Reckon Limited · ASX:RKN
Reckon — H1 2019 Earnings Presentation
17 slides from Reckon's earnings presentation, Jun 30, 2019
Slide 1: Results Presentation
Results Presentation For the six months ended 30 June 2019 To be read in conjunction with Appendix 4D and Accounts
Slide 2: Sam Allert, Chris Hagglund
Sam Allert Chris Hagglund RECKON CEO RECKON CFO 2
Slide 3: Core areas of the business
Core areas of the business BUSINESS PRACTICE MANAGEMENT PRACTICE MANAGEMENT GROUP - ACCOUNTANT GROUP - LEGAL GROUP Scan workflow, print An ecosystem for A platform for and cost recovery small businesses accountants solutions for legal firms We provide accounting software to Market leaders with our A
Slide 4: Our Highlights
Our Highlights Business Group Payroll APS Legal Cashflow Cloud Growth Focus Stabilisation Growth Improvement 21% increase in Launch of new Achieving stabilisation 11% revenue increase $7m reduction in net debt subscriptions, reaching payroll app of APS after period of from additional growth in 62,00
Slide 5: Results summary
Results summary Revenue EBITDA NPAT 39.2 $ $17.1 $ 5.3 million million million -1.8% over PcP +4.3% over PcP +2.1% over PcP 5
Slide 6: Business Group highlights
Business Group highlights Over 62k cloud users (21% annualised user growth). Online user growth USERS 11% cloud revenue growth over HY18. 65k 62K 46% of available revenue is now cloud. 60k 55k STP Mobile App launched late May ‘19, already at 19k users; with 32k employees created in this app. 50k 45k
Slide 7: Practice Management Accountant Group highlights
Practice Management Accountant Group highlights Business stabilised following aborted sale in 2018. Reckon APS seat growth Impressive customer list maintained. 83k 82k 81k New subscription revenue showing signs of improving but 80k still impacted by lag effect from aborted sale process. Substantial
Slide 8: Practice Management - Legal
Practice Management - Legal WorkFlow expert in three key areas: Scan product showing strong potential. • Advanced Uniform Scanning • Print Management Next generation product launched and is now • Cost Recovery being rolled out. Developed Channel Sales Network, which now Transition from upfront purch
Slide 9: Financial performance
Financial performance H1 FY19 H1 FY18 GROWTH $M $M % Revenue 39.2 39.9 -1.8% Overheads 22.1 23.5* -6.1% EBITDA 17.1 16.4* +4.3% NPAT 5.3 5.2* +2.1% * Results are net of $0.9 million of transaction costs. 9
Slide 10: Business Group Financials
Business Group Financials Subscription business with strong online growth. Revenue H1 FY19 H1 FY18 Financial performance $M $M GROWTH • Revenue CLOUD SUBSCRIPTION 7.8 7.0 11% • Cloud revenue growth gaining momentum (11%) • ARPU continues to be impacted by fast growing DESKTOP SUBSCRIPTION 7.6 8.0 -5
Slide 11: Practice Management Accountant Group Financials
Practice Management Accountant Group Financials Stable subscription revenue and an impressive customer base. Revenue H1 FY19 H2 FY18 H1 FY18 Financial highlights $M $M $M • Revenue SUBSCRIPTION 11.4 11.4 11.9 • Business stabilised following aborted sale. UPFRONT AND SERVICE 0.3 0.2 0.3 • New busines
Slide 12: Practice Management Legal Group Financials
Practice Management Legal Group Financials Impressive customer base with opportunity to grow scan and print markets. Revenue H1 FY19 H1 FY18 Financial highlights $M $M GROWTH • Revenue SUBSCRIPTION 4.4 4.2 4% • Strong scan growth. UPFRONT AND SERVICE 1.5 1.2 35% • Transition to subscription is well
Slide 13: Cashflow highlights Development spend
Cashflow highlights Development spend H1 FY19 H1 FY18 25 $M $M 22.8 20 19.6 OPERATING CASHFLOW 15.3 15.4 18.3 16.8 17.2 DEVELOPMENT SPEND (7.9) (7.5) 14.9 15 14.3 NZ R&D REBATE - 0.3 12.4 12.1 A$m DEBT REPAID (7.5) (7.0) 10.7 7.9 10 LEASE PAYMENTS (AASB 16) (0.9) - 5 Development spend is 20% of reve
Slide 14: Outlook
Outlook 14
Slide 15: Continue our Plan - A Focus on Growth
Continue our Plan - A Focus on Growth BUSINESS PRACTICE MANAGEMENT PRACTICE MANAGEMENT GROUP - ACCOUNTANT GROUP - LEGAL GROUP Scan workflow, print An ecosystem for A platform for and cost recovery small businesses accountants solutions for legal firms We provide accounting software to Market leaders
Slide 16: Q&A
Q&A 16
Slide 17: Resources
Resources Website About us Investors Media reckon.com reckon.com/au/about-us reckon.com/au/investors reckon.com/au/media