CEO Sam Allert breaks down Reckon’s 2023 full yr outcomes

Article by Sam Allert, Reckon CEO.

Reckon is proud to announce its full yr outcomes for 2023, with the corporate displaying strong progress throughout the board and a constant dedication to key areas of growth.

The Enterprise Group continues to generate robust cashflow by merchandise like Reckon One and Reckon Payroll, alongside robust performances from the Authorized Group – largely targeted on the US and UK authorized agency markets.

“2023 was one other robust yr for us, delivering to our plan of sustaining income progress within the extremely worthwhile and money producing Enterprise Group which then gives the pliability to put money into our flagship product, Reckon One, along with the excessive progress alternatives offered by our US and UK targeted Authorized Group.”

Key highlights from the 2023 full yr outcomes

  • $53m in income generated in 2023 with EBITDA of $20m and NPAT of $5m.
  • An Annual Dividend of two.5c absolutely franked was paid to buyers in September 2023.
  • Authorized Group subscription income stories progress of 17%.
  • Ongoing funding in cloud-based merchandise to underpin future enterprise progress.
  • Over 105k cloud customers on our SME merchandise.
  • 300k staff receives a commission yearly in Australia by way of Reckon merchandise.
  • Six of the world’s prime authorized corporations use our options.

Enterprise Group and Authorized Group drive constant income progress

Reckon continues its meant mission of investing within the Enterprise and Authorized Teams to generate income, develop our shopper bases, gasoline growth and increase investor worth.

“We now have a transparent plan to leverage the robust money circulation produced by our Enterprise Group to put money into our flagship cloud merchandise in each companies, notably the excessive progress alternative offered by the Authorized Group within the US and the UK.”

Authorized Group continues to capitalise on broad alternatives in UK and US markets

One of many strongest performances, with a 17% subscription income uptick, comes from Reckon’s Authorized Group, which operates primarily within the US and the UK markets.

Reckon’s Authorized Group contains new cloud merchandise comparable to BillingHQ and DataHQ, that are value-add options which improve a authorized agency’s legacy Observe Administration software program.

With the sheer measurement of those two markets (notably the US authorized agency market) and the standard and worth of the Authorized Group’s merchandise, We see a broad alternative for continued and constant progress. The truth is, up to now, Reckon serves 8 of the 25 largest legislation corporations within the US.

To pounce on this chance, Reckon will proceed to put money into creating these product traces alongside a heavy devotion to gross sales and advertising and marketing. The market is especially ripe for introducing cloud merchandise to a authorized market nonetheless closely reliant on desktop software program.

“The income progress within the Authorized Group highlights the energy of the Authorized Group’s core programs (scan, print and value restoration software program). The cloud platform merchandise BillingQ and DataQ present a value-add answer to Legislation corporations on prime of their legacy observe administration programs, and our funding in BillingQ and DataQ presents appreciable upside alternative for Reckon given the dimensions of the addressable market within the US and UK.”

Funding in cloud growth ramps up

R&D is in our highlight, with sufficient within the coffers to assist vigorous cloud growth. Because the gradual fading of desktop merchandise continues the world over, Reckon is firmly positioning themselves as a prime tier cloud options supplier.

To attain this transition, we’re funneling income into each R&D and migration journeys throughout all product traces and Teams. The first migration efforts are targeted on upgrading clients from Reckon Accounts Desktop and Reckon Accounts Hosted to Reckon One and different cell merchandise.

“The robust efficiency within the enterprise allowed us to proceed to put money into Reckon One and cell accounting and payroll options to facilitate the migration of shoppers from our legacy platforms and to entice new clients.”

The event of Reckon One and the migration of shoppers from our legacy merchandise stays a multi-year journey, however we’re targeted, and it’s underway. Reckon Payroll was a spotlight of the yr as we transitioned customers from some legacy payroll options to our new Reckon One primarily based payroll product.

Cloud person uptake and progress continues

Our constructing of a strong cloud-based person profile continues because the motion away from desktop options marches on. Reckon has now clocked over 105k cloud customers on our SME merchandise. With cloud a major function of future software program options, Reckon is firming up our stance on this area.

“Cloud income and person progress within the Enterprise Group stays a spotlight in a aggressive market. We proceed to search for alternatives to extend our shopper base in addition to the potential pockets share from clients with add-on companions, together with companions in monetary providers and funds processing.”

Shareholders in good fingers as dividends proceed and stability endures

Our shareholders proceed to profit from Reckon’s success, with a 2.5c absolutely franked dividend paid in September 2023.

“With our historical past of robust monetary administration and shareholder returns, our intention stays to pay one dividend yearly in September.”

Shareholders might be buoyed by our robust outcomes and clear path to progress and income, with our funding within the Authorized Group and the continued growth of Reckon One presenting one of the best alternative to enhance our valuation and shareholder return.

Sam Allert, Reckon CEO


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