Xero's revenue is up 67% but it's still losing money

Xero CEO Rod Drury. Image: Alex Heber.

Xero’s full-year revenue is up 67% to NZ$207 million and more subscribers were added than in any other year, but profits are still distant as the cloud accountancy group goes for growth.

The platform posted an 18% rise in losses to NZ$82.46 million for the year to March.

Paying subscriber numbers increased by 242,000 to 717,000, making it Xero’s biggest customer acquisition year.

“Our revenue growth and improved operating metrics are a testament to the quality of our product and execution of our global growth strategy,” said CEO Rod Drury.

Source: Xero

“Xero has well and truly become the heart of thousands of small businesses around the world. We have extended our position globally, and lead the small business cloud accounting software market in Australia, New Zealand and the United Kingdom by subscriber numbers.”

The company reported strong international growth with 133,000 subscribers in the UK 62,000 in North America. Xero has opened its first Asia region office in Singapore.

Xero has more than 1,450 employees across 20 offices around the world.

The company says its operating metrics will continue to improve in 2017 as the company drives efficiencies through automation and economies of scale.

Xero shares were down 0.76% to $14.38 shortly after the open, broadly in line with the ASX200 which was down 0.54%.

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