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

 


Xero shares climb 11% as cash burn slows in first quarter

Xero shares climb 11 percent as cash burn slows in first quarter

By Paul McBeth

April 30 (BusinessDesk) - Shares in Xero climbed 11 percent after the accounting software developer said it slowed the pace of cash outflow in the first three months of the year.

The stock jumped $3.31 to $33.30 after the Wellington-based company said net operating cash outflow was $5.6 million in the three months ended March 31, slowing from an outflow of $6.5 million in the December quarter, and up from $2.5 million a year earlier.

Cash receipts of $20.4 million were up 13 percent on the preceding quarter, and 79 percent higher than a year earlier. Staff costs rose to $12.1 million, compared to $10.8 million in the December period and $6.9 million in 2013.

Xero’s operating and investing cash outflow fell to $11.8 million from $13.8 million in the December period, and up from $6.6 million a year earlier. The company held $209.9 million of cash as at March 31.

The company raised $180 million from investors last year to help fund its aspirations to grab one million worldwide, and is targeting the US market for that growth. North America accounts for about 6.3 percent of its 284,000 customer base.

Separately, Xero said it has formed an alliance with New York Stock Exchange-listed H&R Block to become the world’s biggest consumer tax services provider’s preferred small business online accounting software service.

“Partnering with the well-known tax company gives it the opportunity to increase its brand awareness in the US and expand its marketing and sales channel to more small businesses throughout the country,” Xero said in a statement.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news