Xero records a bigger loss despite jump in subscribers, revenue

Photo by Stu Forster/Getty Images

Xero has recorded a massive increase in net loss after tax, up 81% to $NZ 44.327 million ($AU 40.9 million) from $NZ 24.471 million ($AU 22.579 million) in the same period the year before.

This despite total paying subscribers jumping to 593,000 at the end of September, up 60% from from September 2014.

Total revenue for the six months to September matched subscriber numbers. Up 71% from the previous year, to $NZ 92.864 million ($AU 85.667 million).

Cash outflows have risen as the company has invested in product and distribution.

Spending on product design and development almost double, up to $NZ 34.454 million ($AU $31.7798 million), from $NZ 17.221 million ($AU 15.884 million) in the same period last year.

Xero plans to make this up as these investments, and economies of scale push up margins.

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

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