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- Release Date: 04/04/14 10:49
- Summary: GENERAL: XRO: Operating Update - Xero finishes year up 83% to $70m
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XRO
04/04/2014 08:49
GENERAL
REL: 0849 HRS Xero Limited
GENERAL: XRO: Operating Update - Xero finishes year up 83% to $70m
MARKET RELEASE
Xero finishes year up 83% to $70m
4 April 2014
(Note: all currency is in New Zealand dollars and results are unaudited)
Xero Limited (XRO) announces operating revenue of $70.1m for the year ended
31 March 2014, up 83% up from last year's $38.4m result.
With monthly committed subscriptions growing to $7.8m, the recurring revenue
model means that Xero 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).
The net loss after tax for the second half of the year ending 31 March 2014
is anticipated to be similar to that reported for the first half resulting in
a full year loss of approximately $35m, compared to $14.4m last year. Xero
has expanded its team to 758 employees and has $210m of cash to fund its
growth.
[refer to PDF release for table]
The strong New Zealand dollar adversely impacts reported operating revenue
given 66% of this revenue is denominated in foreign currencies. On a
constant currency basis Xero grew operating revenue by 92% in the period.
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.
Xero is now the leading accounting software provider in New Zealand and the
leading online accounting software in Australia and the United Kingdom, with
annualised subscriptions of $29m, $41m and $14m respectively.
With strong growth expected to continue in these markets, 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, bolstering the Board with appointments of New York-based Chris
Liddell as Chairman and San Francisco-based Director Bill Veghte and
appointing 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.
Regional breakdown
[refer to PDF release for table]
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 places Xero at
the forefront, as the adoption of cloud software accelerates for small
business solutions.
Xero expects strong growth to continue for the foreseeable future.
Investor calendar
22 May 2014 - Annual Report release
23 July 2014 - Annual Meeting
20 November 2014 - Half Year Interim Report release
ENDS
For more information contact:
Rod Drury Ross Jenkins
Xero CEO Xero CFO
[email protected] [email protected]
+64 27 6000 007 +64 21 963 909
End CA:00249127 For:XRO Type:GENERAL Time:2014-04-04 08:49:19
