XRO
20/11/2014 15:13
HALFYR
REL: 1513 HRS Xero Limited
HALFYR: XRO: Xero 2014 Interim Report
Please see attached Xero's 2014 Interim Report and related market release
below.
XERO LIMITED (XRO)
MARKET RELEASE
Xero's momentum continues in all markets
20 November 2014
(Note: All currency is in New Zealand dollars)
Xero Limited (XRO) continues to deliver high growth as the business builds
capability to serve millions of small businesses on its financial platform.
Following the $180m capital raise in October 2013, this past year has been a
period of high investment for Xero, as staff numbers grew 70% from September
2013, to 993 at 30 September 2014. The business had $170.8m of cash at 30
September 2014 to continue to invest to create long term shareholder value.
The Company will continue to invest to fuel growth while architecting a high
margin business model as it achieves scale.
Highlights of the first half of the financial year ended 30 September 2014:
- Subscription revenue of $52.0 million, up 85% from $28.1 million for the
same period last year.
- 371,000 paying customers globally compared to 211,000 at the same period
last year, a 76% increase.
- Annualised committed monthly revenue (ACMR) of $132.3 million at 30
September 2014, an 87% increase on the same period last year.
- Net loss after tax of $24.5 million, reflecting the investment in product
development and sales and marketing.
- $170.8 million cash at 30 September 2014 to fund future growth.
[Please see attached for PDF table]
Commentary
Xero's exceptional growth in New Zealand, Australia and the United Kingdom
continues to extend its leadership in cloud accounting, validating the
Company's business model and providing the experience to similarly scale in
the US. The US is a significant and addressable opportunity with the majority
of small businesses unserved by cloud accounting software, and Xero is well
positioned to meet this need directly through Xero.com and its accounting
partners.
Adding to this momentum, the US leadership has been strengthened with the
appointment of three senior executives:
- John Forrester, VP of US Marketing - Forrester has 20+ years of marketing
experience from product and content to brand and digital with a mix of
startup and corporate experience. Most recently, John was VP Marketing at
RingCentral.
- James Maiocco, GM of Business and Corporate Development - Maiocco joins
Xero from Microsoft, where he led the investment and partnership efforts for
Microsoft Ventures globally. Bringing over 15 years experience in business
and corporate development at SaaS-based, Cloud-first technology companies
with him, James' focus will be on the US and United Kingdom.
- Angus Norton, Senior Vice President/Chief Product Officer - Norton joins
Xero after 14 years of hi-tech experience in the US. Most recently, he was
with Microsoft where he led product management for the entire Office business
in the US, and drove Microsoft's successful transition to the Cloud with
Office 365.
Further appointments will be announced over the coming months.
CEO Rod Drury says, "We're thrilled at the growth we're achieving in our
initial three markets and are now focussed on execution in the important US
market and are making good progress on building our leadership team there.
Our investment over the last year, combined with our clean Cloud-first
platform, will allow us to further increase the rate of innovation. It will
be an exciting next few years for small businesses and accountants."
Xero previewed its soon-to-be-launched business performance dashboard at a
major US accounting conference. Using "Big Data for Small Business" Xero will
help small businesses to get visibility, to measure and attain insights that
will help them become even more successful, while empowering their
accountants, bookkeepers and advisers to have deeper conversations based on
meaningful data and information.
"This is just the first step in how we'll be looking to use big data from our
global accounting platform to put small businesses in control and grow,"
added Drury.
Additional commentary is included in Xero's 2014 Interim Report, which has
also been released today.
For more information contact:
Rod Drury Ross Jenkins
Xero CEO Xero CFO
[email protected] [email protected]
+64 27 6000 007 +1 415 860 3910
About Xero
Xero is beautiful, easy to use online accounting software for small
businesses and their advisors. The Company has over 370,000 paying customers
in more than 180 countries around the world. Xero is listed on the NZX and
ASX. See www.xero.com
End CA:00257901 For:XRO Type:HALFYR Time:2014-11-20 15:13:53
