Meanwhile, contribution margin in the more developed Australia and New Zealand market increased from 22 percent in H1FY15 to 27 percent in H1FY16, while continuing investments to drive operating revenue growth reached 59 percent.
Xero has also attracted top global talent to its board and executive teams across the world, while aligning for global execution.
As pointed out by Drury, this includes the completion of the CFO transition to Sankar Narayan as well as the alignment for growth by broadening the responsibilities of CMO, Andy Lark, to encompass global marketing, sales, partnerships and education.
As reported by Computerworld New Zealand, the company recently accelerated automation and big data innovation under Tony Stewart who was this week appointed to the newly established role of Chief Data Officer.
“Over the past year, cloud market adoption has accelerated and Xero has strengthened its market position, continuing to be one of the fastest growing SaaS companies in the world,” Drury adds.
“With more than half-a-million subscribers using Xero globally, Xero continues to set the industry pace for innovation, grow market share and broaden its total addressable market.”
In the first half of this year Drury says Xero has continued to grow the team and its capability, with "disciplined investments" in product and distribution channels, while delivering another period of strong growth in new subscribers.
Operating metrics are expected to improve, adds Drury, as the company continues to drive efficiencies through automation and economies of scale in cost-to-serve, customer acquisition and product development.
“We’ve achieved strong growth for the first half and we’re on track to achieve $200 million subscription revenue based on June 2015 foreign exchange rates this financial year,” Drury adds.
“Xero is focused on containing its full financial year cash outflow to similar levels to the prior financial year.
“This growth as well as the rigour that we have established within the business positions Xero for long term value creation.
“While early SaaS companies have been focussed on medium-to-large enterprises, our connected ecosystem gives us access to the global small business market, positioning us to maintain strong growth rates for an extended period of time and drive further revenue monetisation opportunities.”