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Xero has $85 million of cash in first cashflow report

Thursday 31st January 2013

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Accounting software firm Xero had $85 million of cash at the end of 2012 after raising $60 million in a private placement in December.

The figure is revealed in its first quarterly cashflow report, which is required by the ASX. Xero took up a secondary listing on ASX in November.

The report shows net operating and investing cash outflows for the quarter of $6 million.

Xero spent $6.48 million on staff costs in the quarter and $1.05 million on advertising and marketing.

Its receipts from customers were $10.12 million in the quarter and $25.96 million in the nine months to Dec. 31.

Earlier the company reported revenue of $17.3 million in accounts for the six months to Sept. 30 and operating expenses of $22.8 million. It said it had annualised committed revenue of $38.7 million.

Xero has about 3,000 shareholders and 48 percent of its shares are held by directors and staff.

In the capital raising, Peter Thiel-backed Valar Ventures of San Francisco invested $24 million and Massachusetts-based Matrix Capital Management invested $58 million. They also purchased collectively $22 million of existing shares from Xero's three largest shareholders

The company is loss-making at present, judging it better to invest in accelerated growth to capture market share in the global market for online, cloud-based business systems.

The shares fell 0.7 percent to $7.25 in trading today.

 

DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.

BusinessDesk.co.nz



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