Thursday, 27 August 2015 12:30

Cloud drives MYOB to record subscription uptake


Cloud accounting software provider MYOB (ASX:MYO) is heralding a record uptake of its cloud solutions by small businesses and strong growth in recurring revenues in the six months to the end of June, with the release of its first financials after starting life as a public company.

The company – which listed on the ASX in May in one of Australia’s largest ever technology IPOs - today released its results for the six months to the end of June, and says cloud subscription growth expectations have been exceeded, with SME cloud subscriptions of 142,000 in June, and rising to 150,000 early this month.

CEO Tim Reed says MYOB has invested 13% to 16% of revenue to drive innovation in the cloud, with the company continuing its transformation from long-standing software provider to a provider of innovative cloud accounting solutions for micro to mid-tier businesses in the first half of 2015.

In its first report since listing, MYOB has reported an EBITDA of $72 million, up 14% year on year and revenue of $161 million, up 8% year on year.  

The company also reports that 94% of 1st half 2015 revenues are of a recurring nature, with the strong recurring revenue growth achieved by 10% growth in its paying user base, high retention rates driven by growth in the number of cloud users and 5% growth in SME ARPU.

“We have invested over $115 million in research and development in the past three years and the R&D strategy we are executing on is proving extremely successful as we continue to make business life easier for Australian and New Zealand businesses,” Reed said.

“We are investing 13 to 16 percent 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.”

Commenting on today’s half year results report, Reed, said “There was always going to be a lot of attention put on these first results post our successful IPO and I am delighted that not only have we delivered on expectations, we have exceeded them.”

Reed cites the launch of MYOB Advanced, what he says is the first cloud-based ERP solution developed in Australasia, and the successful launch of smart bills in MYOB AccountRight Live as some of the highlights of the first six months trading as a listed company.

Reed says MYOB also successfully introduced MYOB Portal, a cloud-based solution for accountants and the first product “in the journey to re-imagine practice solutions MYOB Accountants Office and MYOB Accountants Enterprise in the cloud.”

“MYOB portal is aimed at delivering significant benefits in online collaboration to make business life easier for accountants and their clients.”

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Peter Dinham

Peter Dinham - an iTWire treasure is a mentor and coach who volunteers also a writer and much valued founding partner of iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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