GetBusy anticipates ‘strong growth’ in SmartVault business for 2H21
In its half-year results for the six months to 30 June 2021, (GETB ) said it expects to see strong growth in recurring subscription revenue in its SmartVault business in 2H21.
The Group, which develops document management and task management software, said it remains confident that it can grow its recurring subscription revenues over the medium to long term despite reporting a wider pre tax loss for 1H21 as a result of booking higher costs.
The Company reported a pre-tax loss of £0.949m ($1.3m) compared to a previous loss of £0.712m in 1H20. Adjusted pre tax loss came to £0.47m compared to £0.25m in 1H20.
Despite the wider loss, GetBusy reported revenue in 1H21 at £7.4m up from £6.9m in 1H20. The Group said the increase in recurring revenue, which was up 12% on 1H20 on a constant-currency basis, was largely as a result of new customer growth in SmartVault.
GetBusy believes SmartVault, which it described as “a rapidly growing and highly scalable pure SaaS product” positions the business “uniquely” to capture a significant proportion of the accounting market.
The company said SmartVault's recurring revenue had risen by 26% at constant currency in 1H21 to £3.2 million which it explained was largely driven by strong new business.
Shares in GetBusy have increased by over 6% since the beginning of the year. The stock was trading 5.92% lower during late morning trading at 82.5p following the 1H21 results.
Operationally, GetBusy said it achieved early success in moving SmartVault to larger average customer size, with average selling price up 43%. Meanwhile, the Group saw a strong revenue recovery from new customers at Virtual Cabinet, which was up 95% on 1H20.
GetBusy describes its Virtual Cabinet software as a “capable and established hybrid solution with deep integrations into multiple leading tax and practice management providers.”
CEO Daniel Rabie said the firm’s increasing investments and its document management teams' complete focus is “on realising that growth potential over the next 3 to 5 years.”
GetBusy has over 300 paying users and has recently signed its first NetSuite channel partner which the Group describes as “an opportunity to expand into a new product segment.”
Commenting on the opportunity, Rabie told investors that he believes this partnership could open “substantial new addressable markets.” He stated that, “This important milestone provides validation around the problem we're solving and the specific market opportunity.”
Addressing the Company’s outlook, Rabie told shareholders: “We remain confident that we are in the right markets, with the right people and products to accelerate our growth in high quality recurring subscription revenues over the medium to long term. We continue to invest to support that growth and we look forward to the future with increasing confidence."
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