BusinessDesk report by Paul McBeth
Xero, whose shares have soared 478 percent in the past year, lifted its customer receipts 14 percent in the final three months of 2013 as it gained more traction, while slowing down the pace of its cash burn.
The Wellington-based company reaped $18 million in customer receipts in the three months ended Dec. 31, up from $15.8 million in the September quarter, and $10.1 million a year earlier, the accounting software developer said in a statement. Staff costs were the single biggest expense in the quarter at $10.8 million, up from $7.2 million in the September period, and $6.5 million a year earlier.
The company’s operating and investing cash outflow was $13.8 million in the quarter, up from $13.1 million in the September period. The 5.3 percent increase was the slowest increase in its cash-burn since it started making the quarterly reports when it joined the ASX in 2012.
“This shows the continued investment Xero is making in building a business for the future to take advantage of the massive opportunity presented by the global small business market,” it said.
The period captures Xero’s $180 million capital raising, leaving it flush with $221.1 million in cash at the end of the period.
Xero is forgoing short-term profits as its chases one million customers worldwide, crossing the 200,000 mark at the end of last September.