Xero predicts 84 per cent revenue growth

Xero predicts 84 per cent revenue growth

Firm expects operating revenue to exceed NZ$30.3 million in first half FY14

ASX-listed New Zealand-based accounting software firm is expecting to almost double its revenue in the first half of this financial year off the back of rapid growth in its customer base.

The company is expecting operating revenue to exceed $NZ30.3 million, up 84 per cent from $NZ16.5 million on the corresponding period for the previous year.

The announcement noted that figures had been adjusted to remove Xero personal revenue, which is deemed to be a discontinued operation.

In the last six months, the vendor has strengthened its management capacity in each market to ensure it had the right leadership capability to drive and manage continued rapid growth.

It now has 211,300 paying customers, up 89 per cent from 111,800 compared to the previous year.

The number of staff grew from 278 to 584, while it holds $55 million in cash and has 8800 bookkeeping partners globally.

The annualised committed monthly revenue is $70.6 million, which is made up of New Zealand $23.9 million, Australia $30.2, UK $10.2 million and US $6.3 million.

The company said new product development and support teams had been created and that significant new product development was underway.

"These include Australian Tax, for which the first phase has been delivered, and US Payroll, which received a positive response at our US accounting partner conference last month," the company said in a statement.

"US Payroll is an additional revenue opportunity and will launch by the end of this year.

"The success of recent accounting partner conferences in Australia, US and UK, an expanding partner channel, and performance relative to competitors, gives the company confidence in its ability to drive growth by continuing investment in sales, and marketing and product development."

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