Reckon doubles revenue growth to 6% in 1H15

Australian accounting software provider Reckon doubled its revenue growth for the first half of the year to 6% on the back of strong international and cloud sales growth.

Revenue for the half-year ending in June grew to $54 million, but net profit edged down 1% to $9.3 million.

Accountant group revenue grew 6% to $24.2 million as the company completed a move to a subscription model rather than one-off sales. Subscription revenue increased 8% and grew to account for 91% of practice management revenue.

Business group revenue decreased 1% to $19.5 million but cloud revenue climbed 44% and made up 30% of core product revenue.

Reckon’s international group recorded revenue growth of 19% to $10.3 million, buoyed by the successful launch of the company’s Virtual Cabinet service in the US. The company also invested to build sales capacity in the UK.

“We are now reaping the benefits of moving to a subscription revenue model. The continued growth of our online business and powerful international expansion has contributed to our performance,” Reckon Group CEO Clive Rabie commented.

“We see large market opportunities for many aspects of our business which we are excited about pursuing over the coming years. This means continuing to invest in people, marketing and development in the short term to allow longer term revenue and growth.”

Reckon is gearing up to hold its annual industry event for accounting and bookkeeping professionals in Australia and New Zealand. Reckon 2015 will be held in Melbourne on 10–11 September, Auckland on 24–25 September and Sydney on 1–2 October.

The company will use the event to showcase its new and upcoming products and services, while industry experts will also share insights and provide training opportunities for attendees.

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