Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Xero keeps eye on long game, chasing sales as losses widen

Xero keeps eye on long game, will chase sales growth as losses widen

Nov. 14 (BusinessDesk) - Xero, the cloud-based accounting service, posted a wider first-half loss and said it will keep spending to build sales after more than doubling its global customer base.

The loss was $7 million in the six months ended Sept. 30, up from a loss of $3.7 million a year earlier, the Wellington-based company said in a statement. Sales soared 119 percent to $17.3 million, closely followed by a 105 percent jump in operating expenses to $22.8 million.

Xero expects to double operating revenue in the full year, when it will post a second-half loss bigger than the first half loss.

“We have $30.6 million of cash on hand and the ability to raise significantly more cash if required,” said chief executive Rod Drury. “The transition of the accounting industry into the cloud is in full swing and we are very well positioned.

“We believe it is in the best interests of shareholders to continue to grow the business aggressively,” he said.

Xero shares fell 1.9 percent to $6.24. Investors who bought the stock at the start of the year are sitting on a paper profit of 130 percent.

The company plans to embark on new developments including additional tax features for its Australia product, adding payroll in the US and adding to sales teams in Australia, the UK and the US.

The company has one recommendation on Reuters, ‘underperform’ with a price target of $3.93.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO:

New Report: Waitākere Kauri - Look After It, Or Lose It

With no cure for kauri dieback disease and treatment options still being trialled, the Auckland region faces a very real threat – take urgent action in the Waitākere Ranges or risk losing kauri from our forests altogether. More>>

ALSO: