- Release Date: 09/10/14 08:30
- Summary: GENERAL: XRO: Xero grows subscription revenue 85%
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XRO 09/10/2014 08:30 GENERAL REL: 0830 HRS Xero Limited GENERAL: XRO: Xero grows subscription revenue 85% MARKET RELEASE Xero grows subscription revenue 85% 8 October 2014 (Note: all currency is in New Zealand dollars and results are unaudited) Xero Limited (XRO) announces subscription revenue of $52.0m for the half year ended 30 September 2014, up 85% from $28.1m for the half year ended 30 September 2013. With monthly committed subscriptions growing to $11.0m, annualised subscriptions have grown to $132.3m (an 87% increase on the $70.6m reported at the same time last year). Xero continued its focus on building capacity, passing 1,000 employees in early October this year. The company has $170.8m of cash to fund its growth. [See PDF for table with key financial information] On a constant currency basis, Xero grew subscription revenue by 91% and operating revenue by 85% in the period. [Note: The constant currency analysis is a non-GAAP financial measure which has been provided to assist readers to better understand and assess the company's financial performance excluding the impact of foreign currency fluctuations during the period.] Commentary Xero's global customer base has grown 76% in the last 12 months to 371,000 customers. In New Zealand, over 20% of small businesses are using Xero, processing $60B of transactions in the last year. The focus is now on connecting small business with large Enterprises, Financial Institutions, and the Government. Both Australia and the UK are now significant growth engines for the company. Xero's largest market, Australia, doubled customer numbers over the last year and increased subscription revenue by 115% for the period compared to the six months to 30 September 2013. In the UK, Xero doubled its customer base for the sixth consecutive year, and is now the number one cloud accounting application for small businesses. With the three markets set up to deliver strong future growth, global management is now firmly focussed on the North American market. The company today announces the appointment of Andy Lark, internationally recognised marketer and online leader, to Chief Marketing Officer and will announce further executive appointments over the coming months. Regional breakdown [See PDF for table with regional breakdown] Xero confirms guidance of forecasted subscription revenue growth of approximately 80% on a constant dollar basis for the 2015 financial year. Xero expects strong growth to continue for the foreseeable future. Xero Limited's Half Year Report will be released on 20 November 2014. ENDS For more information contact: Rod Drury Ross Jenkins Xero CEO Xero CFO [email protected] [email protected] +64 27 6000 007 +1 415 860 3910 End CA:00256227 For:XRO Type:GENERAL Time:2014-10-09 08:30:16
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