TechnologyOne is a major supplier of ERP software benefiting from strong growth in its SaaS offerings. In the six months to March 2021 Annual Recurring Revenue from SaaS was up 41% year-on-year. The company continues to experience strong growth in new contracts mainly with government bodies. TechnologyOne has started to globalise its business in recent years, starting in the UK. Double-digit growth in R&D spend helps TechnologyOne stay competitive. The current EV/EBITDA multiple on consensus FY23 earnings is around 19x. However, the expected strong earnings growth of this company is becoming more dependable now that 85% of revenue comes from recurring SaaS business.


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