XRO
24/04/2015 08:49
FLLYR
PRICE SENSITIVE
REL: 0849 HRS Xero Limited
FLLYR: XRO: Xero Announces Fiscal 2015 Results
MARKET RELEASE
(Note: all currency is in New Zealand dollars and results are unaudited)
Xero Announces Fiscal 2015 Results
- Grows subscription revenue 81% to $121m
- Fast growing SaaS company ends year in strong cash position
24 April 2015 - Xero Limited (NZX/ASX: XRO) continued to deliver exceptional
growth for the year ended 31 March 2015, recording operating revenue of
$123.9m, up 77% from $70.1m in FY14.
Paying customers grew to 475,000 at 31 March 2015, up 67%, and subscription
revenue grew 81% to $120.9m. Xero's recurring revenue model means that it
commences its 2016 financial year strongly with $159.3m in annualised
committed monthly revenue, a 71% increase on the same time last year.
The Company will continue to invest to fuel growth and scale while
maintaining its focus on building a high margin business model. The business
maintained a strong cash position with $268.9m of cash at 31 March 2015 to
continue to invest in creating long-term shareholder value.
Highlights of the financial year ended 31 March 2015 include:
Revenue
- Subscription revenue of $120.9m, up 81% from $66.9m in FY14
- Constant currency subscription revenue of $122.5m, up 83% compared to FY14
- Operating revenue of $123.9m, up 77% compared with FY14
- Annualised committed monthly revenue (ACMR) of $159.3m, a 71% increase on
FY14
Operating Loss
- The net loss after tax for FY15 increased 96% to $69.5m, increasing to 56%
of operating revenue from 51% from FY14, reflecting the investment in product
development, and sales and marketing
Balance Sheet and Cash Flow
- Cash of $268.9m available to fund future growth and expansion
- During FY15, the Company used $88.4m of cash and cash equivalents in
operating and investing activities compared to $48.4m during FY14
- Xero raised $147.2m in March 2015
Business Highlights
- Paying customers increased to 475,000 at 31 March 2015, an increase of
191,000 or 67% compared to 284,000 last year at 31 March 2014
- Xero added 403 employees, and now has 1,161 staff globally to support
customer growth across all markets and to scale product development. Xero
anticipates a slower rate of employee growth in FY16.
Regional Breakdown
[Refer to attached PDF]
Comment from CEO, Rod Drury
"We're delighted with our achievements this year. We focused on adding and
integrating 400 talented people to our team for critical mass around the
globe. We're extremely proud to have done that while continuing to drive
strong revenue and customer growth across all markets. We have emerged as the
cloud accounting leader in three countries and are seeing positive momentum
in the U.S. market," said Rod Drury, CEO, Xero.
"Our platform now provides the most comprehensive small business accounting
experience for customers, winning against desktop solutions while delivering
the benefit of running a business anywhere, anytime, from any device. We have
delivered payroll and inventory across all markets, and we will continue to
add value to small businesses, accountants and bookkeepers through continued
innovation. We are very excited about FY16 and expect strong growth to
continue in all our core markets for the foreseeable future."
FY15 Commentary
Xero continues exceptional growth as the leader in cloud accounting in New
Zealand, Australia and the United Kingdom, with annualised subscriptions of
$39.5m, $74.2m and $25.9m respectively.
Strong growth is expected to continue in these markets, and Xero has focused
on building infrastructure to support its expansion in the U.S. market. The
U.S. remains a significant and addressable opportunity with the majority of
small businesses unserved by cloud accounting software. Xero is well
positioned to meet this need through its complete small business accounting
solution, purpose built for the Cloud and mobile devices.
During the second half of the year the U.S. management team formed, led by
U.S. President Russ Fujioka. The focus was on ensuring a solid foundation for
North America to enable it to scale, and during the second six months
customer growth was 300% greater than the first six months.
Xero continued to build its Global Leadership Team appointing Andy Lark as
Chief Marketing Officer, Angus Norton as Chief Product Officer, and San
Francisco-based Graham Smith was appointed to the Board as a non-Executive
Director.
An additional $147.2m of capital was raised in March 2015 from Accel Partners
and existing investor Matrix Capital Management, positioning Xero strongly
with $269m of cash.
Investor calendar (NZT)
24 April 2015, 9am NZT - Investor conference call
21 May 2015 - Annual Report release
22 July 2015 - Annual General Meeting (Wellington, New Zealand)
19 November 2015 - Half Year Interim Report release
[Refer to attached PDF for unaudited financial statements for the year ended
31 March 2015].
ENDS
About Xero
Xero is beautiful, easy-to-use online accounting software for small
businesses and their advisors. The company has 475,000 paying customers in
more than 180 countries. Xero seamlessly integrates with over 400 third-party
tools, and was recently ranked No. 1 by Forbes as the World's Most Innovative
Growth Company.
For more information contact:
Rod Drury Ross Jenkins
Xero CEO CFO
[email protected] [email protected]
+64 27 6000 007 +64 21 963 909
Chris Teeling Bridget MacDonald
Investor Relations Corporate Communications and Media
[email protected] [email protected]
+64 21 227 3136 +64 27 801 6000
End CA:00263527 For:XRO Type:FLLYR Time:2015-04-24 08:49:31
