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MYOB says rapid adoption of cloud solutions from new and existing clients is behind a 16 per cent spike in revenue and a 15 per cent jump in EBITDA.
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MYOB announces massive growth, flags new accountants' portal
26 February 2015
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The software provider also touted the introduction of new innovative solutions and strategic acquisitions to grow organisational reach as vital to the company’s strong performance.
The 2014 results show revenue reached $287 million for the year while EBITDA was $138 million.
MYOB’s chief executive officer Tim Reed said he was pleased with the result and described the transformation delivered in the MYOB business over the last three years as an outstanding achievement.
“I am immensely proud of what has been accomplished in a short period. We continue to expand our cloud solutions across all areas of our business with 67 per cent of new MYOB SME clients choosing our innovative cloud solutions in Q4 2014.”
In a statement, the software provider flagged further developments it says will boost the company further in 2015.
“MYOB will launch ‘MYOB Portal’, a cloud product for accountants using MYOB Accountants Office and MYOB Accountants Enterprise,” the statement read.
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“MYOB Portal is aimed at delivering significant benefits in online collaboration to make their business life easier for accountants and their clients. The organisation also has plans to take the highly regarded BankLink product to the cloud in the future so that accountants can leverage the same functionality they love with all the benefits of cloud.”
The financial results come as speculation increases of an MYOB IPO in coming months.
Key 2013/2014 highlights
- Strong double-digit growth, 16 per cent revenue growth and 15 per cent EBITDA growth year-on-year
- 94 per cent recurring revenue
- 17 per cent increase in operating expenditure to fund strategic growth initiatives
- Fast-paced uptake in SME cloud solutions, with 67 per cent of new MYOB registrations being cloud subscriptions in the quarter to December (versus 48 per cent in the same quarter for 2013)
- Strong growth in paying users, passing a milestone of 500,000 in December 2014, showing strong conversion from the 1.2 million active users into paying users; the SME subscriber base represents 95 per cent of recurring revenue
- R&D investment of $42 million focused only on Australia & New Zealand to drive innovation across all business segments
- MYOB maintains a very healthy cash outlook. Operating cash flow is up 19 per cent driven by 86 per cent operating cash conversion, and $118.5 million operating cash to cover $51.1 million of interest payments
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