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
