Cloud uptake key as MYOB ends ‘transformational’ year with strong double-digit growth

MYOB continues its battle for supremacy across the region's accounting and payroll solutions market by revealing lifting revenues...

MYOB continues its battle for supremacy across the region's accounting and payroll solutions market by revealing lifting revenue for the year to December 2014 by 16% to NZ$298m and delivering EBITDA of $144m, up 15%.

According to the company, this Australia and New Zealand growth was driven by the "rapid adoption of cloud solutions" from new and existing clients, the introduction of new solutions and strategic acquisitions to grow organisational reach.

Strong growth in client numbers saw MYOB pass a record client milestone at the end of 2014 with over 1.2 million businesses actively using MYOB SME solutions and more than 500,000 are now paying clients, with over 116,000 now cloud subscribers, also a record figure for MYOB.

“The transformation delivered in the MYOB business in under three years is an outstanding achievement," says Tim Reed, CEO, MYOB.

"I am immensely proud of what has been accomplished in a short period.

"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.”

Reed says MYOB is in a "strong financial position" as it grows its client base and looks ahead to 2015.

Key FY2014 highlights show strong double digit growth, 16% revenue growth and 15% EBITDA growth year-on-year with the company reporting 94% recurring revenue, and a 17% increase in operating expenditure to fund strategic growth initiatives.

The past twelve months also saw a "fast-paced" uptake in SME cloud solutions, with 67% of new MYOB registrations being cloud subscriptions in the quarter to December (versus 48% in the same quarter for 2013).

New products...

“In the last month we launched MYOB Advanced, our first cloud offering for the mid-range market, and are poised to take our first cloud product for accountants to market in the next few months," he adds.

MYOB Advanced is a cloud enterprise resource planning (ERP) solution that complements MYOB’s existing EXO solution, and expands MYOB’s suite of solutions for mid–sized businesses to three; MYOB Advanced, MYOB EXO and MYOB PayGlobal.

MYOB acquired PayGlobal Limited, a market leader in the provision of business, HR and payroll solutions to larger businesses, part way through 2014.

In the first half of 2015, in addition to launching MYOB’s first mid-market cloud product, Reed says MYOB will also launch ‘MYOB Portal’, a cloud product for accountants using MYOB Accountants Office and MYOB Accountants Enterprise.

Reed says the company also has plans to take its BankLink product to the cloud in the future so that accountants can leverage the same functionality in the cloud.

“These innovative new products and product enhancements strengthen our position as the only provider in Australia and New Zealand that caters to micro and small, through to medium and larger-sized enterprises," Reed adds.

"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.”