20 Jul 2016

Xero says it's on track to meet growth targets

1:24 pm on 20 July 2016

Xero is on track to meet its growth targets, according to the cloud accounting software company's founder and chief executive Rod Drury.

Xero CEO Rod Drury

Rod Drury Photo: RNZ / Diego Opatowski

Speaking before the company's annual meeting in Sydney on Wednesday, Mr Drury said Xero had positioned itself as a global company with a growing number of customers and offices around the world.

Mr Drury said Xero was well on its way to achieving its goal of earning a billion dollars a year in recurring revenue, as its customer subscriber base was expected to more than triple over the coming years to three million, from about 700,000 currently.

While Xero made a loss of $82.5 million in the 12 months ended in March, he said Xero was moving to a break-even position and beating the competition in key international markets.

"We have been competing hard against [our competitors] outside the US. And [compared] to our closest competitor, we have added two-and-a-half times as many customers as they did last year, outside of the US market.

"So we are building this very diversified global business which gives us time as the US market picks up and moves more to the cloud."

Xero had recently opened new offices in South Africa and Singapore, which were performing well, he said.