Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Subscription revenue drives strong Reckon results

Reckon has today announced the firm's half-year financial results, revealing that revenue growth doubled from just 3 per cent in 2014 to 6 per cent for the half-year 2015.

News Staff Reporter 11 August 2015
— 1 minute read

Reckon also announced a 5 per cent growth in EBITDA for the same period, and EPS growth of 8 per cent.

Advertisement
Advertisement

Speaking to AccountantsDaily, Daniel Rabie, strategic director at Reckon, said the results were very pleasing and highlighted strong growth in subscription revenue as a key victory.

“We have tried to implement a lot of strategies in regards to growing online users and moving to a subscription business and we did both of those and got good revenue growth,” Mr Rabie said,

“We have moved about 90 per cent of our practice management customers to subscription and about 70 per cent of our core business product and about 77 per cent of our international group are on subscription products too. Overall we were around 50 per cent of our businesses last year so it’s a huge achievement.”

Mr Rabie said strong subscription revenue is important for the long-term future of the business since it provides a platform for continued development.

“It’s safer revenue so we can continue to invest and develop our products for our customers,” he said.

Mr Rabie added that strong growth in international business had also been especially pleasing.

“Traditionally for Australian companies to get large traction overseas, from a software perspective, has never been that easy. We are starting to see a lot of traction in our international business, especially in our document management side of things – the UK specifically, but also the US.

“We already have about 2,000 accounting firms in the UK signed up to our virtual cabinet platform and we are going to start pushing other products through that channel in the future – for example, Reckon One."

 

Subscription revenue drives strong Reckon results
image intro
accountantsdaily logo

 

Are you thinking of expanding your offering into SMSFs to grow your client base? Become a pro at SMSF fundamentals and make your clients bulletproof with the SMSF Foundations course. Learn directly from Aaron Dunn from Smarter SMSF as he deep-dives into the fundamentals you need to know to successfully undertake your work as an SMSF practitioner. Earn up to 21 CPD hours! Learn more

News