Technology One (TNE) shares fall despite beating expectations
TNE -1.63%: first-half results were out for the HR & asset management SaaS business today with shares tracking lower despite a positive presentation. Annual Recurring Revenue (ARR) was up 44% on last year to $225m and Profit Before Tax (PBT) was 14% higher to $42.5m, both a small beat to expectations. Cashflow was weak, attributed to further R&D expenditure, though that is expected to normalize. The company reiterated long term guidance of $500m ARR by FY26, and provided FY22 guidance that looks conservative given the first-half performance. They expect PBT growth of 10-15% and ARR growth of 40% for the full year, a 6% improvement on prior guidance. Overall a strong set of numbers though shares were lower with the tech sector under pressure.
