Greg Shanahan (TIN200)
The yearly stock-take of the tech sector, the TIN200 report, found the industry in robust good health, gaining $1.1 billion in revenue to reach $12.1 billion in total.
It was the second year running the report recorded both double digit revenue growth and growth of more than $1 billion and the third time in the past four years,
The sector employs 51,569 people, cracking the 50,000 barrier for the first time, and exports $8.7 billion across ICT, biotech and high tech manufacturing. However, it was ICT that shone, growing 15.9 per cent, or by $643 million year on year, the 15th TIN report found.
The Wellington region recorded the strongest revenue growth of 17.5 per cent while North Auckland and Otago also recorded double-digit growth.
Research and development spending also crossed a new threshold, exceeded $1 billion for the first time
ICT services company Datacom group led the TIN200 list and the EY Ten Companies to Watch list for the third year running with strong revenue growth, albeit at reduced profit, in 2019.
Xero was fourth after Fisher & Paykel Appliances and Fisher & Paykel Healthcare.
Video communications platform company 90 Seconds bagged the TIN Rocket Award 2019 for biggest jump in ranking, climbing 29 places.
“Through an overwhelming number of key metrics, our tech export sector is sending a strong message that it has the potential to become our country’s leading source of offshore income," said Greg Shanahan, founder and managing director of TIN.
Shanahan noted that the TIN Next100 list has outpaced the TIN100 in terms of growth, a sign that the local tech sector was not only made up of a stable group of large companies driving the sector, but is also developing a strong pipeline of emerging companies.
Ninety five ICT firms were in the TIN200 and with growth of 15.9 per cent accounted for well over half of the reported growth.
High tech manufacturing recorded 7.0 per cent growth and biotech 6 per cent.
Fintech remained a key growth sector, after a strong year of 26.9 per cent growth.
Over half of the staff employed by the sector and based in New Zealand, receiving over $4 billion in salaries at an average of more than $82,000 a year.
Offshore revenue reached a record $8.7 billion, up 11.3 per cent, with Australia and North America the two largest export markets, both growing by 9.7 per cent to contribute nearly half of of total TIN revenue.
Europe, however, topped in growth rate after an 18.5 per cent revenue surge.
A total of seven TIN200 companies received offshore investment with $326 million invested between them. Eight TIN200 companies were acquired by offshore interests during the year.
Almost 1,000 companies were covered in this year's survey to develop the TIN200 list.
