Half year results: Doubling revenue. Accelerating investment.

We’re delighted to present our half year numbers for your detailed perusal. You can download the report here.

We’ve doubled revenue again for the half year and signalled we expect to double revenue for the full year. We’re very proud of creating 130 new jobs over the last 12 months.

The growth in Australia has been remarkable and all countries are performing well.

We have announced that we are investing in a number of new projects including Australian Tax and Payroll for the USA. We will also continue to invest heavily on our platform as we will continue to scale rapidly.

We signal in the report that we have a strong cash position ($30m) and feel very well positioned against the incumbent providers. At around 300 staff today we are still small compared to the incumbents. Intuit as an example has 8000 staff. So we’re not slowing down building our team and will use our cash to continue to invest in capability to provide even more value to our customers and partners.

We’re feeling really good about the business. We haven’t spent a huge amount on marketing but it feels like our brand is building nicely which means word of mouth, accelerated by social networks, is working. We’re aware we still have a lot to do and get a buzz from the positive feedback as well as appreciating direct feedback of what our customers and partners want us to deliver next. The whole team is working hard and really enjoying it.

The board and senior team is laser focussed on getting to the stage where we are a profitable and high margin company but right now the best way to create long term shareholder value is continue to grow. It’s amazing how much change has happened in our industry over the last 5 years and how much more is to come.

If you want to be part of our team please check our careers page. We need more smart and passionate people. We’re creating jobs here. Lots of high value jobs.

As always, please feel free to ask any questions below.

7 Comments

Berend de Boer
November 11, 2012 at 9:25 am

With all that cash, how about spending a little bit on providing a low cost product for low volume charities/no-profits? Life would be so much easier if accounts could move everything to Xero, but $600 NZD a year on just the accounting package is a huge expense.

Berend de Boer
November 11, 2012 at 11:09 am

Yeah, the $600 is with that 25% off. If only the 25% would also apply if you have multiple accounts… Note that charities are often also not GST registered, so it’s a double whammy.

Martin
November 11, 2012 at 11:29 am

Great results Xero

@ Berend: if your organisation is so small that Xero doesn’t save you 18 hours a year (therefore $600 at $33 per hour) then you’re probably better off in Excel anyway.

Trevor Smith
November 11, 2012 at 11:47 am

Great results for Team Xero. Time to add more shares….

I’ve had the pleasure of speaking with several new additions to the US Team and can tell you’re staying diligent in your hiring criteria. Very excited for the future, keep up the great work.

John Younger
November 11, 2012 at 2:01 am

Hi Rod;
Congratulations on the continued growth.
I notice that Craig Walker isn’t listed on page 21 of the release, under “Management”.
Has he left?
Cheers

Craig Walker
November 11, 2012 at 7:12 am

@John Still here!

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