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MYOB today announced the firm's first-half of 2015 financial results, with strong growth in SME solutions income despite recurring revenue falling below the recent prospectus forecast.
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MYOB delivers first post-IPO results
27 August 2015
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The results were largely positive, with SME solutions revenue up 12 per cent on first-half of 2014 results and total revenue up 8 per cent. However, one key figure did fall short of prospectus expectations.
Group recurring revenue as a percentage of total income was 1 per cent below the prospectus forecast, at 94 per cent. However, despite this lower than forecast result, recurring revenue was still up significantly, showing 10 per cent growth.
MYOB chief executive Tim Reed said he was pleased with the firm's performance, acknowledging “there was always going to be” a lot of attention put on the first post-IPO results.
“I am delighted that not only have we delivered on expectations, we have exceeded them,” he said.
Mr Reed said strong investment in research and development over the past three years, as well as the R&D strategy employed, is proving extremely successful.
“We are investing 13 to 16 per cent of our revenue to drive innovation in the cloud. For instance, we plan to take the very popular BankLink product to the cloud in the future so that accountants can leverage the same functionality they love with all the benefits of working online," he said.
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“We are already at the centre of a connected SME/Accountant ecosystem and we want to continue to make that ecosystem one that makes business life easier for all our clients,” Mr Reed added.
According to MYOB, record uptake of cloud solutions in the first half of 2015 took SME cloud subscriptions to 142,000 in June (with 150,000 achieved in early August 2015), while the number of total paying users was up 10 per cent year on year to 528,000.
Pro forma revenue was $161 million, up 8 per cent year-on-year; pro forma EBITDA was $72 million, up 14 per cent year-on-year; and pro forma NPATA was $40 million, up 14 per cent year-on-year.
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