Xero reports higher FY revenue, narrower net loss
Xero, the cloud-based accounting software firm, narrowed its full-year loss as revenue gained.
Xero said its operating revenue was $295.4 million in the 12 months ended March 31, up 43 percent on the year earlier. Its net loss was $69.1 million, 16 percent narrower than the $82.5 million reported in the prior period. In constant currency terms, operating revenue was up 51 percent.
Its loss on an earnings before interest, tax, depreciation and amortisation basis narrowed to $28.6 million from $59.9 million in the prior 12 months.
The company said it now has 1,035,000 subscribers, after adding 318,000 over the past year.
Xero did not give any specific guidance other than to say operating metrics are expected to improve in the 2018 financial year as the company drives efficiencies through automation and economies of scale. It also noted that cash usage in 2018 (based on foreign exchange rates at April 1, 2017) is forecast to reduce from the 2017 financial year. In the current financial year operating cash outflow reduced to $4.4 million from $34.8 million in the prior year.
The company's shares advanced 0.9 percent to $22.05, having gained 25 percent this year.
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