Xero Reports Revenue Growth of 36% in the FY 2019
Cloud based accounting software company Xero reported an increase of 36% in its operating revenue to NZ$552.8m for the financial year ended March 31, 2019.
Xero’s customer base in the UK increased by 48% to 463,000 and that too in a single year. The increase in number of subscribers during the FY 2019 also contributed towards the 50% increase in UK revenue which was reported to be £62m.
New international user numbers hit 239,000, overtaking those from New Zealand and Australia for the very first time, with around 151,000 new subscribers signed up in the United Kingdom.
However, despite the growth in operating revenue and subscriber numbers, the company reported a net loss of NZ$27.1m for the financial year ended March 31, 2019. The net loss of the company for the FY 2019 increased by NZ$2.2m as the software provider had reported a net loss of NZ$24.9m in the previous year. The company said that the net loss of NZ$27.1m was mainly due to the impairments that were recorded in the first half of the FY 2019 as the company reported a net profit of NZ$1.4m in the second half of the said financial year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 52% during the FY 2019.
The software provider also made a number of acquisitions during the financial year ended March 31, 2019, which included Instafile (a UK tax filing tool) and Hubdoc, a data capturing solution.
Steve Vamo, CEO at Xero, said that we have ended the FY 2019 with strong numbers and also achieved a number of major milestones including the UK business adding more than 100,000 new users within a six month period in addition to our first positive free cash flow result.
He further said that as we head into the Fiscal year 2020, we are making great progress with regards to our strategic priority of driving adoption cloud based accounting around the world. We have a competitive edge as we prioritize growth, and partner closely with bookkeepers and accountants, to provide our users with a more human-centered technology experience especially for small businesses.