Xero opts for re-investment
Online accounting software provider Xero has announced it will re-invest its cash funds to pursue further growth, particularly in overseas markets, on the back of a tripling of its operating revenue to $9.3 million.
Xero chairman Phil Norman told the company's AGM that although Xero suggested in 2009 that it would break even by the end of this year, it is chosen to pursue investment, as the opportunities overseas are too good to pass up.
"Given the size of the market opportunities available to the company,” Norman says, "and the success Xero has achieved to date, the Board has decided that the continued pursuit of this growth agenda, and particularly the establishment of a strong US presence, is in the best interests of all shareholders.”
Norman went on to reveal that the first step in the investment strategy had already been taken, with Xero purchasing Australian cloud-based payroll provider, PayCycle.
Xero will also enter into a partnership with NZ Post that will see the company’s software linked with new digital posting services.
The number of paying Xero customers has grown from 17,000 in March last year to 45,000, and the firm exceeded $1 million in monthly revenue for the first time in February.
"Xero has now completed its start-up phase and is poised for substantial, value-accretive, international growth,” Norman says.