Xero grows in target markets, but Australia and NZ still bigger

Xero grows in target markets, but Australia and NZ still bigger

Xero has trebled its paying customer base in the key North American market for the year ending 31 March over last year and more than doubled that number in the UK year on year.

Subscription revenue also lifted in both those offshore markets for the year, up 92 percent to $9.8 million in the UK and 154 percent to 3.3 million in the US.

However, those numbers are well outweighed by subscription revenue of $23.2 million at home and $27.7 million in Australia.

Paying customers in New Zealand number 102,000, with 109,000 in Australia, 47,000 in the UK and 18,000 in America.

The US is a target for growth for Xero, having raised $180 million late last year largely to boost its business there. It's also made key senior appointments in that market, with Chris Liddell as chair, Bill Veghte as a US-based director and Peter Karpas as US CEO.

It also recently integrated with US point of sale payments software Square.

"Recruiting senior management for growth and filling out global teams was a key focus for the 2014 financial year as Xero added a further 376 employees," the company says.

Xero finished the year ending 31 March with an 83 percent lift in operating revenue on last year, expecting a full year net loss after tax of about $35 million, bigger than last year's $14.4 million. It now has 758 staff globally and $210 cash on hand.

Total paying customer numbers grew 81 percent year on year to reach 284,000.

"With monthly committed subscriptions growing to $7.8 million, the recurring revenue model means that Xero commences its 2015 financial year strongly with $93 million in annualised subscriptions," it says.