Ahead of its annual report on May 22, Xero [NZX: XRO] has released a version of its annual result restated to include a new break-down of expenses.
Expenses are now categorised by cost of revenues, sales and marketing, product design and development, and general and administration, rather than expense types such as employee entitlements, advertising and marketing, consulting, travel and so on.
The new presentation provides greater insight into Xero’s business model. It also ensures that its reporting is more closely aligned to other major SaaS (“software as a service”) companies, Xero says.
The new breakdown (click to zoom)