Technology One (TNE) – recurring revenues reign supreme
TNE was the market’s shooting star on Tuesday, surging ~11% after bearing earnings guidance:
- Profit before tax rose 18.3%, well ahead of 12-16% guidance.
- Total annual recurring revenue (ARR) soared 20% to $470.2mn, with the company evolving well in the UK.
- Total revenue increased 17% to $515.4 million, while revenue from SaaS and recurring business rose 19%
Analysts welcomed the result with open arms. Wilson said they’re confident that TNE can achieve its goal of $1bn annual returning revenue by FY30—we wouldn’t argue with them!
- We like TNE, but the risk/reward ratio is difficult at $30, its one to consider during its next pullback.
MM is cautiously bullish TNE
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