Yahoo Finance Top 5 Aussie tech companies for 2022, revealed
Australian technology companies are growing at the quickest pace since 2004 according to Deloitte's new Technology Fast 50 report report.
The new list ranks Australia’s top 50 public and private tech companies based on percentage revenue growth over the last three years.
It reveals that 2022 has seen the highest average growth rate in 18 years, with a staggering average 1,308 per cent revenue growth across the three-year period, up 40 per cent on 2021’s data.
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New Business Models are ‘scaling rapidly’
Yahoo Finance Australia spoke to Deloitte’s Joshua Tanchel, lead partner for the firm's Tech Fast 50 list, to find out why this may be the case.
“New business models that are able to scale rapidly have meant the average growth rate has been exceptional this year,” Tanchel said, highlighting overall winner Montu as a prime example.
The Melbourne based firm have been successful in building an integrated cannabis ecosystem, which streamlines the journey for patients and connects Australians to highly qualified doctors via an online platform.
It’s a formula that has seen the business grow by an eye watering 20,728 per cent since 2020, over four times faster than their nearest rival on the Top 50 list.
‘Pathway to profit’ key to investment
While Tanchel acknowledged that the success of firms like Montu had skewed the average result to some extent this year, he points out that eleven of the top fifty firms achieved over 1,000 per cent growth this year.
As a result, the appetite for solid technical investments among the Venture Capital community is still strong, despite the worsening economic climate.
“Valuations of growth stocks have fallen in recent months due to a less buoyant ASX, but the availability of investment capital is still there and looking for good quality companies to invest in,” Tanchel said.
One trend his firm has seen in recent months is the need for technology firms to have “a clear pathway to profit” in order to attract the external investment many need to prosper.
Being able to demonstrate a compelling business model to deliver profit within a reasonable timescale is critical in the current climate.
Software driving the biggest growth
One sector of the technology market that has shone in 2022 is software development, which represented 38 per cent of this year’s list, compared with 16 per cent in 2021.
“There is a big appetite from private equity to invest in B2B software companies at present,” Tanchel per cent.
Software has risen back to the top of the class after the COVID years of 2020 and 2021, which saw direct to consumer businesses grow at a faster rate as they capitalised on the shift online during lockdowns.
One new element of this year’s list has been the introduction of a ‘Climate Award’, which sought to recognise the businesses using technology to drive eco-friendly solutions.
The inaugural winner of this award was EVSE Australia, which provides electric vehicle charging solutions and has grown at an impressive 280 per cent since 2019.
This sector is set to grow significantly in the coming years, with the report predicting that over A$5 trillion per year will be invested globally over the next eight years to help solve the climate crisis.
As we move into 2023, it’s clear that technology will be a key driver of economic growth in the coming years, and the Deloitte Tech Fast 50 report has proven once again that Australian firms are well placed to be part of this success.
With local technology giant Atlassian reaching an astounding market capitalisation of US$65 billion last year, maybe one of these companies – the top five in this year’s impressive list – can be the next Australian firm to make its mark on the world stage:
1. Montu - online platform for medicinal cannabis (20,728% growth)
2. Frankie One – online verification & onboarding software (4,743% growth)
3. me&u – hospitality software provider (3,819% growth)
4. Yellow Canary – automated payroll compliance software (3,692% growth)
5. Kaddy – online wholesale beverage marketplace (3,540% growth)
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