Xero has seen its annual loss grow by 25% but maintains it is on track to break even next year with revenues more than doubling in the 12 months ending March.As earlier predicted by the co-founder Rod Drury, the online accounting software company, its rev
Xero has seen its annual loss grow by 25% but maintains it is on track to break even next year with revenues more than doubling in the 12 months ending March.
As earlier predicted by the co-founder Rod Drury, the online accounting software company, its revenues rose to more than $3 million, up 229% on the previous year. Revenues in the first half of the year were up 282% to $1.3 million.
Despite this, its annual loss grew from $6.8 million to $8.5 million.
This was largely driven by a 54% increase in operating expenses, up $4.5 million to $12.9 million. Xero said this jump in expenses was primarily due to an increase in staff from 56 to 90 over the past year.
It said it still expects to reach a monthly break even report during the 2011 calendar year.
It bought itself some breathing space last year with a successful placement and rights issue raising around $28 million, which saw its cash and bank balances rise from $3.8 million to $21.4 million at the end of the financial year.
Xero’s shares (NZX:XRO) performed strongly over 2009 after a series of deals with Telecom, Telstra and British Telecom helped fuel customer growth and sat at $1.58 at the start of this morning’s trading.
Customer numbers during the year rose from 6000 to more than 17,000.
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