The New Zealand-based group Xero, which is disrupting the global accounting software market, has doubled its losses as its grows customers and revenue.
The after tax loss for the 12 months to the end of March increased 96% to $NZ69.5 million, reflecting investment in product development, sales and marketing.
Paying customers grew to 475,000, up 67%, and subscription revenue jumped 81% to $NZ120.9 million. Total revenue was up 77% to $NZ123.85 million.
Xero’s recurring revenue model means that it starts its 2016 financial year strongly with $NZ159.3 million in annualised monthly revenue, a 71% increase on the same time last year.
Xero added 403 employees in the 12 months and now has 1,161 staff globall. The company anticipates a slower rate of employee growth in the new financial year.
CEO Rod Drury says the company has emerged as the cloud accounting leader and is now seeing positive momentum in the US where customer growth during the second six months of the year was 300% greater than the first six months.
“We are very excited about FY16 and expect strong growth to continue in all our core markets for the foreseeable future,” he says.
The US is a significant opportunity with most small businesses unserved by cloud accounting software.
Xero has annual subscription revenue of $NZ39.5 million in New Zealand, $NZ74.2 million in Australia and $NZ25.9 million in the UK.