5 Apr 2013

Xero forecasts bigger full year loss

10:07 pm on 5 April 2013

Cloud accounting software company Xero says it is likely to double its full year loss due to continued heavy investment in expanding its business in the lucrative US market.

The listed company expects a loss of $15 million for the year to the end of March, compared with nearly $8 million a year ago.

However it is anticipating operating revenue to double to $39 million. Customer numbers have doubled to 157,000 and the company expects revenue to rise at the same pace to $51.5 million.

Xero chief executive Rod Drury says 62% of income now comes from overseas.

Mr Drury told Radio New Zealand's Checkpoint programme on Friday the benefit of its investments over the last seven years is starting to come through.

"We've got New Zealand locked in, the Australian market has really taken off in the last year, we're seeing good success up in the UK as well. So the really big thing for the following year is to focus on the US market."

He said Xero also doubled its number of staff across its global opeations to 382 during the year.

Xero shares ended Friday's trading down 1.5%.