MYOB exceeds financial forecast with record cloud subscription growth Compelling financial results, ongoing momentum and 94% recurring revenue model underpin outlook
Key 1H 2015 Highlights:
• Record uptake of cloud solutions in 1H bringing SME cloud subscriptions to 142,000 in June 2015, achieved 150,000 in early August 2015;
• 528,000 paying users, up 10 per cent year on year and ahead of prospectus forecast;
• 94% recurring revenue;
• Pro forma Revenue of $161M, up 8 per cent year on year;
• Pro forma EBITDA of $72M, up 14 per cent year on year;
• Pro forma NPATA of $40M, up 14 per cent year on year;
• Management reaffirms its FY 2015 and 12 month June 2016 pro forma prospectus forecasts;
• MYOB awarded the BRW Most Innovative Large Company Award and placed second in the top 50 BRW’s Most Innovative Companies’ award.
Leading cloud accounting provider, MYOB Group Limited (ASX:MYO), has successfully delivered on paying user and cloud subscription growth expectations, reporting a record uptake of cloud solutions amongst SMEs in the 6 months to June 2015, firmly cementing the company’s reputation as a leader in the cloud accounting and payroll space.
MYOB has today reported pro forma EBITDA of $72M, up 14 per cent year on year and revenue of $161M, up 8 per cent year on year. In addition, 94 per cent of 1H 2015 revenues are of a recurring nature. The strong recurring revenue growth has been achieved by 10 per cent growth in the paying user base, high retention rates driven by growth in the number of cloud users and 5 per cent growth in SME ARPU.
The figures have been shared today in the company’s 2015 Half Year Results; the first since MYOB listed on the ASX in Australia’s largest ever technology IPO in May.
CEO Tim 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”.
The company has continued 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. Among the highlights are the launch of MYOB Advanced, the first cloud-based ERP solution developed in Australasia, and the successful launch of MYOB smart bills in MYOB AccountRight Live.
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.
MYOB smart bills and MYOB Portal were cited as just some of the reasons that MYOB was awarded the BRW ‘Most Innovative Large Company’ Award and placed second in the top 50 BRW’s Most Innovative Companies’ award earlier this month (BRW Most Innovative Companies List 2015).
“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,” said Mr Reed.
“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.
“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,” he added.
