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Xero raises revenue, narrows net loss

NZN 10/05/2017 Rebecca Howard

Xero, the cloud-based accounting software firm, has narrowed its full-year loss as revenue gained.

Xero said its operating revenue was $295.4 million in the 12 months ended March 31, up 43 per cent on the year earlier.

Its net loss was $69.1m, 16 per cent narrower than the $82.5m reported in the prior period. In constant currency terms, operating revenue was up 51 per cent.

Its loss on an earnings before interest, tax, depreciation and amortisation basis narrowed to $28.6m from $59.9m in the prior 12 months.

The company said it now has 1,035,000 subscribers, after adding 318,000 over the past year.

Xero did not give any specific guidance other than to say operating metrics are expected to improve in the 2018 financial year as the company drives efficiencies through automation and economies of scale.

It also noted that cash usage in 2018 (based on foreign exchange rates at April 1, 2017) is forecast to reduce from the 2017 financial year. In the current financial year operating cash outflow reduced to $4.4m from $34.8m in the prior year.

The company's shares advanced 0.9 per cent to $22.05, having gained 25 per cent this year.

(BusinessDesk)

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