Cloud uptake has helped accounting software provider MYOB lift its revenue for the full year to December 2013 by 13 percent to AU$246.6 million, and EBITDA up 14 percent to AU$120.9 million.
MYOB, which supports approximately 1.2 million businesses and 40,000-plus accountants in Australia and New Zealand, reported that the shift from perpetual licences to a subscription model helped recurring revenue increase from 88 percent to 92 percent of total revenue. Also, the uptake of cloud usage by subscription customers increased to 22 percent, up from 7 percent on the number that was reported last year. Additionally, 52 percent of all new product registrations in 2013 were for cloud accounting — more than double of the previous year.
The company also attributed its continued investment in cloud to the strong growth, highlighting its acquisition of BankLink from Media Transfer Service for NZ$136 million during mid-2013.
CEO Tim Reed said the strong full-year result was driven by the company's strength across all accounting platforms and client groups, coupled with a healthy contribution from the BankLink business acquired in mid-2013.
"The evolving needs of small and medium businesses have driven a significant increase in sales of our cloud accounting solutions, which now account for half of all new product registrations. That has grown significantly in the past year, up from 25 percent one year ago," he said.
These results arrive following the launch of a series of cloud solutions. This will include the arrival of the MYOB Essentials range, replacing its current LiveAccounts product in early April, and the release of its mobile payments solution, MYOB PayDirect.
Reed said that delivering these new cloud technology products will meet the needs of its different customers, particularly as the company commits to further increasing spend on R&D in the next fiscal year, after having already increased spend by 20 percent in FY2013 to AU$36 million.
"That is why we pride ourselves on offering a choice of cloud solutions, starting with MYOB Essentials, which is great for those new to accounting software, and MYOB AccountRight, which makes it easy for businesses to move from the desktop to the cloud. We have also invested in innovative mobile solutions, and are confident all our solutions offer better value than alternatives," Reed said.
"I believe it is this combination of making it easy, enabling on-the-go business, and delivering better value that has led to such a rapid adoption of our online accounting solutions by existing clients."