Reckon, the underdog in the intensely competitive accounting software cloud wars, is concentrating on developing its product, rather that pushing into new markets, over the next year.

The company today posted a 25% drop in half year profit to $11 million, reflecting $22.8 million development spend on its Reckon One platform for small businesses and in building new markets in the US and the UK.

Revenue was up 7% to $97.8 million, subscription revenue growth was 13% higher at $70 million and online users grew 18% to reach 39,000.

A short time ago, its shares were down 2.5% to $1.67.

Reckon, in third place in the local cloud accounting software market behind the other two ASX-listed players Xero and MYOB, is building momentum in subscribers and product.

CEO Clive Rabie says he’s concentrating on top line growth.

“In each of our businesses we’ve had an improvement in growth of revenue,” he told Busienss Insider.

“Our investment into our growth, which is both in new markets and from investment, is starting to pay dividends.

“We are putting a lot of money into cloud technology.

“We’ve also put ourselves in new markets. And that’s already been done so we won’t be having any more investment in new market initiatives.

“And we just hope momentum stays on our side.”

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