Slide 1: Investor Presentation – Half year ended 30 June 2024
Investor For personal use only Presentation For the half year ended 30 June 2024 To be read in conjunction with Appendix 4D 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 - $28m in revenue generated For personal use only in 1st Half 2024 with EBITDA of $12m and
Slide 4: Corporate overview
Corporate overview Capital Structure Board of directors ASX code: RKN Shares on issue: 113.3m Clive Rabie Market capitalisation: $66m NON-EXECUTIVE CHAIRMAN For personal use only Share price – low $0.495 to $0.655 Net cash: $0.9m Greg Wilkinson FOUNDER & NON-EXECUTIVE DIRECTOR Major shareholders Mic
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 For personal use only Total addressable market 3 million small businesses across Australia and New Zealand LEGAL Practice Management and Workflow for law firms Total addressable market 500 of the
Slide 6: Financial Results – Half Year 2024
Financial Results – Half Year 2024 REVENUE RECURRING REVENUE EBITDA $ 28 $ 26 $ 12 For personal use only million million million +1% over PcP +2% over PcP +6% over PcP Normalised NPAT DEVELOPMENT INVESTMENT DIVIDEND $ 3 * $ 7 2.5 million million cents per share fully franked *Non-IFRS adjusted for p
Slide 7: Cloud revenue growth of 8%
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Cloud revenue growth of 8% CLOUD Small Business Cloud User* Growth REVENUE CLOUD Servicing start ups, gig-economy, USERS $25.1m small and medium sized businesses 120K $25m FY23 user growth affected with accounting, payroll, and business 109k by discontinuati
Slide 8: Transition to Reckon One codebase underway
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Transition to Reckon One codebase underway Increased focus on the transition to the Ongoing product enhancements creating Reckon One codebase more valuable solutions for SME’s and employees 8% cloud revenue growth and 4% cloud user growth Journey to Reckon O
Slide 9: Customer case study: Operational Enhancement Solutions
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Customer case study: Operational Enhancement Solutions Cultivating productivity and a professional image from your home office. For personal use only The challenge: Rohan started his manufacturing consultancy business from his kitchen table! With rapid growt
Slide 10: Continued focus on employee engagement
Continued focus on employee engagement Very low staff turnover 4% YTD (14% tech industry average).Great spread of experience and new ideas with good tenure split. Tenure Summary: 1-5 YEARS - 44% 5-10 YEARS - 25% 10+ YEARS - 31% 94 96 OF EMPLOYEES AGREE THAT JUSTICE % % For personal use only WE ARE A
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 Servicing Legal firms with workflows through scanning Subscription revenue growth For personal use only & printing, billing and collections, cost recovery and $11.1M analytics solutions $10.8M Subscriptio
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: 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 accountant’s and att
Slide 14: Financial Highlights
For personal use only Financial Highlights RECKON INVESTOR PRESENTATION HY 2024 14
Slide 15: Group financial performance and cash flow
Group financial performance and cash flow (Continuing operations) HY24 HY23 GROWTH HY24 HY23 $M $M % $M $M Revenue 28.4 28.2 +1% Operating Cashflow 11.3 11.1 For personal use only (before development) EBITDA 11.7 11.0 +6% Development Spend (7.0) (7.3) Normalised NPAT* 3.1 3.1 - Dividend Paid - - Ful
Slide 16: Business Group Financials
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Business Group Financials A subscription business with consistently strong online growth Financial performance Revenue HY24 HY23 $M $M GROWTH Revenue For personal use only CLOUD SUBSCRIPTION 13.0 12.0 8% • Consistently strong cloud revenue growth • Subscript
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 HY24 HY23 CONSTANT CURRENCY $M $M GROWTH GROWTH Revenue For personal use only CORE SUBSCRIPTION 5.3 5.3 • Platform products start to contribu
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. For personal use only Executing on plan to create valuation improvement and shareholder retu
Slide 19: Questions
For personal use only Questions RECKON INVESTOR PRESENTATION HY 2024 19
Slide 20: 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 HY 2024 20