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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news