Technology One "Underlying performance solid. Watching Plus (AI) upside"

研报英文原文证据摘录

Technology One "Underlying performance solid. Watching Plus (AI) upside"

0.49 -1 0.50

accelerate SaaS ARR growth into FY27e/28e, which would give market confidence on

09/27E 0.61 0.62 1 0.60

AI being a true TAM expander for TNE and broader software. Company feedback

09/28E 0.74 0.77 5 0.71

suggests: i) 25-35% of Plus deals were standalone, the rest drove cross-sell; ii) every

major Local Govt deal secured in 1H26 included Plus, and iii) recent James Cook Uni Lucy Huang

(JCU) win suggests customer willing to pay between 10-20x more usage on Plus vs Analyst

current inclusion of 1000 conversations/mth/product) given productivity savings - e.g. lucy.huang@ubs.com

UK customer currently spending £2.38 to handle customer service call but only able to +61-2-9324 2253

answer 85% of calls, vs can pay TNE 15c per conversation. JCU using InvoiceIQ at 15c Ailsa Lei

per invoice and now doing >100k invoices vs expectations of ~10k. We forecast SaaS Analyst

ARR CAGR of 18% across FY26e-28e with upside if Plus accelerates further. ailsa.lei@ubs.com

+61-2-9324 3181

Watching impact of rising AI usage on margins

We are watching margins at TNE given they are most accelerated across our

ANZ SaaS coverage on usage based pricing and the negative AI narrative of impact of

token costs on SaaS margins. For now, we assume TNE can pass through AI token costs

at their price point of ~30c/conversation, as TNE leverages the most cost-effective

models for the right answers. Interestingly, TNE's GP margins increased +80bps vs pcp

and we watch to see whether this can continue to improve.

Valuation: DCF-based PT trimmed by -1% to $31.60/sh

Our DCF-based PT is trimmed by -1% to $31.60/sh to reflect earnings adjustments.

Highlights (A$m) 09/23 09/24 09/25 09/26E 09/27E 09/28E 09/29E 09/30E