Tech Export Sector Surges to Record Highs

Tech Export Sector Surges to Record Highs

Annual TIN100 Report finds a record $609m (7.3%) surge to total revenues approaching $9B for leading 200 NZ tech exporters

Auckland, 28 October 2015 – New Zealand’s technology export sector has shifted up a gear with record growth of $609m (7.3%) to combined revenues of nearly $9B for the 200 companies listed in the 2015 TIN100 Report. Strong growth was seen in all major export markets, across all major industry sectors and translated to growth for the tech economy across all regions of New Zealand.

These are some of the key findings of the eleventh annual TIN100 Report, an analysis of the performance of the top 200 New Zealand-founded High-tech companies, announced at a major launch held at ASB’s Headquarters in Auckland on 28 October 2015. The findings will also be presented at launch events in Wellington and Christchurch on 29 October.

The TIN100 Report monitors the performance of New Zealand’s 200 (TIN100 and TIN100+) largest technology exporters in the areas of Information and Communication Technology (ICT), High-tech Manufacturing and Biotechnology.

It is produced by Technology Investment Network (TIN) and is sponsored by Callaghan Innovation, NZTE, ASB, EY, and AJ Park.

“Although macroeconomic factors played a significant part in the performance, much of the success can be attributed to the hard work and ambition of the companies themselves” said TIN Managing Director, Greg Shanahan. There is a very sophisticated ecosystem operating in New Zealand now with companies conscious of what the key success drivers are, and eager to pioneer best practises to achieve market leadership.

The increasing strength of the sector can be witnessed in its broad based global performances. Continuing growth in NZ and the US were to be expected, but TIN100 companies grew strongly in the Australian and European markets also. Exports rose by 7.5 % to $6.5B.

In the 2014-15 year TIN100 companies increased their combined revenue by 7.5% to $8.2 billion. TIN100 export revenues increased by 7.5% to NZ $6.05B. The next 100 companies (TIN100+) ranked by revenue grew by 5.6% to $754m with exports of NZ$492m up +8.2%.

A highlight of the TIN100 Report was the dramatic growth of companies in the Financial Services Technology Sector, the fastest growing sector in both % and dollar terms. The 11 companies across the TIN100 and TIN100+ groups grew revenues by $129m (+58%). Six of the twenty high growth companies in the EY Ten companies to Watch and ASB Hot Emerging Companies announced in September were Financial Services Technology companies. These companies demonstrate the rapid scalability and growth possible with Software as a Service (SaaS) /Cloud Based solutions.

The drivers underpinning this kind of growth are described in the TIN100 Report’s ‘TIN Drivers of Success Section’. “New funding opportunities, investment in innovation, scalable business models and compelling company cultures that attract talent, are forming a potent mix that should see continuing growth for the foreseeable future,” said Shanahan.

There were 13 public listings for TIN200 companies since 2013, more than the previous 10 years. The capital available from new and established publicly listed companies; and the rise in US investment; has enabled companies to pursue high growth strategies with heavy increases in R&D and Sales and Marketing spend. Total R&D spend by TIN200 companies is approaching $1B.

All of this means more jobs, and employee numbers grew by 2,410, to over 37,000 staff.

It’s an exciting time for TIN100 companies said Shanahan, “whilst technology exports aren’t about to knock dairy exports off its perch just yet; watch this space.”

Copies of the report are available in eBook or hard copy and can be ordered from www.tinetwork.com

Top 10 Companies by Rank:

EY Ten Companies to Watch – TIN100 companies with the largest revenue growth in 2015:

The EY Ten Companies to Watch list represents the TIN100 companies who achieved the highest dollar value increase in revenue in the past year. Included are companies that have provided revenue figures and achieved a minimum growth of 5%.

ASB Ten Hot Emerging Companies– the TIN100+ companies with the largest revenue growth in 2015:

The ASB Ten Companies to Watch list represents the TIN100+ companies who achieved the highest dollar value increase in revenue in the past year. Included are companies that have provided revenue figures and achieved a minimum growth of 5%.

ENDS

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