Accounting software company Reckon Limited (ASX: RKN) reported a 20% revenue decline for the half financial year to June 2018. However, it appears to have beaten analyst forecasts.
In an announcement to the ASX this morning, Reckon revealed revenue of $39.9 million on a statutory basis. Including just its ‘continuing business’ Reckon said revenue was down just 6%.
The company reported having 51,000 cloud-based product users but said its desktop business continues to be hurt as clients move to the cloud.
Rivals Xero Limited (ASX: XRO), Intuit Inc (NASDAQ: INTU) and MYOB Group Ltd (ASX: MYO) have also grown aggressively into the cloud accounting software market.
“We remain positive that future growth will be achieved in all divisions,” Managing Director Clive Rabie said.
“We have been focused on developing exciting new products which in turn are expected to open new markets to assist this growth over the coming years.”
Despite the decline in revenue, the $100 million company produced a half-year profit of $5.2 million, down 5%.
According to analysts surveyed by Bloomberg, Reckon was expected to report a half-year profit of $3.4 million with a dividend of 2.74 cents per share.
With a dividend of 3 cents per share, it appears Reckon beat analyst forecasts.
Looking into the future Reckon says it will focus on its growing cloud-based businesses and expanding its sales across new products and markets.
