Sharechat Logo

Xero posts wider loss, eats into cash buffer to ramp up global growth

Friday 14th May 2010

Text too small?

Xero Limited reported a wider full-year loss as it spent more to ramp up global growth.

The net loss was $8.45 million, or 10 cents a share, in the 12 months ended March 31, from a loss of $6.75 million, or 12 cents a year earlier, the company said in a statement. Sales rose 229% to $3.2 million.

Operating costs outstrip revenue by about three times at Xero, which is optimistic it will break even in 2011. It raised $29 million in new capital last year, providing the funds to meet its outgoings, which outstrip sales during its growth phase.

The company has attracted some high-profile backers, including cashed-up TradeMe founder Sam Morgan and Craig Winkler, a founder and former CEO of Australian rival MYOB.

Net cash used for operations rose to $6.8 million in the latest year, from $5.1 million a year earlier. Its cash and funds at the bank stood at $21.4 million. Operating expenses were $12.87 million in the year ended March 31, reflecting its expansion, with headcount rising to 90 from 56 during the year.

As a ‘growth’ company, Xero’s revenue is dwarfed by its market capitalisation, which stands at about $139 million. The shares fell 0.6% to $1.57 on the NZX today and have climbed 5% in the past year.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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