Announces Fiscal 2015 Results
Auckland, April 24, 2015 AEST (ABN Newswire) - Xero Limited (
NZE:XRO) (ASX:XRO) (XROLF:OTCMKTS) continued to deliver exceptional growth for the year ended 31 March 2015, recording operating revenue of $123.9m, up 77% from $70.lm in FY14.
Paying customers grew to 475,000 at 31 March 2015, up 67%, and subscription revenue grew 81% to $120.9m. Xero's recurring revenue model means that it commences its 2016 financial year strongly with $159.3m in annualised committed monthly revenue, a 71% increase on the same time last year.
The Company will continue to invest to fuel growth and scale while maintaining its focus on building a high margin business model. The business maintained a strong cash position with $268.9m of cash at 31 March 2015 to continue to invest in creating long-term shareholder value.
Highlights of the financial year ended 31 March 2015 include:
Revenue
- Subscription revenue of $120.9m, up 81% from $66.9m in FY14
- Constant currency subscription revenue of $122.5m, up 83% compared to FY14
- Operating revenue of $123.9m, up 77% compared with FY14
- Annualised committed monthly revenue (ACMR) of $159.3m, a 71% increase on FY14
Operating Loss
- The net loss after tax for FY15 increased 96% to $69.5m, increasing to 56% of operating revenue from 51% from FY14, reflecting the investment in product development, and sales and marketing
Balance Sheet and Cash Flow
- Cash of $268.9m available to fund future growth and expansion
- During FY15, the Company used $88.4m of cash and cash equivalents in operating and investing activities compared to $48.4m during FY14
- Xero raised $147.2m in March 2015
Business Highlights
- Paying customers increased to 475,000 at 31 March 2015, an increase of 191,000 or 67% compared to 284,000 last year at 31 March 2014
- Xero added 403 employees, and now has 1,161 staff globally to support customer growth across all markets and to scale product development. Xero anticipates a slower rate of employee growth in FY16.
Regional Breakdown
Year ended 31 MarchSubscription revenue 2015 2014 % ChangeNew Zealand 32.6 23.2 41%Australia 56.5 27.7 104%United Kingdom 19.3 10.1 91%North America 7.7 3.3 133%Rest of World 4.8 2.6 85%Total 120.9 66.9 81% Year ended 31 MarchPaying customers 2015 2014 % ChangeNew Zealand 138,000 102,000 35%Australia 203,000 109,000 86%United Kingdom 83,000 47,000 77%North America 35,000 18,000 94%Rest of World 16,000 8,000 100%Total 475,000 284,000 67%
Comment from CEO, Rod Drury
"We're delighted with our achievements this year. We focused on adding and integrating 400 talented people to our team for critical mass around the globe. We're extremely proud to have done that while continuing to drive strong revenue and customer growth across all markets. We have emerged as the cloud accounting leader in three countries and are seeing positive momentum in the U.S. market," said Rod Drury, CEO, Xero.
"Our platform now provides the most comprehensive small business accounting experience for customers, winning against desktop solutions while delivering the benefit of running a business anywhere, anytime, from any device. We have delivered payroll and inventory across all markets, and we will continue to add value to small businesses, accountants and bookkeepers through continued innovation. We are very excited about FY16 and expect strong growth to continue in all our core markets for the foreseeable future."
FY15 Commentary
Xero continues exceptional growth as the leader in cloud accounting in New Zealand, Australia and the United Kingdom, with annualised subscriptions of $39.5m, $74.2m and $25.9m respectively.
Strong growth is expected to continue in these markets, and Xero has focused on building infrastructure to support its expansion in the U.S. market. The U.S. remains a significant and addressable opportunity with the majority of small businesses unserved by cloud accounting software.
Xero is well positioned to meet this need through its complete small business accounting solution, purpose built for the Cloud and mobile devices.
During the second half of the year the U.S. management team formed, led by U.S. President Russ Fujioka. The focus was on ensuring a solid foundation for North America to enable it to scale, and during the second six months customer growth was 300% greater than the first six months.
Xero continued to build its Global Leadership Team appointing Andy Lark as Chief Marketing Officer, Angus Norton as Chief Product Officer, and San Francisco-based Graham Smith was appointed to the Board as a non-Executive Director.
An additional $147.2m of capital was raised in March 2015 from Accel Partners and existing investor Matrix Capital Management, positioning Xero strongly with $269m of cash.
Investor calendar (NZT)
24 April 2015, 9am NZT - Investor conference call
21 May 2015 - Annual Report release
22 July 2015 - Annual General Meeting (Wellington, New Zealand)
19 November 2015 - Half Year Interim Report release
To view the full release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-XRO-422273.pdf
About Xero Limited
Xero Limited (
ASX:XRO) (NZE:XRO) (OTCMKTS:XROLF) is a global company with offices in the United States, United Kingdom, Australia and New Zealand. Xero is the emerging leader in online accounting software, providing business owners with real-time visibility of their financial position in a way that's simple, smart and secure.
For advisors such as accountants and bookkeepers, Xero forges a trusted relationship with clients through online collaboration and gives them the opportunity to extend their services. Xero is a new type of multinational with teams around the world united in our passion to revolutionise small business.
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