9 Oct 2014

Big jump in Xero first half sales

1:25 pm on 9 October 2014

Xero's first-half sales jumped 79 percent although its growth in customers in the United States has been disappointing.

The software accounting company expects to post a loss of about $25 million for the latest six months, up from $17 million in the previous first half.

Xero's sales for the six months ended September rose to $54.3 million.

Xero chief executive Rod Drury.

Xero chief executive Rod Drury. Photo: RNZ / Diego Opatowski

On an annualised basis subscription revenue climbed to more than $132 million from $93 million in March.

Customer numbers in the US reached 22,000 - up just 4,000 since March.

Last month Xero lost its US chief executive, Peter Karpas. It has now appointed Andy Lark, who has previously worked for Dell, Sun Microsystems and Nortel, as its chief marketing officer who will be responsible for driving growth in the US.

Xero's chief executive and founder Rod Drury said he's pleased with the results.

Xero's employees passed 1,000 in the latest six months and it still had nearly $171 million in cash at the end September.

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