11 May 2017

Xero revenue up 43%, narrows financial year loss

12:13 pm on 11 May 2017

Xero has cut its full year net loss by more than $13 million, as it continues toward a break-even position.

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Photo: RNZ

The cloud accounting software company net loss narrowed by 16 percent to nearly $69.1m in the 12 months ended March, compared with last year's $82.5m loss.

The bottom line reflected improved gross margins and a near 43 percent rise in revenue to $295.4m.

Xero chief executive Rod Drury said the company added more than half a million global subscribers, driving annualised revenue up more than a $100m to $360m.

"It has been a milestone year for Xero, achieving operating cash flow break-even in the second half of the financial year, and doubling subscriber numbers in less than two years to pass the one million subscriber mark, while completing our major re-platform to Amazon Web Services," he said.

Most of Xero's customers are in New Zealand and Australia, with just over 200,000 in Britain, 92,000 in North America, and the rest in its new markets of Singapore and South Africa.