4 Apr 2014

Xero slightly beats sales forecast

12:00 pm on 4 April 2014

Xero has lifted annual sales 83 percent to $70.1 million, slightly above last November's forecast, but it expects its full-year loss to be about $35 million.

The accounting software company, which has a market value of more than $4.8 billion, says annualised committed subscriptions stood at $93 million at the end of March, up 81 percent from a year earlier.

Rod Drury.

Rod Drury. Photo: RNZ / Diego Opatowski

Xero says its second-half loss should be similar to the first half and the full-year loss will be more than double the previous year's loss of $14.4 million.

Cash on hand at the end of March was $210 million.

Xero raised 180 million dollars in fresh equity in October last year from investors including the American tech investor and billionaire venture capitalist, Peter Thiel.

Employee numbers, its biggest expense, jumped 98 percent to 758 while paying customers rose 81 percent to 284,000. Revenue per customer grew nearly 7 percent in constant currency terms.

Despite adverse currency movements, Xero's founder and chief executive Rod Drury said sales came in slightly ahead of expectations.