Xero’s full year 2019 financial results

Today we announced Xero’s full year results including our financial and operating performance to 31 March 2019 (FY19). You can find all the materials here: www.xero.com/about/investors

These results demonstrate continued strong growth and operating discipline across our business. We achieved a significant milestone in FY19 with our first positive free cash flow result of $6.5 million for the year, and a positive bottom line result delivered in the second half, which demonstrates Xero’s improving profitability.

Key highlights include:

• Subscribers increased by 31 percent to 1.82 million
• Operating revenue increased by 36 percent to $553 million
• Free cash flow was positive at $6.5 million, an improvement of $35.0 million
• Positive second half FY19 NPAT of $1.4 million
• The total lifetime value (LTV) of Xero subscribers was $4.4 billion, up 36 percent from the previous year
• EBITDA, excluding impairments, increased by 84 percent to $91.8 million
• Annualised monthly recurring revenue (AMRR) increased by 32 percent to $638 million

For the first time our international subscriber additions exceeded those from Australia and New Zealand, with particularly strong growth in the UK. This illustrates the increasingly global nature of our business and our ability to execute our growth strategy in overseas markets.

As we head into FY20, and beyond, we’re making great progress towards our strategic priority of driving cloud accounting adoption worldwide. We have a genuine commitment to prioritising investment in growth and partnering closely with accountants and bookkeepers to deliver a human-centered experience for our customers.

I want to thank the entire Xero team, our customers and our community of accounting and bookkeeping partners for your support and contribution to Xero and for their ongoing commitment to making life better for people in small business around the world.