Xero remains optimistic amid $NZ35m loss
- 04 April, 2014 08:56
Xero expects to finish its 2014 financial year with a net loss after tax of about $NZ35 million.
But the accounting software vendor claims it forecasts “strong growth to continue for the foreseeable future,” having recorded $NZ70.1m in operating revenue for the same period, ended March 31. This marks an 83 per cent increase from the previous corresponding period’s $NZ38.4m result.
The value of the NZ dollar impacts the reported revenue, with 66 per cent of it denominated in foreign currencies. Xero said in its NZX filing that on a constant currency basis, it grew operating revenue by 92 per cent in the year.
Fiscal 2014 saw Xero expand its global team to 758 employees. It said it has $NZ210m of cash to fund future growth.
Xero’s monthly committed subscriptions have reached $NZ7.8m, giving it $NZ93m in annualised subscriptions as it commences its 2015 fiscal year. NZ, Australia, and the United Kingdom account for $NZ29m, $NZ41m, and $NZ14m, respectively.
In October 2013, Xero announced it raised $NZ180m to build its US-based team, while supporting wider global growth. Having completed its entry phase, the vendor intends to turn greater focus on the US region.
Earlier this month, Xero announced it won a contract with Californian merchant services aggregator, Square, through which it expects to grow its footprint by integrating its customers’ accounts with those of Square’s.