The tech sector was a great place for investors to be in May.
During the month, a number of ASX 200 tech stocks raced higher and delivered big returns for their shareholders.
Three such shares are listed below. Here's why they smashed the market last month:
Aristocrat Leisure Limited (ASX: ALL)
The Aristocrat Leisure share price was on form and charged 12.6% higher in May.
Investors were scrambling to buy the gaming technology company's shares after the release of an impressive half-year result. Aristocrat reported a 6.1% increase in revenue to $3,269.6 million and a 16.8% jump in net profit after tax to $723.3 million. The latter was significantly better than the market was expecting.
In addition, the company boosted its dividend, announced an additional $350 million share buyback, and revealed that it was looking at potentially divesting its digital gaming operations.
Life360 Inc (ASX: 360)
The Life360 share price was a strong performer again last month and rose 11.1%.
This was driven by the release of a trading update which revealed that the location technology company had a record first quarter (and later backed up by the actual release).
Life360's global Monthly Active Users (MAU) were 66.4 million at the end of the first quarter. This was an increase of 4.9 million since the end of the fourth quarter and represents a record for a first quarter. This led to the ASX 200 tech stock achieving positive adjusted EBITDA of US$4.3 million for the three months, which was up from US$0.5 million.
Life360 also suggested that a dual listing on Wall Street could be coming soon.
TechnologyOne Ltd (ASX: TNE)
The TechnologyOne share price rose 9.4% during the month of May.
The catalyst for this was the release of the enterprise software provider's half year results. TechnologyOne posted a 16% increase in revenue to $244.8 million, a 21% lift in annual recurring revenue (ARR) to $423.6 million, and a 17% jump in profit before tax to $61.5 million.
The good news is that management spoke positively about the future and believes it is on track to surpass its $500 million ARR target by FY 2025 and then continue its strong growth. The ASX 200 tech stock's CEO, Ed Chung, said: "We are on track to surpass total ARR of $500m+ by FY25, from our current base of $424m. We will continue to invest for the long-term in R&D to build platforms for growth to continue to double in size every 5 years."
