Cloud accounting software company Xero has celebrated a spike in paying subscribers while reporting a $76.2 million net loss (NZ$82.5 million) in the 2016 financial year.
The New Zealand-headquartered company's operating revenue grew 67 percent year-on-year along with an improvement to EBITDA margins from -36 percent to -23 percent.
Xero’s subscriber base grew 51 percent during the year to reach 717,000 customers globally. Australia is still the biggest market, accounting for 312,000 subscribers, followed by New Zealand with 186,000, the UK with 133,000 and the US with 62,000.
New markets, including South-East Asia, accounted for 24,000 subscribers.
Software subscriptions accounted for $240 million (NZ$258 million) in annualised monthly revenue, up from $148 million (NZ$160 million) the previous year.
“We have made good progress in the competitive United States market where the accounting industry is at an early stage in its migration to cloud technologies,” said Xero chief executive Rod Drury.
“Our global experience and platform investment benefits us, as the transition to cloud-based business software continues its momentum.”
Total revenue increased 66 percent to $192.5 million (NZ$207 million), up from $115 million (NZ$124 million) the previous year.
Australian-headquartered accounting software rival MYOB reached 170,000 online users in its 2015 financial year, up by 46 percent year-on-year.
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