The tech sector was a great place to be invested in May.
During the month, the sector vastly outperformed the benchmark ASX 200 index with a very strong gain.
But which were the best ASX 200 tech stocks? Let's take a look at the top four for last month. They are as follows:
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Life360 Inc (ASX: 360)
The Life360 share price was on fire in May and raced 51% higher. Investors were scrambling to buy the location technology company's shares following the release of its first quarter update. For the three months ended 31 March, Life360 reported a 32% increase in revenue to US$103.6 million. This reflects a 37% jump in core subscription revenue to US$76.2 million for the three months. Another positive was its operating leverage, with Life360's adjusted EBITDA more than tripling to US$15.9 million. Looking ahead, Life360 has reaffirmed its guidance for FY 2025. It expects consolidated revenue of US$450 million to US$480 million and positive adjusted EBITDA of US$65 million to US$75 million.
TechnologyOne Ltd (ASX: TNE)
The TechnologyOne share price was on form and raced 33% higher during the month. This was driven by the release of the enterprise software provider's half year results. For the six months ended 31 March, TechnologyOne reported a 21% jump in annualised recurring revenue (ARR) to $511.1 million. This meant that the ASX 200 tech stock achieved its $500 million ARR target 18 months ahead of target. On the bottom line, TechnologyOne posted a 33% increase in profit before tax to $81.9 million for the half. It also upgraded its earnings guidance for the full year.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price had a strong month and rose 23%. This was despite there being no news out of the online furniture and homewares retailer. However, with the tech sector rebounding strongly from April's weakness, it wasn't surprising to see Temple & Webster charge higher. Especially given its very positive outlook, which is being underpinned by a structural shift to online shopping. The company has an estimated 2.9% share of its $17 billion market. This ASX 200 tech stock is now up 134% since this time last year.
Pro Medicus Ltd (ASX: PME)
The Pro Medicus share price wasn't far behind with a gain of 20% in May. A key driver of this was news that the health imaging technology company signed a $20 million, five-year contract with the University of Iowa Health (UI Health Care). It is Iowa's comprehensive academic health system. The deal will see the cloud-based Visage 7 Enterprise Imaging Platform implemented throughout UI Health Care. This will provide a unified diagnostic imaging platform. The ASX 200 tech stock's CEO, Dr Sam Hupert, said: "They join a long list of Visage 7 clients to opt for a fully cloud-based solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market."
