Reckon’s 2024 revenue tops $54 million
ASX-listed Reckon Group’s 2024 revenue from continuing operations was $54.1 million, up 1% on the previous corresponding period (PcP).
Reckon’s Net Profit After Tax (NPAT) was $3.6 million, down compared to the PcP, due to higher amortisation resulting from higher development spend in prior periods and the impact of an R&D refund in FY2023, related to the prior year. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) during the year was $20.2 million, up 2% on the PcP.
Group operating cashflow after accounting for $14.4 million of development spend was $3.4 million.
Reckon Group CEO Sam Allert said, “We maintained our performance from 2023 with a positive and hard-fought result across revenue, EBITDA and NPAT. We remained committed to our strategy of driving revenue growth within the highly profitable, cash-generating Business Group while simultaneously investing in our proprietary software, Reckon One, together with the high growth opportunities provided by our US and UK focused Legal Group, trading as nQ Zebraworks.
“The Business Group continued its momentum from 2023, prioritising organic growth in cloud revenue and user acquisition while transitioning its existing customer base to the Reckon One platform. With an EBITDA margin of 51% (28% adjusted EBITDA margin after development costs), the Business Group maintained strong cash generation, enabling further investment in Reckon One and its accounting and payroll solutions.
“The year concluded with the acquisition of Cashflow Manager, a provider of desktop-based accounting and payroll software. This addition of 20,000 customers and 1,000 partners further strengthens our market position, providing additional scale and cash flow as we continue advancing our strategy of migrating users to our cutting-edge cloud solutions.
“The Legal Group experienced moderate revenue expansion in Document Workflows, its core offering which includes scan, print, and cost recovery solutions. Meanwhile, the cloud-based Billing Workflows solution that includes BillingQ, PayQ and DataQ demonstrated notable traction, achieving a twofold increase in platform subscription revenue compared to FY23. These solutions offer value-added services for law firms, complementing their existing practice management systems. Given the substantial addressable market in the US and UK, our ongoing investment in Billing Workflows is expected to drive further growth. BillingQ, in particular, presents a chance to enhance wallet share through its integrated payment collections process.
“To capitalize on emerging opportunities, Reckon participated in a $US4.5 million capital raise by nQueue Zebraworks Inc., aimed at strengthening the Legal Group’s sales and support capabilities.
“Looking ahead, 2025 is poised to be a pivotal year for us. The Legal Group is funded to accelerate growth in its Billing Workflows offerings, while the Business Group is positioned to consolidate its years of development with continued enhancements to Reckon One and a sharp focus on transitioning its legacy customer base to Reckon One,” ended Allert.
