Ann: FLLYR: XRO: Xero Annual Report FY2014

• Release Date: 22/05/14 16:01
• Summary: FLLYR: XRO: Xero Annual Report FY2014
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					XRO
22/05/2014 14:01
FLLYR

REL: 1401 HRS Xero Limited

FLLYR: XRO: Xero Annual Report FY2014

Xero grows revenue 83% to $70m with over $200m of cash for further growth

22 May 2014
(Note: all currency is in New Zealand dollars)

Xero Limited (XRO) has again significantly grown revenue and customer numbers
in its 2014 financial year and is now the leading accounting software
provider in New Zealand and the leading online accounting software in
Australia and the United Kingdom.

Xero recently passed 300,000 paying customers and was this week ranked number
one by Forbes in its list of the World's 100 Most Innovative Growth Companies
2014.

Xero's operating revenue was $70.1m for the year ended 31 March 2014, up 83%
from last year's $38.4m result. On a constant currency basis Xero grew
operating revenue by 92% in the period.  Customer numbers increased to
284,000 at 31 March 2014, up from 157,000 at 31 March 2013.

As anticipated, the full year loss grew to $35.5m.

Xero has $210m of cash to fund its growth strategy and commences its 2015
financial year strongly with $93m in annualised subscriptions (representing
an 81% increase on the $51.5m reported at the same time last year).

Performance highlights
[See PDF market release for full table]

Regional breakdown
[See PDF market release for full table]

Commentary

Recruiting senior management for growth and filling out global teams was a
key focus for the 2014 financial year as Xero added a further 376 employees.

With strong growth expected to continue in New Zealand, Australia and the
United Kingdom, Xero turns its focus on the important US market.  The US
market entry phase was completed successfully, allowing Xero to raise an
additional $180m of capital in October 2013, bolster the Board with
appointments of New York-based Chris Liddell as Chairman and San
Francisco-based Director Bill Veghte, and appoint Peter Karpas as CEO North
America.

Xero has been receiving US industry recognition, including: Accounting
Today's 2013 Top New Products: Honorable Mention - Xero Touch, Mobile
category; CPA Practice Advisor's 5-Star review 2013 (for Software as a
Service); and "Top Choice" for the best online business accounting app by PC
World / Macworld.

Xero has also made progress on a number of large-scale partnerships, and has
recently announced integration with Square, Inc. in the US and a strategic
alliance with H&R Block.

Closing Comments

Xero has proven its strategy and execution and continues to build a
world-class team, while substantially growing revenue.

Progress against the incumbents and its strong cash position sees Xero well
placed as the adoption of cloud software accelerates for small business.

Xero expects strong growth to continue for the foreseeable future.

Investor calendar

23 May 2014 - FY14 Investor Briefing conference call, 10.00am (NZST)
23 July 2014 - Annual Meeting from 4pm at Shed 6, Queens Wharf, Wellington
20 November 2014 - Half Year Interim Report release

ENDS
For more information contact:

Rod Drury, Xero CEO
[email protected]
+64 27 6000 007

Ross Jenkins, Xero CFO
[email protected]
+64 21 963 909
End CA:00250756 For:XRO    Type:FLLYR      Time:2014-05-22 14:01:08