Xero revenue grows 83%, loss reaches NZ$35 million

Cloud accounting software developer Xero has announced operating revenue of NZ$70.1 million for the year ended 31 March 2014 and a net loss after tax of around $35 million.

Operating revenue was up 83% up from last year’s $38.4 million. The net loss after tax of approximately $35 million, compares with$14.4 million recorded last year, after Xero expanded its headcount by 376 to a total of 758 by the end of 2014.

The company said it has $210 million of cash to fund growth.

Xero said monthly committed subscriptions have grown to $7.8 million, meaning the New Zealand listed company begins the new financial year with $93 million in annualised subscriptions, up 81% on $51.5 million at the same time last year.

A strong New Zealand dollar has not helped trading, it said, as 66% of Xero's revenue is denominated in foreign currencies.

Xero said it is the leading accounting software provider in New Zealand and the leading online accounting software in Australia and the United Kingdom. Earlier this week it announced an alliance with KPMG in the UK to deliver its systems to SMEs there.

Xero said strong growth is expected to continue in these established markets and it is now turning its focus on to the US market.

Xero raised $180m in October 2013 and made new board appointments, including New York-based expat New Zealander and former Microsoft and GM CFO Chris Liddell as Chairman and San Francisco-based director Bill Veghte as well as appointing Peter Karpas as CEO for North America.