MYOB has smashed its first profit results post-IPO

MYOB CEO Tim Reed.

MYOB posted a 14% rise in half-year underlying profit to $40 million and reported strong growth in its cloud accounting software subscriptions.

The company says it had a record uptake of cloud solutions in the six months. Subscriptions hit 142,000 in June and then went to 150,000 in early August.

MYOB now has 528,000 paying users, up 10% and ahead of prospectus forecasts. Revenue is up 8% to $161 million and 94% of that is recurring.

The half year statutory result, including costs of relisting on the ASX, was a loss $65.04 million.

CEO Tim Reed says there was always going to be a lot of attention put on these first results post the IPO in May.

“I am delighted that not only have we delivered on expectations, we have exceeded them,” he says.

The company says it’s on track to pay a dividend for the 6 months to December.

It is forecasting full 2015 year profit of $84.8 million and $90.7 million for the following year.

This chart shows the growth of subscribers:

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