The share price experienced a significant increase of up to 12.4%, reaching A$30.070 per share as of 0122 GMT. This notable performance positioned TechnologyOne as one of the leading gainers within the benchmark index, which itself experienced a rise of 0.8%.
The cloud service provider reported a pre-tax annual profit of A$152.9 million (approximately $99.34 million), reflecting an 18% increase compared to the same period last year, surpassing its growth forecast of 12%-16%.
According to Visible Alpha, as referenced by Jefferies, the anticipated pre-tax profit for fiscal 2024 was A$149 million.
If the gains are maintained, TechnologyOne's shares could experience their best trading session since late August 2006.
The significant profit increase was attributed to strong performance in the UK sector, while the company's global software-as-a-service (SaaS) enterprise resource planning solution provided substantial value to both new and existing clients, as stated by the company.
Based in Brisbane, TechnologyOne reported annual recurring revenue of A$470 million, marking a 20% year-on-year growth, and is on track to surpass A$500 million by the first half of fiscal 2025.
"Growth in the UK has remained robust, and the company's shift to SaaS+ is expected to enhance earnings visibility in the future," noted Jefferies analysts in a client communication.
Furthermore, TechnologyOne has made adjustments to its dividend policy. The company has shifted from an 8%-10% growth target to a payout ratio of 55%-65%. This strategic move aims to enhance returns for shareholders. In line with this, TechnologyOne has declared an annual dividend of A$0.225 per share.