Xero gears up for ASX listing
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(BusinessDesk) Xero, the cloud-based accounting platform provider, more than doubled first-half sales and expects to list across the Tasman next month as it boosts its operations in Australia.
Operating revenue will be north of $16.7 million in the six months ended September 30, up from $7.9 million a year earlier, the Wellington-based company says.
Its annualised monthly committed revenue accelerated to $38.7 million at the end of September from $34.5 million flagged at its July annual meeting.
Xero is proceeding with its plan for a secondary listing on the ASX, which it expects will happen in November, it says.
"The Australian region has shown particularly strong growth, with a tripling of the numbers of paying customers, on the back of the integrated payroll features and significant growth in numbers of accounting and bookkeeping partners."
Xero added a further 11,800 customers since the July meeting, taking its client base to 111,800. New Zealand clients account for 51% of the company's book and Australian customers make up 29%.
The push into Australia will heat up competition with MYOB, Australasia's dominant payment solutions firm, which has recently launched a cloud-based suite of services. MYOB, which is controlled by US private equity firm Bain Capital, holds between 60% and 70% of New Zealand's accounting market.
Last year, Xero decided to forego short-term profits for a growth strategy and has been keen to buy assets, including local software firms and an Australian payroll company.
The shares climbed 5.77% to $5.50 this morning,and have surged 88% this year.