Xero shares surge as the cloud accountancy player posts another loss

Fiona Goodall/Getty Images
  • Xero’s half year revenue up 37% to $NZ256.5 million.
  • Average revenue per user increased 6% to $31.10.
  • Subscribers grew by 193,000 to 1.579 million.

Shares in Xero jumped after the cloud accountancy player reported a 37% rise in revenue for the first half.

A short time ago, the shares were up 4.7% to $A45.01.

Revenue was $NZ256.53 million ($A240 million), up 37%.

Overall, the ASX100 company’s losses rose 46% to $NZ28.56 million ($A26.60 million).

Growth was driven by subscriber acquisition, adding 193,000 during the half year, taking total numbers to 1.579 million at the end of September.

CEO Steve Vamos says the half year results demonstrate strong top and bottom line results with significant improvements in cash flow margins.

Average revenue per user was up 6% to $NZ31.10 ($A29).

“We remain focused on disciplined execution of our strategy to drive growth while improving financial outcomes through operating efficiencies,” he says.

He says Xero is managing the business to reach cash flow break-even within its current cash balance, without drawing on its debt facility or the $US300 million raised from convertible notes last month.

The half year numbers:

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.