The fight between MYOB and Xero continues, with MYOB reaching the milestone of more than 100,000 online subscribers even as some users have continued to switch to Xero.
The achievement is a new record for MYOB, which is coming from behind in terms of numbers of cloud customers in the race to dominate cloud accounting after launching AccountRight two years ago.
The percentage of new MYOB customers taking online subscriptions is also increasing. This week MYOB reported that 70 percent of its new clients take out an online subscription. Earlier in June, 63 percent of new registrations were for cloud products.
[Related: MYOB and Xero locked in a bitter cloud war]
On the same day that MYOB announced it had reached 100,000 online subscribers, Xero reported that it had surveyed new customers who had joined since September 2013 and 67 percent who responded said they had switched from a rival product. This statement from Xero did not state how many survey respondents there were.
While MYOB leads in terms of revenue, Xero has more cloud customers, last month stating it had over 330,000 paying customers. Xero’s customers in Australia nearly doubled in the year to August, reaching more than 147,000.
Meanwhile, MYOB CEO Tim Reed has mentioned the possibility of listing in the future. The company is negotiating to refinance its senior debt.
“With continued strong financial performance and favourable credit markets, it is an appropriate time to negotiate greater flexibility in debt arrangements, lowering the cost of our debt and building in the flexibility for a possible market listing in the future,” Reed said.
Both MYOB and Xero have recorded significant previous gains in revenue. MYOB revenue increased by $23.7 million or 21 percent, to $140 million for the half year finishing 30 June 2014.
Xero has also seen big gains, with revenue increasing 83 percent to NZ$70.1 million (AU$62.3 million) in the year to 31 March 2014.
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