Australia’s TechnologyOne reaffirms outlook as half-year profit rises on AI boost

May 19 (Reuters) – Australia’s TechnologyOne has reported a 6% rise in its half-year profit on Tuesday and reaffirmed its annual forecast, supported by the launch of artificial intelligence products and the integration of AI into its software-as-a-service offerings.

The enterprise software provider reported a net profit attributable of A$66.8 million ($47.90 million) for the six-month period ended March, a rise from A$63 million a year earlier.

Shares of the company were down 5% at A$27.2, as of 0004 GMT.

The company recorded an all-time high total half-year revenue of A$322.7 million and total annual recurring revenue (ARR) of A$598.0 million.

“We secured significant customer wins that fuelled our organic growth in the first half,” TechnologyOne said, adding that it observed particularly strong momentum in the local government sector that drove 27% ARR growth in its vertical.

The company reaffirmed its full-year profit and ARR forecast, which it had upgraded in February, and expects to achieve the top end of its 16%-18% ARR growth forecast.

The Brisbane-based company also declared an interim dividend of 8 Australian cents per share, up from 6 Australian cents last year.

($1 = 1.3945 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Shilpi Majumdar and Sherry Jacob-Phillips)