TechnologyOne $13.5 billion market opportunity to drive growth to $1 billion ARR in five years

Australia’s largest SaaS ERP player TechnologyOne announced it was on track to deliver $500 million Annual Recurring Revenue (ARR) by the first half of 2025, more than a year ahead of schedule, and postmarked an ambitious new goal of $1 billion ARR by 2030 at its inaugural Investor Day at its Brisbane headquarters today.

The ASX-100 company, which doubles in size every five years, took investors through a total addressable market (TAM) estimated at over $13.5 billion, providing all the runway needed for it to deliver on its ambitious goal.

CEO Ed Chung outlined the company's six platforms for diversified growth, from the significant whitespace in its current customer base, to its investment in R&D to develop solutions such as Digital Experience Platform (DxP) and AppBuilder, strategic acquisitions to expand its product offering, new customers and the UK, which was identified as a key target market likely to take over APAC in the years to come.

Mr Chung said: “Over the past 37 years, we have continued to grow strongly through all types of economic conditions and we will continue to do so because the markets we serve, such as local government, higher education and government, are resilient and we provide them with mission-critical software with deep functionality.”

The executive leadership team also did a deep dive into Solutions as a Service, or SaaS+, an industry-first concept that sees TechnologyOne remove the need for traditional long, complex, expensive and risky implementations. The company is driving down the days to implement its solution, reducing risk and speeding up time to value for customers, all for one single SaaS+ fee.

“We are the only company in the world able to deliver SaaS+, thanks to our Power of One proposition that sees us develop, sell implement, support and maintain the software ourselves. SaaS+ will create a long-term revenue and profit tailwind for us,” Mr Chung said.

“We’ve established continuous feedback loops to reinvest that IP into product development, we have refined implementation methodologies, we have automated and productised common business functions, meaning our solutions can be implemented in a fraction of the time of a usual IT implementation, reducing efforts by up to 80 per cent – resources and funding institutions can invest into other initiatives. Our vision is bold: implement an ERP in 30 days by 2030.”

The day was also a chance to hear from Michael Edgar, CEO of Sydney’s Hills Shire council, a TechnologyOne customer for over two decades, as well as experience a day in the life of a council showcasing the TechnologyOne’s OneCouncil solution.

“Our Global SaaS ERP allows our customers to innovate and meet the challenges ahead with greater agility and speed, without worrying about underlying technologies, making life simple for them,” Mr Chung continued.

“Since listing on the ASX 25 years ago, investors tell us that we have been one of the best performing stocks based on total shareholder returns and I think that comes down to our uniqueness, which puts us in a very strong position to continue our track record of innovation and delivering continuing strong growth. Our product and solutions are doing something for our communities, it has a real purpose and that’s a powerful proposition for investors.”