Xero – investment for growth is working
Announcement posted by Xero 23 May 2013
MARKET RELEASE
Xero – investment for growth is working
23 May 2013
(Note: all currency is in New Zealand dollars)
Xero Limited (XRO) has again doubled revenues and customer numbers in the financial year, with an increasingly globally diverse income. Xero is continuing its growth agenda to create long-term shareholder value by building a global Software-as-a-Service company.
Xero’s total operating revenue for the year ended 31 March 2013 reached $39.0 million, up from $19.4 million the previous year. Paying business customer numbers increased to 157,000 at 31 March 2013, up from 78,000 a year ago. Annualised Committed Monthly Revenue also doubled, to $51.5 million from $25.5 million. As anticipated the full year loss grew, coming in at $14.4 million.
Performance highlights
Year ended Year ended Year-on-year change
31 March 2013 31 March 2012
Total operating revenue $39.0m $19.4m +102%
Net loss after tax ($14.4m) ($7.9m) +83%
At 31 March 2013 At 31 March 2012
Cash at bank $78.2m $39.0m +101%
Paying business customers 157,000 78,000 +101%
Annualised Committed Monthly Revenue $51.5m $25.5m +102%
Regional breakdown
Revenue - year ended Revenue - year ended Customer numbers Customer numbers
31 March 2013 31 March 2012 at 31 March 2013 at 31 March 2012
New Zealand $16.9m $10.3m 73,000 47,000
Australia $13.9m $5.0m 51,000 16,000
United Kingdom $5.5m $2.7m 22,000 11,000
United States/Rest of World $2.7m $1.3m 11,000 4,000
Total $39.0m $19.3m 157,000 78,000
Commentary
2013 was about accelerated investment in the team to support expected future growth. In the period we grew our team from 194 to 382 in four countries.
While pleased to have quickly achieved over 150,000 customers, this is still a small portion of the vast small business market. Xero is a unique opportunity, addressing a vast market undergoing massive technological disruption. We believe we are still at the beginning of our journey.
For 2014 we intend to continue our high growth plan, further increasing the capacity of our team to continue our progress in all markets.
Hi-Tech Awards
The company’s traction globally has been recognised through collecting both the Exporter of the Year (over $5m) and Company of the Year Awards at the New Zealand Hi-Tech Awards in Auckland last week.
Investor Calendar
Xero notes the following planned dates for investors and analysts:
1 August 2013 - Annual Meeting at Soundings Theatre, Te Papa, Wellington from 4pm-5pm
21 November 2013 - Half Year Interim Report release
For more information contact:
Rod Drury
Xero CEO
+64 27 6000 007
About Xero
Xero provides beautiful, easy to use online accounting software for small businesses and their advisors. The company has over 150,000 paying customers and 200,000 users in more than 100 countries around the world. The company is listed on the NZX and ASX.
See www.xero.com