Slide 1: Investor Presentation for the year ended 31 December 2024
Investor For personal use only Presentation For the year ended 31 December 2024 To be read in conjunction with Appendix 4E and Accounts
Slide 2: Disclaimer
Disclaimer The 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. For personal use only Information provided i
Slide 3: Overview and Investment highlights
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 - $54M in revenue generated For personal use only in 2024 with EBITDA of $20M and NPAT of
Slide 4: Corporate overview
Corporate overview Capital Structure Board of directors ASX code: RKN Shares on issue: 113.3M Clive Rabie Market capitalisation: $64M NON-EXECUTIVE CHAIRMAN For personal use only Share price – low to high $0.495 to $0.67 Greg Wilkinson FOUNDER & NON-EXECUTIVE DIRECTOR Major shareholders Microequitie
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 $41.8M and $21.3M EBITDA in FY24 For personal use only Total addressable market 3 million+ small businesses across Australia and New Zealand LEGAL Billing and Document Workflow for lega
Slide 6: Financial Results – Full Year 2024
Financial Results – Full Year 2024 REVENUE ARR* EBITDA $ 54 $ 54 $ 20 For personal use only million million million +1% over PcP +5% over PcP +2% over PcP NPAT DEVELOPMENT INVESTMENT DIVIDEND $ 4 $ 14 2.5 million million cents per share fully franked *Note: ARR excludes installation revenue in the L
Slide 7: Cloud revenue growth of 7%
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Cloud revenue growth of 7% CLOUD Small Business Cloud User* Growth REVENUE CLOUD Servicing start ups, gig-economy, USERS $26.1M small and medium sized businesses 120K $25M with accounting, payroll, and business FY23 user growth affected by 111K management to
Slide 8: Transition to Reckon One codebase
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Transition to Reckon One codebase Increased focus on the transition to the Reckon One codebase Journey to Reckon One expands options for the business and provides potential value creation for Reckon* 7% cloud revenue growth and 5% cloud user growth 700 Deskt
Slide 9: Acquisition of Cashflow Manager Business
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Acquisition of Cashflow Manager Business Strategic acquisition of Cashflow Manager Expected to contribute $6M in revenue, $3M in For personal use only Business and clients EBITDA and $1M in NPAT in 2025 20,000 SME clients and 1,000 accounting and Plan to con
Slide 10: Customer case study: Michael Fox Arts Accountant & Valuer
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Customer case study: Michael Fox Arts Accountant & Valuer Make your clients’ accounting simple with intuitive payroll software and keep them compliant. For personal use only The challenge: Michael’s challenge in making sure his clients are well-cared for is
Slide 11: Continued focus on employee engagement
Continued focus on employee engagement Very low staff turnover of less than 10%. Great spread of experience and new ideas with good tenure split. Tenure Summary: 1-5 YEARS - 45% 5-10 YEARS - 24% 10+ YEARS - 31% 94 96 OF EMPLOYEES AGREE THAT JUSTICE % % For personal use only WE ARE A GREAT PLACE TO M
Slide 12: Growth business in large US and global markets
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Growth business in large US and global markets Servicing Legal firms with workflows through scanning Subscription revenue growth For personal use only & printing, billing and collections, cost recovery and $11.4M analytics solutions $10.8M Our workflo
Slide 13: Document Workflows and Billing Workflows
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Servicing Legal firms with our Queues workflow engine in two product families - Document Workflows and Billing Workflows Document Workflows streamlines digital Ongoing investment in cloud-based Billing Workflows, transformation with scanning, digital
Slide 14: Client Testimonials for BillingQ
PRACTICE MANAGEMENT & WORKFLOW FOR LEGAL FIRMS Client Testimonials for BillingQ Integrated Cloud Solutions and Streamlining Billing Processes and Efficient Workflows Enhancing Efficiency For personal use only “After a month of implementation our accountant “BillingQ has made our accountants’ and att
Slide 15: Financial Highlights
For personal use only Financial Highlights RECKON INVESTOR PRESENTATION FY 2024 15
Slide 16: Group financial performance and cash flow
Group financial performance and cash flow FY24 FY23 GROWTH FY24 FY23 $M $M % $M $M Revenue 54.1 53.4 +1% Operating Cashflow 17.9 19.1** (before development) EBITDA 20.2 19.7 +2% Development Spend (14.4) (14.4) For personal use only Depreciation and Amortisation (15.7) (14.4) Dividend Paid (2.8) (2.8
Slide 17: Business Group Financials
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Business Group Financials A subscription business with consistently strong online growth FY24 FY23 Financial performance Revenue $M $M GROWTH Revenue CLOUD SUBSCRIPTION 26.1 24.3 7% • Consistently strong cloud revenue growth DESKTOP SUBSCRIPTION 13.0 14.1 -7
Slide 18: Legal Group Financials
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Legal Group Financials Growing subscription revenue and a top tier customer base FY24 FY23 Financial highlights Revenue $M $M GROWTH Revenue DOCUMENT WORKFLOWS SUBSCRIPTION 11.0 10.6 +4% • Strong subscription ARR growth of 13% BILLING WORKFLOWS SUBSCR
Slide 19: Summary
Summary A software as a service (Saas) company with two clearly defined businesses and opportunities Executing on plan to create valuation improvement and shareholder return For personal use only Strong consistent financial results - $54M in Revenue, $20M in EBITDA, and NPAT of $4M for full year 202
Slide 20: Questions
For personal use only Questions RECKON INVESTOR PRESENTATION FY 2024 20
Slide 21: Resources
Resources Website reckon.com For personal use only About us reckon.com/au/about-us Investors reckon.com/au/investors Media reckon.com/au/media RECKON INVESTOR PRESENTATION FY 2024 21