The New Zealand technology sector continued its strong growth trajectory, with the top 200 companies hitting $12.7 billion in revenue, up 8.3 per cent or nearly $1 billion for the year.
The latest annual Technology Investment Network (TIN) report showed export revenue for TIN200 companies rose by 10.6 per cent to a total of $9.4 billion this year in the face of tough headwinds.
The top 200, which was led by Datacom Group, now employ 55,000 people globally, up 8 per cent, with over half of those in New Zealand.
“With continuing double-digit export growth creating record employment growth, the TIN200 companies are well positioned in terms of scale, growing profitability and global spread to absorb the negative impact of COVID-19 and take advantage of the opportunities for growth as a result,” said Greg Shanahan, founder and managing director of TIN.
TIN200 employees were paid over $4.5 billion in wages at an average of more than $82,000.
In 2015, 38 tech companies in New Zealand had revenues over $50 million, however, five years later that has increased to 56. These companies accounted accounted for 70 per cent of growth in the TIN200.
ICT firms displayed particular strength. With 101 companies now in the TIN200 (94 last year), ICT continued to be the driving force, growing revenue by 11.4 per cent, compared with 8.3 per cent overall.
The ICT sector’s drive for profitability was also rewarded with a 38.7 per cent lift in reported EBITDA.
New jobs in the tech sector surged to record levels. While ICT firms increased employee numbers by 4000, jobs in the primary sector increased by 3049, while the number of high-tech manufacturing jobs rose by 977.
Fintechs registering as the fastest growing sector on the TIN200 for the fifth consecutive year, with a five-year compound growth rate of 31 per cent and several new company arrivals on the TIN200.
Revenue growth from public companies was exceptionally strong, with the 25 listed companies on the TIN200 representing 62 per cent of the total revenue growth.
Companies in the Wellington/Manawatu region showed strongest growth, up 10.6 per cent, but Auckland still led on revenue.
With 120 of the TIN200 companies headquartered in Auckland, New Zealand’s largest city continued to be the powerhouse of the NZ tech sector.