MYOB has posted a record half-year result in 1H 2014 on the back of the BankLink acquisition. For the six months to June 2014, MYOB reported revenue of A$140 million, up 21 percent on the previous first half. In the same period EBITDA was up 29 percent to A$70 million.
“This is our best performing half ever, driven by cloud and mobile solutions and integration of BankLink,” said MYOB CEO Tim Reed in a press call. MYOB had 86,000 paying subscribers for its cloud solutions and 63 percent of new clients in June chose cloud programs, Reed said. MYOB is still the leader in SMB accounting software, said Reed, “with usage of MYOB accounting software more than four times our nearest competitor”.
The total number of subscribers including MYOB Cover, BankLink and online accounting programs MYOB Essentials and MYOB AccountRight Live is more than 450,000. Xero announced on Friday it had more than 145,000 customers in Australia and 330,000 globally.
MYOB maintained its cash conversion rate at more than 87 percent, operating expenses increased by 11 percent and headcount jumped 10 percent to 1,146.
MYOB will increase its R&D spend to A$40 million this year as it builds its online accounting programs. Apart from its SMB range, MYOB is also working on a mid-market ERP based on Acumatica.