MYOB grabs top spot for new cloud-accounting customers

Accounting software company MYOB has released new figures showing it is now the fastest growing cloud-accounting business in Australia and New Zealand with 205,000 new subscriptions added in the 12 months to September 2018. It marks a remarkable transformation for the company, which remains on track to pass 1 million online subscriptions in 2020.

MYOB now has more than 550,000 online subscribers, up 60 percent year-on-year. It grabbed top spot for new subscribers from its nearest competitor, making it the market leader for online accounting and payroll in Australasia.

The numbers were released as part of MYOB’s investor day event that also reaffirmed medium term guidance for ongoing high single-digit organic revenue growth, an underlying EBITDA margin of more than 45 percent from 2022 and free cash flow above $200m in the same year.

The company’s recent half year results saw year-on-year revenue climb 7 percent to $218 million and underlying EBITDA up 3 per cent to AU$92.7 million for the 6-month period ending 30 June 2018.

The results also highlighted continued strong growth in MYOB’s  Enterprise Solutions and Payments segments, contributing 17 per cent to total group revenues.

“This is a very significant result for us. It underscores the success of our strategy and the value our customers place on of the innovative services we provide,” says MYOB CEO Tim Reed.

“MYOB is now the preferred partner for small-to-medium sized businesses and accountants taking up cloud-based, business management software. We’re focused on delivering the tools they need to succeed in the future.

“This supports our decision to bring forward investment in the industry-leading MYOB Platform. It will deliver a new level of efficiency for business owners and accountants,  delivering more profitability and productivity.

“MYOB is experiencing significant growth in subscribers, including migrations from our non-paying subscriber base, as people move onto our higher value and feature-rich cloud-based services. We’re also seeing increased customer retention and an increase in average revenue per paying user.”

One key recent innovation was the release of a new advisory feature for accountants called MYOB Advisor, which uses Artificial Intelligence (AI) and Natural Language Generation (NLG) alongside financial data visualisations, to enable accountants and advisers to start a conversation with their clients and support their clients’ business needs and financial position.

Other updates included the first product demonstration of the end-to-end compliance workflows in the MYOB Platform, and the acceleration of the online Corporate Compliance and Document Management modules - which we’re now confident will be available to clients in 2019.

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About MYOB

MYOB is a leading provider of online business management solutions. MYOB makes business life easier for approximately 1.2 million businesses across New Zealand and Australia by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across three core segments – Clients and Partners (business solutions to SMEs and Advisers); Enterprise Solutions (larger businesses) and Payment Solutions. We also provide ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. We are committed to ongoing innovation, particularly through our Connected Practice Strategy and through the development of the MYOB Platform. For more information visit our website or follow @MYOB on Twitter.

[1] Xero added 192,000 in the 12 months to 30 September 2018, up 24 percent.