Sharechat Logo

Xero more than doubles first-half sales; ASX listing pencilled for next month

Tuesday 2nd October 2012

Text too small?

Xero, the cloud-based accounting platform provider, more than doubled first-half sales and expects to list across the Tasman next month as it boosts its operations in Australia.

Operating revenue will be north of $16.7 million in the six months ended Sept. 30, up from $7.9 million a year earlier, the Wellington-based company said in a statement.

Its annualised monthly committed revenue accelerated to $38.7 million at the end of September, from $34.5 million flagged at its July annual meeting. Xero is proceeding with its plan for a secondary listing on the ASX, which it expects will happen in November, it said. "

The Australian region has shown particularly strong growth, with a tripling of the numbers of paying customers, on the back of the integrated payroll features and significant growth in numbers of accounting and bookkeeping partners," the company said. Xero added a further 11,800 customers since the July meeting, taking its client base to 111,800.

New Zealand clients account for 51 percent of the company's book, while Australian customers make up 29 percent. The push into Australia will heat up competition with MYOB, Australasia's dominant payment solutions firm, which has recently launched a cloud-based suite of services.

MYOB, which is controlled by US private equity firm Bain Capital, holds between 60 percent and 70 percent of New Zealand's accounting market. Last year, Xero decided to forego short-term profits for a growth strategy, and has been keen to buy assets, including local software firms and an Australian payroll company. The shares climbed 1 percent to $5.25 and have surged 88 percent this year.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Xero’s Drury says $180M capital raise ‘sends strong signal’ to competitors
Xero raises $180M selling shares at premium to Matrix, Thiel, others
Xero shares halted pending outcome of capital raising
Xero adds another 36k customers since March, sees 80 percent lift in 2014 sales, wider loss
Xero tells NZX that 23 percent slump in shares reflects volatility in tightly held register
Xero cracks $2 bln market cap, lifting Drury's paper fortune to $388M
Xero topples Port of Tauranga as highest price local stock on NZX
Xero chair, COO book million-dollar paydays after shares more than triple in past year
Xero posts $14.4 mln FY loss, doubles revenue and paying customers
Xero adds 23k customers since September, expects to double annual sales

IRG See IRG research reports