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

 


Xero annual loss more than doubles to $35 million

Xero annual loss more than doubles to $35 million as staff numbers jump

April 4 (BusinessDesk) – Xero, the cloud-based accounting software company, widened its full-year loss after it doubled staff numbers to drive overseas sales.

New Zealand's second-largest listed company lost about $35 million in the year ended March 31, more than double last year's $14.4 million loss, the Wellington-based company said in a statement citing unaudited figures. The company increased staff numbers to 758 from 382 over the year, it said.

Shares in Xero have soared 229 percent over the past year, making it the best-performing stock on New Zealand's benchmark NZX 50 Index, as it raised new capital and added workers to expand in the US, the world's largest economy. Xero had $210 million of cash to fund its growth, up from $78 million a year earlier, it said today.

"Recruiting senior management for growth and filling out global teams was a key focus for the 2014 financial year as Xero added a further 376 employees," the company said. "Xero expects strong growth to continue for the foreseeable future."

In the past year, Xero's subscription revenue increased 84 percent to $66.6 million. Australian subscription revenue rose 120 percent to $27.7 million while New Zealand revenue increased 48 percent to $23.2 million and UK revenue was up 92 percent to $9.8 million.

"With strong growth expected to continue in these markets, Xero turns its focus on the important US market," the company said.

In the past year, North American subscription revenue increased 154 percent to $3.3 million.

Total operating revenue rose 83 percent to $70.1 million, Xero said. The strong New Zealand dollar had reduced the returns it receives from overseas as 66 percent of operating revenue is in foreign currencies and on a constant currency basis, operating revenue rose 92 percent, it said.

Shares in Xero last traded at $37.20 and the stock is rated an average 'hold' according to analysts polled by Reuters.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news