Half year results

Running a public company you think in 6 monthly increments.  All the work during the period ends up in black and white and out in the market.  There is no hiding and it’s not for the faint hearted. There is no getting off the merry-go-round.

But in today’s 1/2 year results I think we’ve demonstrated that our strategy is working. Here are the highlights …

  • Near tripling of half year operating revenues from $1.3m to $3.7m. This compares with 2010 full year revenues of $3.4m. Annualised subscriptions are running at approximately $9.0m.
  • Successful recruitment to resource our operating model in New Zealand, Australia and the UK lifted headcount from 73 to 101 and therefore a planned rise in operating costs to $7.9m – up 59%.
  • Net loss of $4.7m – an increase of 24%, is expected to be the maximum loss incurred as the company drives toward break-even.
  • Cash at bank of $16.6m as at 30 September 2010 – excludes $4m additional monies raised by the Peter Thiel strategic placement in October. Xero anticipates having significant cash reserves at its planned break-even point.

You can read the full announcement here: Xero half year announcement

8 Comments

Campbell Yule
November 11, 2010 at 9:06 am

Great news and great progress

Carl
November 11, 2010 at 9:33 am

Great work! does the 27,000 figure include personal customers?

Richard Francis
November 11, 2010 at 9:36 am

Well done – tipping point time methinks…:)

Jono
November 11, 2010 at 9:57 am

@ Carl

“As at the date of this release, the company had 27,000 paying business customers.” – I would say personal customers are not part of this count

Robert Bell
November 11, 2010 at 10:09 am

Excellent to see strong growth and solid futures.

Carl
November 11, 2010 at 10:25 am

Cheers Jono, thats what I get for skimming…

Thats fantastic!

Tobin Harris
November 11, 2010 at 11:08 am

Amazing, and deserved, your product & support is perfect.

Hamish White
November 11, 2010 at 3:01 pm

Well done Team Xero! Just the start of great things I’m sure.

If only I recorded what my office manager said about ten days ago – someone who, despite my encouragement, was hugely reluctant to make the change from MYOB. Her words “I love Xero. GST has never been easier!”.

Half her reluctance was from fear of making herself redundant. The fact is that she is now busier than ever, working on other things that add so much more value to the business. We also have information so much more readily available.

A very satisfied customer and shareholder.

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