B2B Payments

Small Businesses Eyed In MYOB’s Profit Boost

Accounting software firm MYOB, based in Australia, has released its six-month financial reports, posting $22.4 million in after-tax profits. According to reports, the company’s small business segment attributed to much of that performance.

Reports Thursday (Aug. 24) said small- and mid-sized businesses (SMBs) accounted for 62 percent of MYOB’s six-month revenue figures for the first half of the 2017 financial year, with MYOB enjoying a 13 percent year-on-year increase in profits. Revenues also increased by 14 percent to $161 million.

According to MYOB, recurring revenue comprised 96 percent of total revenues, with SMBs largely behind that drive. Paying small business users increased by 5 percent driven by online additions, the company said. Enterprise Solutions revenue increased by 38 percent.

The 2017 fiscal year is the first in which MYOB operated its Payment Solutions unit, a result of its Paycorp acquisition earlier this year. That takeover also landed MYOB approximately 6,500 new customers.

“Our commitment to the Connected Practice Strategy continues to position us as a leader in the industry, enabling digital transformation amongst [SMBs] and advisors, which remain central to our vision,” said MYOB CEO Tim Reed in a statement. “Our focused investment in the MYOB platform remains a key driver of our success, as we continue to develop products and services that leverage artificial intelligence and machine learning.”

Earlier this year, the MYOB name was fraudulently used in part of an eInvoice scam, with criminals sending fake invoices with the MYOB logo attached to the bills. The incident occurred multiple times this year, and is part of a rising strategy of cybercriminals. The cyber attackers target businesses’ accounting units by sending fake invoices in hopes the recipient will pay them.

Using the MYOB name, analysts said, is part of that tactic.

“By targeting popular brands, recipients are more likely to have a relationship with the company being impersonated,” said antispam, antivirus and data security essentials provider MailGuard in June, when it reported on the incident. “That’s an instant foot in the door.”

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