MYOB just released its results for the year to December 31.
They show a NPAT loss of $21.3 million, which is a deterioration on the $14.1 million loss posted in 2013. However, revenue was up 16% to $287 million and MYOB’s EBITDA for the period was up 15% year-on-year to $138 million.
The company has also invested $9.6 million on building and launching new products and spent $9.9 million on its sales force and its PayDirect product.
Here are the numbers.
Company CEO Tim Reed said the revenue growth has come from building out its cloud-accounting products. He said the company now has more than 116,000 cloud subscribers.
“This transformation delivered in the MYOB business in under three years is an outstanding achievement,” he said.
“We continue to expand our cloud solutions across all areas of our business with 67% of new MYOB SME clients choosing our innovative cloud solutions in Q4 2014.
“With over $100 million spent on R&D for the Australian & New Zealand market alone in the last three years, we are in a great position to deliver further innovation that will drive our growth in the years ahead.”
This chart from the investor presentation shows transitioning customers to the cloud materially changes their lifetime value. It explains why accounting software companies like MYOB are throwing all the resources they can at building out solutions and securing cloud market share.