Sales up at Xero

Xero says its sales were up 84 percent for the six months to September 30.

The Wellington-based cloud accounting firm operating revenue of just over $30 million, up from $16.5 million for the same period in 2012. That figure does not include revenue for Xero Personal which is due to close in November 2014.

Xero’s strategy puts building the customer base ahead of profitability. During September the number of paying customers rose to 211,000 from 200,000 a month earlier. That number is up 89 percent when compared with September 2012 – a rise broadly in line with the revenue rise.

Australia: fastest growth

The company’s fastest growing market during the six months to September 30 was Australia where the number of customers climbed 143 compared with the same period a year earlier. The number of UK customers was up 99 percent. In New Zealand, where Xero already has a sizeable share of the market, growth was 49 percent.

New Zealand now accounts for about a third of Xero’s business while Australia is around 40 percent of the total. The UK is about 15 percent.

Xero says significant product development is underway with Australian Tax and US Payroll the next to come.