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Xero piling on customers
Philip Macalister, Friday, 15 May 2009 07:44
Listed accountancy software firm Xero (NZX:XRO) says there was a pick up in new customers at the start of this year, however it still made a loss for the full financial year.
In its recently released results for the 12 months to March 31, it reported revenue had increased 616% from the previous year to $959,000, and payments to suppliers and employees was up 52% to $8.36 million. Overall the company recorded a net loss of $6.75 million.
While the numbers may lot look that flash the company still has $3.8 million of cash, and it reports that "revenue was significantly weighted towards the last quarter of the period as Xero customer acquisition accelerated."
It says that it doubled its customer base in the first three months of 2009.
In its annual result it say the number of customers has increased from 950 to more than 6,000 in the past 12 months and that 2,000 of these customers are in the United Kingdom.
The company has had a number of wins and continues to release software every month.
It says NAB, ANZ and Commonwealth Bank are providing automated bank feeds to Australian Xero customers. A global version of Xero was released in December and a PayPal link has been embedded with Xero invoices for online payments.
Another highlight has been the integration of fixed assets and depreciation features in the package which it says fulfils one of the major requests from accountants.
Also to help accountants it has included features that enable accountants to manage large numbers of their clients.
Xero says the current economic climate is good for its business as almost all businesses require an increased focus on cashflow.
"Xero helps businesses to have accurate, timely and up-to-date financial information. - In order for banks to roll over credit facilities, many are now demanding monthly management accounts. Xero facilitates cost-effective collaboration between small businesses and their accountants."
Since balance date Xero has successfully raised $23.2 million in new capital from strategic investors.
Read more about XERO here
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