Slide 1: Investor Presentation
Investor Presentation For the year ended 31 December 2023 To be read in conjunction with Appendix 4E and Accounts
Slide 2: Disclaimer
Disclaimer This information contained within this document is in summary form and does not purport to be complete. It should be read in conjunction with Reckon Limited’s periodic reporting and other announcements made to the Australian Securities Exchange. Information provided is current at the date
Slide 3: Overview
Overview Reckon Limited (ASX: RKN) is a software-as-a-service (SaaS) company providing cloud-based technology solutions to customers including SMEs and legal firms. Investment highlights Strong earnings profile - $53m in revenue generated in 2023 with EBITDA of $20m and NPAT of $5m Net debt of $2.8M
Slide 4: Corporate overview
Corporate overview Capital Structure Board of directors ASX code: RKN Shares on issue: 113.3m Clive Rabie Market capitalisation: $69m NON-EXECUTIVE CHAIRMAN Share price high – low post special $0.40 to $0.66 dividend: Net debt: $2.8m Greg Wilkinson FOUNDER & NON-EXECUTIVE DIRECTOR Major shareholders
Slide 5: Our focus is on two large and distinct markets
Our focus is on two large and distinct markets SMALL BUSINESS Accounting and Payroll solutions for SMEs Revenue of $41.7m and $21.5m EBITDA in FY23 Total addressable market 3 million small businesses across Australia and New Zealand LEGAL Practice Management and Workflow solutions for Legal firms Re
Slide 6: Financial Results – Full Year 2023
Financial Results – Full Year 2023 * REVENUE ARR EBITDA $ 53 $ 49 $ 20 million million million +4% over PcP +4% over PcP +10% over PcP NPAT DEVELOPMENT INVESTMENT DIVIDEND PAID $ 5 $ 14 2.5 million million cents +36% over PcP per share fully franked *Continuing operations only RECKON INVESTOR PRESEN
Slide 7: Cloud revenue growth of 5%
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Cloud revenue growth of 5% Servicing start ups, gig-economy, small and Small Business Cloud User* Growth CLOUD medium sized businesses with accounting, USERS REVENUE payroll, and business management tools 120K FY23 user growth affected $25m $24.1m by discont
Slide 8: Transition to Reckon One codebase underway
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Transition to Reckon One codebase underway Increased focused on the transition to Ongoing product enhancements creating the Reckon One codebase now underway more valuable solutions for SME’s and since the completion of Single Touch employees Payroll 2.0 upgr
Slide 9: Customer case study: Stitchery & Co.
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Customer case study: Stitchery & Co. It’s the accountant’s choice when they go into business themselves. The challenge: Tatianya Cowan came from an accounting background before diving into business herself and setting up Stitchery & Co, - a sewing business a
Slide 10: Continued focus on employee engagement
Continued focus on employee engagement Employee Engagement Stats 100 % 88 % 87 % 95 % COMPANY CULTURE ENGAGEMENT RECOMMENDING RECKON STRATEGY 100% respondents recommend the 88% of respondents are engaged 87% respondents would 95% respondents believe in the company as a great place to work (Industry
Slide 11: Growth business in large US and global markets
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Growth business in large US and global markets Subscription revenue growth Servicing Legal firms with workflows through scanning $10.8M & printing, billing and collections, cost recovery and analytics solutions Subscription revenue growth of 17% for F
Slide 12: Upgrade to core product suite and investment in new cloud solutions
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Upgrade to core product suite and investment in new cloud solutions providing growth opportunity in large US Legal market Core products upgraded to take advantage of Newer platform solutions can be cross sold into increased market interest and opportu
Slide 13: nQ Zebraworks customer case study: Worden Thane
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS nQ Zebraworks customer case study: Worden Thane Superior automation to streamline the billing process. The challenge: Dawn Donham, Legal Administrator at Worden Thane (a real estate, business, and litigation firm), was faced daily with highly manual a
Slide 14: Financial Highlights
Financial Highlights RECKON INVESTOR PRESENTATION FY2023 14
Slide 15: Group financial performance and cash flow
Group financial performance and cash flow (Continuing operations) FY23 FY22 GROWTH FY23 FY22 $M $M % $M $M Revenue 53.4 51.2 +4% Operating Cashflow (before development) Continuing operations 19.1 19.8 Discontinued operations - 7.0 EBITDA 19.7 18.0 +10% Development Spend Continuing operations (14.4)
Slide 16: Business Group Financials
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Business Group Financials A subscription business with consistently strong cloud growth FY23 FY22 Financial performance Revenue $M $M GROWTH Revenue CLOUD SUBSCRIPTION 24.1 23.0 5% • Consistently strong cloud revenue growth DESKTOP SUBSCRIPTION 14.1 14.5 -3%
Slide 17: Legal Group Financials
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Legal Group Financials Growing subscription revenue and a top tier customer base Financial highlights Revenue FY23 FY22 CONSTANT CURRENCY $M $M GROWTH GROWTH Revenue SUBSCRIPTION 10.8 9.2 +17% +12% • Strong subscription growth of 17% UPFRONT AND SERVI
Slide 18: Summary
Summary A software as a service (Saas) company with two clearly defined businesses and opportunities Strong consistent financial results - $53M in Revenue, $20M in EBITDA, and NPAT of $5M for full year 2023. Executing on plan to create valuation improvement and shareholder return A clean Balance She
Slide 19: Questions
Questions RECKON INVESTOR PRESENTATION FY2023 19
Slide 20: Resources
Resources Website reckon.com About us reckon.com/au/about-us Investors reckon.com/au/investors Media reckon.com/au/media RECKON INVESTOR PRESENTATION FY2023 20