements • Building the Future • Outlook for FY25
Slide 49: Surpass $500m+ ARR by FY26
19-Nov-2024 Page 49 Surpass $500m+ ARR by FY26 Upgrades to $500m+ ARR by FY25 Upgrades to $500m+ ARR by H1 FY25
Slide 50: Continue to double in size every 5 years
19-Nov-2024 Page 50 Continue to double in size every 5 years
Slide 51: Total Addressable market $13.5b
19-Nov-2024 Page 51 Total Addressable market $13.5b Multiple Platforms for Growth Strong Net Revenue Retention (NRR] of 115-120% Significant ARR whitespace in our APAC customer base R&D over next 5 years doubles APAC ARR ARR whitespace Solution as a Service is a gamechanger, lifts ARR by 40% Strateg
Slide 52: A new long-term target $1b+ ARR by FY30
19-Nov-2024 Page 52 A new long-term target $1b+ ARR by FY30
Slide 53: Agenda
19-Nov-2024 Page 53 Agenda • Highlights • Financial Results • Significant Achievements • Building the Future • Outlook for FY25
Slide 54: Outlook
19-Nov-2024 Page 54 Outlook Strong ARR and profit Planned reduction of lower quality On track to surpass growth for FY25 one-off Traditional Consulting Fees $500m+ ARR by H1 replaced with high quality SaaS+ FY25 revenue • The markets we serve are resilient. • Our customers have independently verifie
Slide 55: Our People and Our Community
19-Nov-2024 Page 55 Our goal is to lift 500,000 children and their families out of poverty Our People and Our Community
Slide 56: Continuing Strong Growth
19-Nov-2024 Page 56 Continuing Strong Growth FY24 Results Profit ARR growth growth driven by 18% UK & SaaS+ to $152.9m Up 20% to $470.2m
Slide 57: $1B+ ARR by FY30
19-Nov-2024 Page 57 $1B+ ARR BY FY30 19 Products Multiple platforms $13.5B for growth NRR target Total Addressable Market 115%-120%
Slide 58: Making life simple for our community
technology? Making life simple for our comm
Slide 59: Appendices
19-Nov-2024 Page 59 Appendices • Appendix A – R&D Disciplined and Transparent • Appendix B – Results Analysis • Appendix C – Drivers for Long Term Growth • Appendix D – Glossary
Slide 60: Appendix A: R&D Disciplined and Transparent
19-Nov-2024 Page 60 Appendix A: R&D Disciplined and Transparent FY24 Software R&D Development Percent Amortisation Amortisation Net Expense Investment - Capitalised Capitalised Expense Period through P&L (#039;000) (#039;000) % (#039;000) Years (#039;000) FY21 77,005 41,858 54.4% 13,429 5 48,576 FY22 92,197 50,
Slide 61: Appendix B: FY24 Results Analysis
19-Nov-2024 Page 61 Appendix B: FY24 Results Analysis FY24 FY23 Var $’000 $’000 % Revenue excl interest 506,981 437,2241 16 Expenses (excl R&D, interest, D & A) 232,859 204,4942 14 EBITDAR 274,122 232,730 18 EBITDAR Margin 54% 53% R&D Expenditure (before capitalisation) 127,995 111,995 14 R&D as % o
Slide 62: Appendix C: Drivers for Long Term Growth
19-Nov-2024 Page 62 Appendix C: Drivers for Long Term Growth Increase Product Penetration Increase Market Penetration Expand Geographies 19 Licensable products1 6 Vertical markets1 APAC & UK1 Over 500+ licensable modules BY VERTICAL BY PRODUCT Asset Intensive, New Zealand, 9.2% Financial United App
Slide 63: Appendix D: Glossary
19-Nov-2024 Page 63 Appendix D: Glossary Annual Licence ARR Annual Recurring Revenue relating to annual licence fees for On-premise customers APAC Asia Pacific - Includes Australia, New Zealand, Malaysia and the South Pacific ARR Annual Recurring Revenue Cash Flow Generation (CFG) Cash flow from Ope
Slide 64: Making life simple for our community
technology? Making life simple for our comm