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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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