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Xero Australia has announced a 107 per cent growth spike in operating revenue for the year ended 31 March 2015 but globally, net loss after tax jumped by 96 per cent.
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Xero announces triple digit revenue growth
27 April 2015
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The software provider released its unaudited annual results on Friday which reveal Australian customers now exceed 203,000, up 86 per cent from the 109,000 customers at the same time last year.
Of the new customers, Xero said 35 per cent have switched from other accounting software providers.
Globally, subscription revenue grew 88.9 per cent to $109.07 million. Xero’s recurring revenue model means that it commences its 2016 financial year strongly, with $152.03 million in annualised subscriptions, a 79.6 per cent increase on the same time last year.
Despite growth both in operating revenue and customer base, however, the company’s net loss after tax for FY15 increased by 96 per cent to $67.56 million. The net loss is equal to 56 per cent of operating revenue, up from 51 per cent in FY14.
The company puts this result down to increased investment in product development and sales and marketing, with Xero chief executive Rod Drury declaring he is still pleased with the overall result.
“We’re delighted with our achievements this year,” he said. “We focused on adding and integrating 400 talented people to our team for critical mass around the globe. We’re extremely proud to have done that while continuing to drive strong revenue and customer growth across all markets.”
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Chris Ridd, managing director of Xero Australia, said the last 12 months have been particularly exciting for Xero in Australia.
"Xero continued to grow strongly over the past 12 months, showing that small businesses in this country want accounting software they can use anywhere, from any device,” he said.
“Our recent partnerships with NAB and CGU Insurance have enabled small businesses to tap into our vision for smarter financial services. In the case of our recent API partnership with NAB, we are providing small business customers the ability to immediately and automatically link their bank accounts to their Xero dashboard, and open up new possibilities in the future.
“We’re expecting the 2016 financial year will be even bigger than 2015, with a large number of updates planned for our customers,” Mr Ridd said.
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