1 mins to read

Xero narrows half-year loss

Online accounting company loses $3.7 million; says 40% of its revenue now comes from off-shore.

NBR staff
Fri, 18 Nov 2011

Online accounting software company Xero has reported a $3.7 million net loss after tax for the six months ending September 30.

For the same period last year, Xero lost $4.7 million (and for its full-year lost $7.5 million).

Revenue increased to $7.9 million - more than double the $3.8 million for the six months to September 30, 2010 (full-year revenue was $9.66 million).

Xero said it had $11.4 million in cash and equivalents, against $16.6 million for the year-ago period.

In a separate statement, the company said 40% of its revenue was now coming from off-shore. After New Zealand ($4.6 million), Xero's largest market was Australia ($1.8 million) followed by the UK ($0.5 million).

Xero said it had 51,300 paying business customers.

The interim result was not audited.

On September 21, Xero said it had 50,000 paying customers.

On July 21, at its annual meeting, the company abandoned its goal of breaking even by the end of this calendar year.

Chief executive Rod Drury said it made more sense to focus on growth.

Xero shares [NZX:XRO] were up 3.57% to $2.90 in early afternoon trading. The company's shares have a 52-week range of $1.96 to $3.16.

NBR staff
Fri, 18 Nov 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Xero narrows half-year loss