Story image

NZ top 200 tech companies hit $10bil revenue, third largest export category

18 Oct 17

New Zealand’s top 200 technology companies (the “TIN200”) have set a new milestone this year, recording just over $10 billion in combined revenues with more than $7.3 billion sourced through exports.

The TIN200 companies, which are ranked by revenue, now contribute the equivalent of 10% of all New Zealand exports, highlighting the integral part the sector plays in the country’s economy. 

This places it third behind the contributions of dairy and tourism as a source of offshore revenue.

Two-thirds of the offshore revenue growth can be attributed to a robust 18.8% increase in TIN200 revenues in the North American market.

These are some of the key findings of the thirteenth annual TIN Report, an analysis of the performance of the top 200 New Zealand-founded high-tech companies in the areas of information and communication technology (ICT), high-tech manufacturing and biotechnology. 

The report, which is produced by Technology Investment Network (TIN) and sponsored by New Zealand Trade & Enterprise, Callaghan Innovation, Spark, EY and AJ Park, was presented at an awards ceremony held at St Matthew’s in Auckland. 

“This has been a defining year for the TIN 200 companies”, says Greg Shanahan, TIN managing director. 

“We’ve seen a sustained increase of around 8% in both revenue growth and exports but more significantly, the real story is in the integral part that the technology sector now plays in the country’s economy.”

TIN200 companies created 4,352 new jobs to employ over 43,000 staff globally with an average salary of just under $84,000. 

“The broadening economic impact of this growth is creating opportunities throughout New Zealand society,” says Shanahan.

Māori participation in the tech sector is growing and for the first time this year, the TIN Report covers the performance of Māori-owned or Māori-investment backed tech companies.

Māori companies contributed an estimated $94 million to total TIN200 revenue. 

TIN200 growth has been concentrated outside of Auckland, with other regions outpacing the country’s commercial hub.

This year has seen Hamilton, Wellington and the South Island regions leading TIN200 growth.

These regions each grew by over 10% and collectively accounted for more than 60% of total TIN200 revenue growth, but only 40% of the total TIN revenue.

Additional key findings of this year’s TIN Report include:

•  US offshore revenue for the TIN200 increased nearly 19% to nearly NZ$2.4 billion.  The European market grew 3.1% and the Asia market 5.3%

•  Healthcare remains the largest secondary sector in terms of revenue for the TIN200 at nearly NZ$1.8 billion

•  Companies with over $20 million revenue grew at twice the rate of companies below NZ$20 million.  The 90 companies with revenues NZ$20 million and over grew at 8.4%, compared to just 3.8% revenue growth for the 110 companies with under $20 million in revenue

Top 10 Companies by Rank                                                                                                                       

Datacom Group

Fisher & Paykel Appliances

Fisher & Paykel Healthcare

Xero​

Gallagher Group

Orion Health

Douglas Pharmaceuticals

Tait Communications

NDA Group

Temperzone Group

Magic Memories

How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.
25% of malicious emails still make it through to recipients
Popular email security programmes may fail to detect as much as 25% of all emails with malicious or dangerous attachments, a study from Mimecast says.
Human value must be put back in marketing - report
“Digital is now so widely adopted that its novelty has worn off. In their attempt to declutter, people are being more selective about which products and services they incorporate into their daily lives."
Wine firm uses AR to tell its story right on the bottle
A Central Otago wine company is using augmented reality (AR) and a ‘digital first’ strategy to change the way it builds its brand and engages with customers.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill. 
Protecting organisations against internal fraud
Most companies tend to take a basic approach that focuses on numbers and compliance, without much room for grey areas or negotiation.
Telesmart to deliver Cloud Calling for Microsoft Teams
The integration will allow Telesmart’s Cloud Calling for Microsoft Teams to natively enable external voice connectivity from within Teams collaborative workflow environment.
Jade Software & Ambit take chatbots to next level of AI
“Conversation Agents present a huge opportunity to increase customer and employee engagement in a cost-effective manner."