Xero shares are tanking after posting more losses

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Shares in Xero are tanking after the cloud accountancy software group posted full year losses almost double the previous year.

The New Zealand-based group’s after tax loss for the 12 months to the end of March increased 96% to $NZ69.5 million, reflecting rapid customer acquisition through investment in product development, sales and marketing.

However, paying customers grew 67% to 475,000 and subscription revenue jumped 81% to $NZ120.9 million. Total revenue was up 77% to $NZ123.85 million.

Its shares were trading 10% lower at $20.35.

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