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