Xero's shrinking losses

Although online accounting vendor Xero may still be in the red, growth overseas and a solid base at home position the company as the 'emerging global leader in the online accounting market', the company has told the NZX in its half-yearly statement.

Xero suffered a net loss of $3.7 million for the six months to September, compared with a $4.7 million loss in the same period of 2010.

However, operating revenue was up significantly, from $3.7 million to $7.9 million.

The company has doubled its paying business customers to over 50,000, and with the opening of its San Francisco office is now operating across four countries with 140 staff, the report says.

New Zealand is the biggest revenue contributor with $4.6 million; Australia ($1.8 million) and the UK ($1.1 million) are second and third.

Xero announced in July that it would forego the opportunity to achieve profitability this year, instead choosing to re-invest its cash funds pursuing growth overseas.

The company also scored a $4 million government R - D grant in August.

"The board is pursuing a growth agenda that provides the flexibility to pursue opportunities that create shareholder value, rather than short-term profitability," the report reads.

"The company is comfortable with its ability to fund continued growth and execute with excellence.

In bad news, both chairman Phil Norman and co-founder Hamish Edwards have announced they intend to resign from the company's board of directors.

Current director Sam Knowles has assumed the role of chairman.