Join

Enter Details

Comment on stories, receive email newsletters & alerts.

@
This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters

Subscribe

Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details


Back to log in

Fintech Xero just became cash positive as it passes 1 million subscribers

Xero CEO Rod Drury. Image: Alex Heber.

Xero, the cloud accountancy software group, has hit positive operating cash flow after increasing revenue by 43% to $NZ295.4 million ($A274 million) for the 2016 year.

Posting its 12 month results to March, Xero says it now has 1.035 million subscribers, a rise of of 318,000 over the year, and $NZ360 million ($A334 million) in annualised committed monthly revenue, more than a third of the way to its target of $NZ1 billion.

The net loss after tax improved by 16% to $NZ69.1 million ($A64 million) in 2016 from $NZ82.5 million ($A76 million).

Source: Xero

“It has been a milestone year for Xero, achieving operating cash flow break-even in the second half of the financial year, and doubling subscriber numbers in less than two years to pass the one million subscriber mark, while completing our major re-platform to Amazon Web Services,” says Xero CEO Rod Drury.

The company has been concentrating on subscriber growth, lifting revenue and operating efficiencies.

“We are making progress in rewiring how businesses work together with more bank feeds, large enterprises connecting to their customers with Xero, and more than 20 million unique connections doing business on our platform,” says Dury.

“The expanding global small business economy is increasingly more important for the overall prosperity and health of the world.

“We anticipate a shift in employment from large enterprises to small business and an increase in part-time employment.”

The 2016 full year results in NZD in detail:

Source: Xero

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.