Estimated reading time: 1 minute, 43 seconds Spending Increases Loss

An increase in operating expenses led to a fiscal 2020 loss that was four times the prior year's red ink. The payments software company lost $31.1 million for the most recently completed year, compared to a $7.3-million loss for fiscal 2019.



Revenue for fiscal 2020 reached  $157.6 million, an increase of 45.5 percent from  $108.4 million the prior year.  The company said there were more than 98,000 customers at the end of the fourth quarter, a 28-percent increase from a year earlier. It ended the year with more than 2.5 million network reported a sharp increase in the number firms in its accounting program. CEO Rene Lacerte said in the company's webcast for earnings for the quarter that it closed fiscal 2020 with 80 of the Top 100 accounting firms in its program, compared to 70 the prior year. There were 5,000 total firms on June 30, a rise of 25 percent from 4,000 on June 30, 2019.

An increase in operating expenses that was 1.7 times higher than a year earlier contributed to the loss as increased spending in all categories.  R&D expenses rose to $53.4 million, an increase of 88.1 percent from $28.9 million in 2019. Sales and marketing spending reached $45.4 million, up 50.5 percent from $30.1 million.  G&A expenses of $53.9 million were 84.6-percent higher than the $29.2 million the prior year.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Read 643 times
Rate this item
(0 votes)

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.