Sharechat Logo

Xero first-half sales gain 84 percent, cash on hand falls to $55 mln

Thursday 3rd October 2013

Text too small?

Xero, the cloud-based accounting firm whose shares have soared 150 percent this year, said first-half sales almost doubled as it continued to chase customer growth ahead of profits.

Operating revenue exceeded $30.3 million in the six months ended Sept. 30, from $16.5 million a year earlier, the Wellington-based company said in a statement. The figures exclude its Xero Personal product, which is being withdrawn in November next year. It contributed $600,000 of sales last year.

Total paying customers rose to 211,300 as at Sept. 30, from the 200,000 level it reached at August 30 and up 89 percent from September last year.

The company is seeking to build its customer base to 1 million, burning cash in the process as it builds scale. Cash on hand fell to $55 million from $69 million at June 30.

The fastest growth in the first half came from Australia, where customers rose 143 percent from a year earlier to 79,100. US/Rest of the World customers rose 141 percent to 16,600 and UK customers rose 99 percent to 30,100. In its largest market of New Zealand, customers rose 49 percent to 85,500.

Xero didn't give figures for earnings.

The shares last traded at $19, compared to $7.60 at the start of the 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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report