MYOB claims that it is now the fastest growing cloud accounting business across Australia and New Zealand, after taking on 205,000 new subscriptions in just 12 months.
“This is a very significant result for us. It underscores the success of our strategy and the value our customers place on of the innovative services we provide,” says MYOB CEO Tim Reed.
The company has more than 550,000 online subscribers – a 60% year-on-year increase, the company says.
MYOB released the figures as part of its ‘investor day’ event. The event provided a look into the company’s internal revenue and operational numbers.
According to MYOB, the numbers “reaffirmed medium term guidance for ongoing high single-digit organic revenue growth, an underlying EBITDA margin of more than 45% from 2022 and free cash flow above $200 million in the same year”.
The company’s year-on-year revenue rose 7% to $217 million. Underlying EBITDA up 3 per cent to AU$92.7 million for the 6-month period ending 30 June 2018.
“MYOB is experiencing significant growth in subscribers, including migrations from our non-paying subscriber base, as people move onto our higher value and feature-rich cloud-based services. We’re also seeing increased customer retention and an increase in average revenue per paying user,” explains Reed.
MYOB says its Enterprise Solutions and Payments segments are also doing well. They contribute 17% to total group revenues.
“MYOB is now the preferred partner for small-to-medium sized businesses and accountants taking up cloud-based, business management software. We’re focused on delivering the tools they need to succeed in the future,” says Reed.
“This supports our decision to bring forward investment in the industry-leading MYOB Platform. It will deliver a new level of efficiency for business owners and accountants, delivering more profitability and productivity.
MYOB now claims it is the ‘market leader’ for online accounting and payroll in Australasia.
The company has also set a target of signing up one million online subscribers by the year 2020.
MYOB has recently launched a new feature called MYOB Advisor, which uses Artificial Intelligence (AI) and Natural Language Generation (NLG) alongside financial data visualisations, to enable accountants and advisers to start a conversation with their clients and support their clients’ business needs and financial position.
The company has also updated its MYOB Platform to include end-to-end compliance workflows. The company has accelerated its online Corporate Compliance and Document Management Modules, which are expected to be available to customers next year.