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Xero remains optimistic amid NZ$35 million loss

Nermin Bajric | April 4, 2014
Xero expects to finish its 2014 financial year with a net loss after tax of about $NZ35 million.

Xero expects to finish its 2014 financial year with a net loss after tax of about NZ$35 million.

But the accounting software vendor claims it forecasts "strong growth to continue for the foreseeable future," having recorded NZ$70.1 million in operating revenue for the same period, ended March 31. This marks an 83 per cent increase from the previous corresponding period's NZ$38.4 million 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 NZ$210 million of cash to fund future growth.

Xero's monthly committed subscriptions have reached NZ$7.8 million, giving it NZ$93 million in annualised subscriptions as it commences its 2015 fiscal year. NZ, Australia, and the United Kingdom account for NZ$29 million, NZ$41million, and NZ$14million, respectively.

In October 2013, Xero announced it raised NZ$180 million 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.

 

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