Story image

TIN Report hints at new chapter in NZ tech sector

28 Sep 18

What makes a top tech company in New Zealand? According to initial signs from this year’s TIN Report, a healthy underlying tech sector and the ability to rapidly scale growth are just two of many factors.

According to the report, New Zealand’s top 200 tech companies have achieved 38% profitability growth in the last year alone, which is the fastest rise since the report first started tracking movement in 2005.

According to the investigators behind the TIN Report, this growth is an important milestone because it shows that many high-growth companies are starting to fund expansion organically, and achieve economies of scale while doing so.

“The sector is entering a new chapter in New Zealand’s technology story,” comments TIN managing director Greg Shanahan. “The rising profitability reflects the wealth of experience, capital and scale the sector has built up; creating the foundations for widespread and stable growth”.

Tech investors have welcomed the news – according to TIN, stock prices for TIN200’s largest ten listed companies by market capitalisation have risen 57.3% in the past year. The TIN200 is a listing of New Zealand’s top 200 tech companies according to their revenue.

“It’s important to stress also that this overall rise in profitability for the TIN200 has not been at the expense of revenue growth this year, but rather has been driven by these tech businesses now being more self-sustaining,” Shanahan continues.

While the full TIN Report is not due out until late October, the firm says that there are 19 new firms that make an appearance on the TIN200. This indicates that New Zealand is now producing even more globally-competitive companies in the tech sector.

“The advantage with technology as an industry is that, unlike dairy and tourism, it’s not stymied by natural resource and infrastructure constraints, other than access to talent and capital,” Shanahan says.

Last year’s TIN Report named firms including Datacom Group, Xero, Orion Health, and Gallagher Group as some of the top performers. They were among the 200 biggest tech companies that achieved exports totalling more than $7.3 billion.

According to Simon Bridges, who was still Economic Development Minister at the time last year’s report was released, the report shows that tech companies make an important contribution to New Zealand.

The 2017 TIN Report also found that TIN200 growth is being led by the regions: Hamilton, Wellington, and the South Island are leading the pack.  It also found that TIN200 companies created more than 4300 jobs globally and employ approximately 43,000 staff in total.

Report finds GCSB in compliance with NZ rights
The Inspector-General has given the GCSB its compliance tick of approval for the fourth year in a row.
Preparing for e-invoicing requirements
The New Zealand and Australian governments are working on a joint approach to create trans-Tasman standards to e-invoicing that’ll make it easier for businesses in both countries work with each other and across the globe
5c more per share: Trade Me bidding war heats up
Another bidder has entered the bidding arena as the potential sale of Trade Me kicks up a notch.
Hootsuite's five social trends marketers should take note of
These trends should keep marketers, customer experience leaders, social media professionals and executives awake at night.
Company-X celebrates ranking on Deloitte's Fast 500 Asia Pacific
Hamilton-based software firm Company-X has landed a spot on Deloitte Technology’s Fast 500 Asia Pacific 2018 ranking - for the second year in a row.
Entrepreneur reactivates business engagement in AU Super funds
10 million workers leave it up to employers to choose their Super fund for them – and the majority of employers are just as passive and unengaged at putting that fund to work.
Tether: The Kiwi startup fighting back against cold, damp homes
“Mould and mildew are the new asbestos. But unlike asbestos, detecting the presence – or conditions that encourage growth – of mould and mildew is nearly impossible."
Capitalising on exponential IT
"Exponential IT must be a way of life, not just an endpoint."