Xero shares up 4% as annual sales double
Online accounting software updates on customer numbers - but offers no earnings guidance.
Xero, the cloud-based accounting platform provider, has doubled its annual sales and accelerated growth in customer numbers.
The Wellington-based software business boosted revenue to $19.3 million in the 12 months ended March 31 from $9.3 million a year earlier, it said in a statement to the NZX.
That comes after it doubled its customer base to 78,000 from 36,000 in the period. Its committed monthly revenue rose 51% to an annualised $25.5 million.
The company, which last year abandoned its goal to break-even by the end of 2011, didn’t give guidance on earnings.
Investors did not seem worried by the ommission.
Xero was [NZX:XRO] up 4.17% to $4.00 in midday trading - giving the company a market value of $404 million, according to S&P Capital IQ.
The stock has gained 45% this year, having closed at $3.80 yesterday.
“For the full 2013 year, New Zealand, Australia and the UK will be the growth engines for the company,” chief executive Rod Drury said.
“Entry into the US market is progressing well as the company executes its plan and works with early adopters.”
Drury said its key objectives for the US this financial year are to make inroads into rival Intuit’s key accounts, build its team in the US and deliver new product features.
Australia led customer growth up 166% to 16,000, followed by the UK rising 120% to 11,000 clients.
New Zealand’s customer base climbed 104% to 47,000 customers, while the US market grew 100% to 4000.
Hannah Lynch and NBR staff
Tue, 03 Apr 2012
Tue, 03 Apr 2012
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Xero shares up 4% as annual sales double
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