Xero boosts revenue, profit remains elusive

Xero has reported a tripling of its income from subscriptions to its hosted accounting software in its results for the year to March 31, released today.

In a statement to the NZ Stock Exchange, Xero announced that revenue from subscriptions was up 229 per cent to $3.158 million, compared with $959,000 for the previous year.

Customer numbers rose from 6,000 to more than 17,000.

However, the increased revenue didn’t translate into a profit, with Xero recording a net loss before tax of $8.4 million, compared with one of $6.75 million the previous year.

Much of the increased loss was due to extra staff being taken on during the 2010 year; Expenses relating to suppliers and employees were $12.8 million, compared with $8.3 million the year before.

Read more at Computerworld.