Hot Topic Reporting season
Hot Topic Reporting season
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Xero passes the 100,000 subscriber milestone in Britain

But investors most want to know how it's doing in the United States.

Jenny Ruth
Thu, 01 Oct 2015

Accounting software company Xero [NZX: XRO] says it has passed a significant milestone in Britain where it now has 100,000 subscribers.

That’s up from 83,000 at the end of March, which was a 77% increase on a year earlier.

“Two years ago, we reached 30,000 subscribers in the UK and we celebrate constant growth to achieve the significant milestone of 100,000 subscribers in the UK,” says founder and chief executive Rod Drury.

“In that time, we solidified our position as the UK’s leading cloud accounting platform.”

In May, the British encumbent accounting software company, Sage, said it had more than 550,000 subscription contracts, although that figure would have included its desktop product and Xero operates solely in the cloud.

In July, Sage said its “organic software subscription” revenue grew 34.2% in the three months ended June.

In August, Xero said it had passed 400,000 subscribers in Australia and New Zealand after announcing at its annual shareholders’ meeting in July that it had passed 150,000 New Zealand subscribers.

However, investors are most interested in Xero’s progress in the United States.

The last word from the company was that it had 35,000 US subscribers at the end of March, up from 18,000 a year earlier.

Earlier this month, Xero announced it had updated its securities trading policy for directors, officers and employees, including a reminder not to trade, or encourage others to trade, in Xero shares if that person has material information.

That followed the Financial Markets Authority’s announcement that it’s investigating trading in Xero shares in February ahead of its $147.2 million capital raising.

The capital raising was announced on February 25 after the shares had risen from $16.40 on February 17 to $19 on February 19.

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Jenny Ruth
Thu, 01 Oct 2015
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Xero passes the 100,000 subscriber milestone in Britain