TechnologyOne passed A$500 million in annual recurring revenue in the first half of FY25, 18 months earlier than planned, and set a target of more than A$1 billion ARR by FY30. In FY25 ARR grew 18% to A$554.6 million, net revenue retention was 115%, and profit before tax rose 19%. Deep switching costs plus its 'SaaS+' bundle drive that consistency.
Key takeaways
- TechnologyOne passed A$500 million ARR in the first half of FY25, 18 months ahead of plan, and now targets more than A$1 billion ARR by FY30.
- FY25 (to 30 September 2025): ARR A$554.6 million (up 18%), total income A$610.0 million (up 18%), profit before tax A$181.5 million (up 19%).
- Net revenue retention was 115%, and ARR is now 91% of total revenue.
- Profit before tax grew between 15% and 19% every year from 2021 to 2025.
- 'SaaS+' bundles implementation into the subscription, removing the biggest upfront barrier to buying.
Picture a local council's finance team.
Their software runs payroll for hundreds of staff, the budget, every rates notice, every asset from footpaths to fleet vehicles. It's connected to a dozen other systems. People have been trained on it for years.
A competitor calls with a cheaper quote.
Does the council switch? Of course not. The risk of something breaking is far bigger than the saving. If they're unhappy, they pick up the phone to their current supplier and ask them to fix it.
That phone call is TechnologyOne's moat.
What did the book say about TechnologyOne in 2022?
In Chapter Five, I used TechnologyOne as my example of high switching costs, which I also call embedding.
The company sells enterprise software in big verticals: government, healthcare and education. In 2020, its full-year results showed churn below 1%.
Why so low? Quality plays a part. But mostly, the software becomes so embedded in its customers' organizations that switching is prohibitive. I wrote that customers "see the price, rethink, and then talk to TechnologyOne's team if they have issues." Those conversations let TechnologyOne fix problems before the customer leaves.
So the customer stays.
What's happened since?
The Brisbane company kept compounding. Here are the headline numbers.
| Measure | Result |
|---|---|
| A$500 million ARR milestone | Passed in the first half of FY25, 18 months earlier than planned |
| New target | More than A$1 billion ARR by FY30 |
| FY25 total ARR | A$554.6 million, up 18% |
| FY25 total income | A$610.0 million, up 18% |
| FY25 profit before tax | A$181.5 million, up 19% |
| Net revenue retention | 115% |
| ARR as a share of total revenue | 91% |
| UK ARR | A$51.8 million, up 49% |
| Profit before tax growth, 2021 to 2025 | Between 15% and 19% every year |
Read that last row again. Five straight years of profit growth in a tight band. Through a pandemic recovery, inflation and rising interest rates.
That's what a deep moat plus recurring revenue looks like. Boringly reliable.
How does 115% net revenue retention happen?
Net revenue retention of 115% means existing customers, as a group, paid TechnologyOne 15% more in FY25 than the year before, after any cancellations and downgrades.
Put simply: if TechnologyOne had signed no new customers at all, it would still have grown.
That comes from two things working together:
- Almost nobody leaves. Switching costs keep churn tiny.
- Customers buy more. Existing customers expand what they pay for, helped by the steady move to cloud subscriptions through SaaS+.
In the book I explain this as net negative churn: when expansion revenue from existing customers outweighs what you lose. It's the most powerful position a subscription business can be in.
What is your retention really worth?
Work out your net and gross revenue retention in a couple of minutes with the free NRR and GRR Calculator.
What is SaaS+, and why does it matter?
The biggest barrier to buying enterprise software usually isn't the subscription. It's the implementation bill.
Moving a council or university to a new system takes months of consulting work. Traditionally, that's a large upfront invoice that needs its own approval, often from a different budget.
TechnologyOne's SaaS+ bundles implementation services into the subscription.
Illustrative: why bundling implementation helps
Say a customer faces a A$60,000 implementation bill plus a A$10,000-a-month subscription. The upfront bill needs board sign-off and a capital budget.
Spread the implementation across a five-year subscription and it becomes about A$1,000 extra a month: A$11,000 a month, one line item, one approval.
The provider gets the same money over time, plus a longer, stickier commitment. These numbers are made up to show the idea, not TechnologyOne's prices.
That's the Bundled Services model from Chapter Two, applied to enterprise software. It removes friction at the moment of buying and makes the whole relationship recurring.
Why it worked
Three threads from the book come together here.
- Switching costs (the S in MOATS). The product is embedded so deeply that customers fix problems rather than leave. See the full MOATS framework.
- Recurring revenue share. ARR is now 91% of revenue. Investors pay for predictability, which is why Australian SaaS valuations lean so heavily on ARR and retention.
- A bold, public target. Hitting A$500 million 18 months early, then publicly aiming for A$1 billion by FY30, gives everyone inside the company a clear scoreboard.
Is there a downside? Long sales cycles and a heavy reliance on public-sector budgets. This is not a fast-growth playbook. But it's a durable one.
Free Subscription Profit Review
Australian business owners can book a free 30-minute review with a BPAG Accountants adviser. An honest conversation about:
- whether a subscription model could work for your business
- how recurring revenue could cover your fixed costs each month
- how it could lift what your business is worth
No cost, no obligation. General information only until we understand your situation.
What you can steal
You don't need to sell to councils to use this. Here's how it translates to a smaller business.
- Bundle onboarding into the monthly fee. An accountant, IT provider or agency can spread a setup project across a 12- or 24-month plan. The client avoids a big first invoice, and you get recurring revenue plus a longer commitment. My bundled services guide shows how to package it.
- Embed yourself in the client's workflow. The more of their systems, reports and routines run through you, the less likely they are to leave on price.
- Keep the "talk to us before you leave" door open. Make it easy for an unhappy client to reach a real person. Every fixable complaint is a saved account.
- Track net revenue retention. If it's above 100%, you'd grow with zero new sales. Work yours out with the NRR calculator.
- Set a bold, dated target. Write it down and share it with your team.
The lesson
Deep switching costs plus a steady move to subscription produce boringly reliable growth: double-digit growth every year and retention above 100%, even selling into a cautious public sector.
And bundling services into the subscription removes the biggest barrier to buying.
So, if a competitor offered your best client a 20% discount tomorrow, would they switch? Or would they call you first?
For another Australian company that used its moat to make a bold pricing move, read how WiseTech killed seat fees, and compare with Atlassian's push to move every customer to the cloud.
Frequently asked questions
What does TechnologyOne sell?
TechnologyOne sells enterprise software to large organizations in big verticals such as government, education and health. ARR now makes up 91% of its revenue, so most of what it earns comes from subscriptions. Because its software sits inside customers' core operations, it becomes deeply embedded, which is why churn has stayed so low.
What is TechnologyOne's SaaS+?
SaaS+ is TechnologyOne's offer that bundles implementation services into the subscription. Instead of paying a large upfront consulting bill to get set up, the customer pays one ongoing fee that covers both the software and the work to implement it. That makes moving to the cloud easier to approve and ties the services relationship to the subscription.
Is 115% net revenue retention good?
Yes, especially for a company selling mostly to the public sector, where budgets are cautious. 115% means that, after any downgrades and cancellations, existing customers paid 15% more than a year earlier. It means TechnologyOne would grow even if it signed no new customers. Compare it with other companies in our NRR benchmarks page.
How big is TechnologyOne in the UK?
In FY25, TechnologyOne's UK ARR grew 49% to A$51.8 million. That's still under a tenth of its total ARR, but it shows the model can be exported: the same embedded, public-sector-focused software, sold to UK councils and universities. For Australian software companies, it's a useful example of expanding into a similar market rather than a very different one.
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Robert Coorey, MBA
Robert is the author of The Subscription Playbook and Feed a Starving Crowd and a Director at BPAG Accountants in Sydney. More about Robert.
Sources
- TechnologyOne, FY25 Full Year Results Presentation (Nov 2025)
- TechnologyOne, Annual Report 2025
- TechnologyOne, SaaS+ Delivers: Upgrades full year Profit Growth (May 2025)
- TechnologyOne, Half Year Results Presentation 2025
Facts and prices checked 27 October 2026. Spotted something out of date? Tell us.