Autocount Dotcom Bhd Doubles Profit in Q2 2024, Driven by E-Invoicing Growth

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Autocount Dotcom Bhd, a leading developer and distributor of financial management software, has reported a strong financial performance for the second quarter ending June 30, 2024 (Q2’24). The company achieved a net profit of RM4.52 million, nearly doubling the RM2.35 million posted in the same quarter last year. This impressive growth reflects the company’s ongoing success in meeting the rising demand for financial management solutions in Malaysia.

53% Revenue Growth Driven by Software Sales and E-Invoicing

Revenue for the quarter surged by 53.2% year-on-year, reaching RM13.51 million, compared to RM8.82 million in Q2’23. This growth was primarily fueled by strong sales in financial management software distribution, which remains the company’s primary revenue driver, contributing 88% of total revenue.

The Malaysian market continues to be a key source of demand, accounting for 87% of total sales. A notable highlight for the quarter was the rapid adoption of Autocount’s e-invoicing service, with over 6,000 companies subscribing to the service, creating a significant new revenue stream for the business.

H1 2024 Performance

For the first half of 2024 (H1’24), the company posted a net profit of RM8.59 million, marking a 42.9% increase from RM6.01 million in H1’23. Revenue for the first six months rose by 41.3% to RM27.18 million, compared to RM19.24 million in the same period last year. The growth was propelled by continued demand for e-invoicing services, which has quickly become a key component of Autocount’s offerings.

Profitability Boost Despite Q2 Revenue Dip

Although Q2’24 saw a slight dip in revenue compared to Q1’24 due to fewer cases related to the MSME Digitalisation Grant, profit before tax (PBT) rose thanks to lower outsourced fees for customer implementation, support, and maintenance services. This improvement in profitability underscores the company’s ability to manage operational costs effectively while continuing to grow its customer base.

Optimistic Outlook and Growth Prospects

Autocount Dotcom is optimistic about its future growth, particularly with the rising demand for e-invoicing services. Managing Director Choo Yan Tiee noted that the strong performance in the first half of the year reflects the robust market for financial management solutions, with e-invoicing subscriptions driving significant new revenue.

The company’s large client base of over 210,000 customers positions it well to capitalize on the growing need for streamlined invoicing processes that enhance operational efficiency and compliance.

Government Support and Future Expansion

Autocount Dotcom is set to benefit from the RM100 million digitalisation grants announced in Budget 2024, aimed at supporting more than 20,000 SMEs and micro-entrepreneurs through the Malaysia Digital Economy Corporation. The company has prioritized its e-invoicing initiative to align with this government-backed push for digital transformation.

The introduction of a six-month grace period by the Inland Revenue Board for the adoption of the new e-invoicing system is expected to smooth the transition for businesses, giving them ample time to adapt without facing immediate penalties. The phased rollout, which began on August 1, will gradually extend to all companies by mid-2025.

With 767,000 micro-enterprises and 334,000 SMEs in Malaysia set to adopt these solutions, Autocount Dotcom sees significant growth opportunities ahead. As businesses increasingly embrace digital invoicing, Autocount is well-positioned to expand its market presence and drive further growth in the near future.