Shares in accounting software company Xero sank more than 5% on Friday on news of a new competitor in Australia.
The Australian-listed company Reckon launched its own software-as-a-service accounting offering earlier this week.
Forsyth Barr analyst Andrew Harvey-Green says Xero could be facing its most serious competition in Australia yet.
But even after Friday's decline, the market still values the company at more than $1.5 billion, despite its low annual sales.
Xero's annual net loss nearly doubled to $14.4 million. However, operating revenue also more than doubled - to $39 million.
The result was in line with the guidance provided by the company in April.
Xero says it's pleased to have quickly achieved more than 150,000 customers but that's still a small portion of the vast small-business market and it plans to continue on its high-growth path.
