Xero doubles revenue, customers

Xero has released its annual report for the year to March 31 2012, showing increases in revenue and customer numbers of over 100%, but also showing a slight increase in overall losses caused by a 58% jump in expenses.

The company has no shortage of cash, growing its reserves from $16.9 million to $39 million after raising capital from investors at the start of this year.

Even so, overall losses were $7.9 million, a slight increase on the $7.5 million lost in the previous 12 months.

Xero has indicated it will pursue a growth strategy in the short term rather than looking to get into the black, and with over half of the company's monthly revenue now coming from outside New Zealand the approach appears to be working.

Overall revenue grew 107%, from $9.3 million to $19.3 million, but expenses grew 58%, from $18 million to $28.4 million – mostly thanks to an increase in headcount, from 113 employees to 194.

The number of customers using Xero's software around the world rose from 36,000 to 78,000.

In his remarks on the results, Xero CEO Rod Drury says the company is in a strong position to continue its expansion.

"We'll continue to build the business to support customer acquisition in large overseas markets," Drury says, "and with a goal of gaining a million customers, we'll continue to invest in our internal infrastructure, systems and personnel around the globe.

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