Reckon (RKN) H2 2024 earnings summary

Executive summary

• SaaS provider with two main segments: SME accounting/payroll and legal workflow solutions.

• Achieved $54M revenue, $20M EBITDA, and $4M NPAT for FY24.

• Maintains a clean balance sheet with $2.9M net debt and a $25M bank facility.

• Paid a fully franked annual dividend of 2.5 cents per share in September 2024.

Financial highlights

• Revenue grew 1% year-over-year to $54.1M; EBITDA up 2% to $20.2M.

• NPAT was $4M, impacted by higher amortisation from prior development spend.

• Operating cash flow before development was $17.9M.

• Dividend of 2.5 cents per share fully franked.

Outlook and guidance

• Ongoing investment in cloud product development and scaling.

• Strategic focus on transitioning SME clients to Reckon One platform.

• Cashflow Manager acquisition expected to add $6M revenue, $3M EBITDA, and $1M NPAT in 2025.