Xero Limited Stock Market Press Releases and Company Profile
Finishes Year Up 83% to NZ$70m
Finishes Year Up 83% to NZ$70m

Melbourne, April 4, 2014 AEST (ABN Newswire) - Xero Limited (googlechartNZE:XRO) (googlechartASX:XRO) announces operating revenue of NZ$70.1m for the year ended 31 March 2014, up 83% up from last year's NZ$38.4m result.

With monthly committed subscriptions growing to $7.8m, the recurring revenue model means that Xero commences its 2015 financial year strongly with $93m in annualised subscriptions (representing an 81% increase on the $51.5m reported at the same time last year).

The net loss after tax for the second half of the year ending 31 March 2014 is anticipated to be similar to that reported for the first half resulting in a full year loss of approximately $35m, compared to $14.4m last year. Xero has expanded its team to 758 employees and has $210m of cash to fund its growth.

The strong New Zealand dollar adversely impacts reported operating revenue given 66% of this revenue is denominated in foreign currencies. On a constant currency basis Xero grew operating revenue by 92% in the period.

Commentary

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.

Xero is now the leading accounting software provider in New Zealand and the leading online accounting software in Australia and the United Kingdom, with annualised subscriptions of $29m, $41m and $14m respectively.

With strong growth expected to continue in these markets, Xero turns its focus on the important US market. The US market entry phase was completed successfully, allowing Xero to raise an additional $180m of capital in October 2013, bolstering the Board with appointments of New York-based Chris Liddell as Chairman and San Francisco-based Director Bill Veghte and appointing Peter Karpas as CEO North America.
Xero has been receiving US industry recognition, including: Accounting Today's 2013 Top New Products: Honorable Mention - Xero Touch, Mobile category; CPA Practice Advisor's 5-Star review 2013 (for Software as a Service); and "Top Choice" for the best online business accounting app by PC World/ Macworld.

Xero has also made progress on a number of large scale partnerships, and has recently announced integration with Square, Inc. in the US.

Xero has proven its strategy and execution and continues to build a world-class team, while substantially growing revenue.

Progress against the incumbents and its strong cash position places Xero at the forefront, as the adoption of cloud software accelerates for small business solutions.

Xero expects strong growth to continue for the foreseeable future.

Investor calendar
22 May 2014 - Annual Report release
23 July 2014 - Annual Meeting
20 November 2014 - Half Year Interim Report release

To view financial figures, please visit:
http://media.abnnewswire.net/media/en/docs/76874-ASX-XRO-404580.pdf


About Xero Limited

Xero Limited (ASX:XRO)Xero Limited  (ASX:XRO) (NZE:XRO) (OTCMKTS:XROLF) is a global company with offices in the United States, United Kingdom, Australia and New Zealand. Xero is the emerging leader in online accounting software, providing business owners with real-time visibility of their financial position in a way that's simple, smart and secure.

For advisors such as accountants and bookkeepers, Xero forges a trusted relationship with clients through online collaboration and gives them the opportunity to extend their services. Xero is a new type of multinational with teams around the world united in our passion to revolutionise small business.

abnnewswire.com 


Contact

Rod Drury
Xero CEO
rod.drury@xero.com
TEL: +64-27-6000-007

Ross Jenkins
Xero CFO
ross.jenkins@xero.com
TEL: +64-21-963-909



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