Xero sales, cash burn rise
Cloud-based accounting firm Xero's sales grew 81 per cent year-on-year to $23.5 million in three months to the end of June.
But its total negative cashflow during the quarter was 47 per cent higher than during the three months to the end of March this year, at $17.3m.
Deutsche Bank analyst Blair Galpin said he had expected Xero's cash burn to increase due to the timing of new hiring, and the figures appeared in line with its expectations.
Xero was required to provide the quarterly update as part of its reporting obligations to the Australian Securities Exchange.
Chief executive Rod Drury forecast at the company's annual meeting last week that Xero would grow its subscription revenue by about 80 per cent this financial year in constant-currency terms.
That compares with constant-currency subscription revenue growth of 94 per cent last year and an actual rise in subscription revenues of 84 per cent.
Staff costs in the three months to the end of June rose 88 per cent year-on-year, and other operating expenses rose by 103 per cent.
Spending on software development rose 85 per cent.
Xero's shares were trading down 0.4 per cent at $25.50 shortly after the announcement.