Hello fellow investors and tech enthusiasts!
Today, we’re diving deep into the latest financial performance of AUTOCOUNT DOTCOM BERHAD, a key player in Malaysia’s financial management software landscape. The company has just released its unaudited interim financial report for the Second Quarter ended 30 June 2025 (Q2 FY2025), and there’s plenty to unpack.
While the quarter saw a strong surge in profit compared to the same period last year, there’s a nuanced picture emerging as we look at sequential performance and strategic initiatives. From impressive year-on-year growth to new product launches and a proposed transfer to the Main Market, AUTOCOUNT is definitely keeping things interesting. Let’s break down the numbers and what they mean for the company’s trajectory.
Q2 FY2025: A Snapshot of Performance
AUTOCOUNT DOTCOM BERHAD has demonstrated robust growth in its second quarter results compared to the same period last year, signalling strong underlying demand for its financial management software solutions.
Revenue and Profit Soar Compared to Last Year
Q2 2025
- Revenue: RM20.17 million
- Profit Before Tax (PBT): RM11.96 million
- Profit After Tax: RM8.61 million
- Basic and Diluted Earnings Per Share (EPS): 1.56 sen
Q2 2024
- Revenue: RM13.51 million
- Profit Before Tax (PBT): RM5.98 million
- Profit After Tax: RM4.52 million
- Basic and Diluted Earnings Per Share (EPS): 0.82 sen
For the individual quarter ended 30 June 2025, AUTOCOUNT’s revenue surged by 49.30% to RM20.17 million from RM13.51 million in the second quarter of 2024. This impressive growth translated into an even more remarkable increase in profit before tax (PBT), which doubled by 100.08% to RM11.96 million. Consequently, profit after tax jumped by 90.41% to RM8.61 million, with earnings per share rising to 1.56 sen from 0.82 sen.
The primary driver for this substantial improvement was the strong demand for the company’s financial management software distribution, which saw a revenue increase of RM6.72 million or 56.63%.
Year-to-Date Performance
The cumulative performance for the first half of 2025 also paints a very positive picture:
YTD 2025
- Revenue: RM45.73 million
- Profit Before Tax (PBT): RM29.99 million
- Profit After Tax: RM22.27 million
- Basic and Diluted Earnings Per Share (EPS): 4.05 sen
YTD 2024
- Revenue: RM27.18 million
- Profit Before Tax (PBT): RM11.35 million
- Profit After Tax: RM8.59 million
- Basic and Diluted Earnings Per Share (EPS): 1.56 sen
Year-to-date, AUTOCOUNT’s revenue grew by a significant 68.24% to RM45.73 million, compared to RM27.18 million in the corresponding period last year. Profit before tax for the six months surged by an astounding 164.15% to RM29.99 million, while profit after tax increased by 159.17% to RM22.27 million. This translated to diluted earnings per share of 4.05 sen, up from 1.56 sen.
This impressive growth underscores the company’s ability to leverage its relatively fixed cost base, especially staff-related expenses, resulting in higher profitability as revenue expands.
Revenue Mix: What’s Driving Growth?
The core of AUTOCOUNT’s business remains its financial management software distribution:
| Revenue Segment | Q2 2025 (RM’000) | % of Total Revenue (Q2 2025) | YTD 2025 (RM’000) | % of Total Revenue (YTD 2025) |
|---|---|---|---|---|
| Distribution of financial management Software | 18,594 | 92.17% | 42,834 | 93.67% |
| Technical support & maintenance | 934 | 4.63% | 1,812 | 3.96% |
| Others | 645 | 3.20% | 1,081 | 2.37% |
| Total Revenue | 20,173 | 100.00% | 45,727 | 100.00% |
Malaysia remains the powerhouse, contributing over 90% of total revenue in both the quarter and year-to-date, with Singapore being the main overseas market contributor.
A Look at Sequential Performance: Q2 2025 vs. Q1 2025
While the year-on-year figures are stellar, it’s important to also compare the current quarter with the immediate preceding quarter (Q1 2025) for a complete picture:
Q2 2025
- Revenue: RM20.17 million
- Profit Before Tax (PBT): RM11.96 million
Q1 2025
- Revenue: RM25.55 million
- Profit Before Tax (PBT): RM18.03 million
Here, we observe a dip. Revenue decreased by 21.06%, and PBT declined by 33.65% compared to Q1 2025. This was primarily attributed to lower demand for the e-invoicing module, following a deferment in the implementation of the e-invoicing system for businesses with an annual turnover of RM5.0 million and below. Additionally, higher staff-related expenses due to an underprovision in the previous financial year and professional fees incurred for the Group’s ongoing transfer listing exercise impacted profitability.
Financial Health: Balance Sheet and Cash Flow
The Group’s financial position remains robust. As at 30 June 2025, total assets increased to RM88.49 million from RM75.92 million at the end of 2024. Current assets, particularly short-term investments and cash balances, saw a healthy increase, indicating strong liquidity.
Cash flows from operating activities were strong, generating RM31.85 million for the six months ended 30 June 2025, compared to RM8.95 million in the same period last year. This demonstrates the company’s ability to convert its impressive revenue into solid cash generation, even after a significant dividend payment of RM22.02 million during the period.
Navigating the Future: Risks, Strategies, and Opportunities
The financial management software industry is dynamic, driven by increasing digitalization and government initiatives. AUTOCOUNT DOTCOM BERHAD is well-positioned to capitalize on these trends, but also faces certain challenges.
Industry Tailwinds and Strategic Positioning
The company is confident in its strategic positioning, aligning with macro-trends such as:
- Increasing demand for streamlined financial management processes and automation across businesses.
- Accelerating pace of digitalisation and technological advancements.
- Governmental initiatives promoting digital transformation across Malaysia, Singapore, Thailand, Indonesia, Vietnam, and the Philippines.
These factors create a favourable environment for AUTOCOUNT to thrive. The company’s expansion plans, supported by its initial public offering (“IPO”) proceeds, are expected to further boost financial performance.
Key Initiatives and Product Launches
AUTOCOUNT is actively innovating to stay ahead:
- Launch of AutoCount e-Invoicing solutions.
- Partnership with Institutes of Accountants & Bookkeepers (IAB) LCCI for Asia’s first cloud accounting program.
- Introduction of AutoCount OneSales PalmPOS, a mobile POS solution specifically designed for micro-SMEs, integrating seamlessly with AutoCount Cloud Accounting for effortless e-invoicing and digital payment management.
These initiatives not only strengthen market presence but also cater to a broader range of businesses, including micro-SMEs, tapping into a growing segment.
Budget 2025 and Digitalisation Grants
A significant opportunity comes from Budget 2025, which announced RM50.00 million in digitalisation grants. These grants are expected to accelerate digital transformation for SMEs, local entrepreneurs, and small vendors. This is a direct tailwind for AUTOCOUNT, as its software solutions support the adoption of digital technologies like e-POS systems, CRM systems, digital marketing, e-commerce, and remote working solutions.
IPO Proceeds Utilisation and Corporate Proposals
As at 30 June 2025, AUTOCOUNT has utilised RM10.76 million out of the total RM30.88 million IPO proceeds. The remaining RM20.12 million is earmarked for regional expansion, strengthening R&D, and working capital, all of which are crucial for long-term growth and competitiveness. The company has also initiated a proposed transfer of its listing from the ACE Market to the Main Market of Bursa Malaysia Securities Berhad, reflecting its maturity and growth ambitions.
Potential Challenges
Despite the positive outlook, challenges exist. The deferment of the e-invoicing mandate for smaller businesses impacted Q2 2025 results, highlighting sensitivity to regulatory changes and the timing of their implementation. While the company has diversified with PalmPOS, continued strong reliance on the Malaysian market (over 90% of revenue) suggests potential exposure to domestic economic fluctuations. However, regional expansion efforts using IPO proceeds aim to mitigate this by fostering growth in new markets like Singapore, Thailand, Indonesia, Vietnam, and the Philippines.
Summary and Investment Recommendations
AUTOCOUNT DOTCOM BERHAD’s Q2 FY2025 report reveals a company on a strong growth trajectory, particularly when comparing against the previous year. The significant year-on-year increases in revenue and profitability underscore its robust market position and effective cost management. The consistent focus on innovation, strategic partnerships, and catering to the evolving needs of businesses, including micro-SMEs with solutions like AutoCount OneSales PalmPOS, positions the company well for future opportunities.
However, the sequential dip in performance due to the e-invoicing module deferment serves as a reminder of potential sensitivities to policy changes and market demand shifts. The company’s ongoing efforts in regional expansion and R&D, funded by IPO proceeds, are critical for diversifying its revenue streams and sustaining long-term growth.
Key areas to watch going forward include:
- The pace of digitalisation across SMEs and how effectively AUTOCOUNT captures the opportunities arising from government grants like those under Budget 2025.
- The successful execution of its regional expansion plans and the impact on overall revenue diversification.
- The progress of its proposed transfer to the Main Market, which could enhance its visibility and investor appeal.
- Continued innovation in its software solutions, especially in response to evolving regulatory landscapes and technological advancements.
AUTOCOUNT is clearly navigating a dynamic market with strategic intent. Its ability to adapt and innovate will be key to maintaining its strong momentum.
In my view, AUTOCOUNT’s latest report showcases a resilient company that is actively seizing growth opportunities while managing operational realities. The strong fundamentals are there, backed by consistent cash generation and strategic product development. The slight sequential slowdown in Q2 is a point to monitor, but the overall growth narrative remains compelling, driven by the broader push towards digital transformation.
Furthermore, the Board of Directors recently declared another interim dividend of 2 sen per ordinary share, amounting to RM11.01 million for FY2025, to be paid on 26 September 2025. This reflects the company’s continued commitment to returning value to its shareholders.
What are your thoughts on AUTOCOUNT DOTCOM BERHAD’s latest performance? Do you think the company can maintain this impressive growth momentum, especially with its regional expansion plans and new product offerings like AutoCount OneSales PalmPOS? Share your insights and perspectives in the comments section below – I’d love to hear what you think!
Stay tuned for more updates and in-depth analyses of companies making waves in the market. Don’t forget to check out our other recent articles on market trends and company reports!
