Xero hits $100 million in annualised revenue
By Suze Metherell
June 16 (BusinessDesk) - Xero, the cloud-based accounting software firm, continued to boost sales last month, with annualised revenue of $100 million for the first time.
Annualised revenue, which Xero recognises on a customer subscription basis, reached $100 million in May, with monthly recurring subscription revenue of $8.6 million, the Wellington-based company said in a statement. That's up from annual revenue of $93 million in March. Xero reported operating revenue of $70.1 million in the 12 months ended March 31.
The company is chasing sales growth in lieu of profit, raising $180 million from investors last year to help fund its aspirations to grab one million customers worldwide, and target the US market for that growth.
Australian customers now exceed 120,000 and UK clients are more than 50,000 with 70 percent of its annualised subscription revenue from outside New Zealand, it said. Xero had 109,000 Australian customers and 47,000 UK clients as at March 31.
In April, Xero said it had slowed its cash burn with its cash outflow at $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.
The NZX-listed company's shares rose 0.5 percent to $29.30 today, and have shed 9.8 percent this year.