Xero's Australian business booms

Last updated 05:00 23/08/2014

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Having its head in the online cloud is paying off for Wellington-based accountancy darling Xero which has almost doubled its customer numbers in Australia over the past year.

The NZX-listed company announced yesterday that it now had more than 147,000 paying customers across the ditch, with moves to generate more growth well in hand.

From September one of Xero's strategic partners, Telstra, will be giving its business mobile customers the opportunity to experience the benefits of cloud computing first hand, by offering eligible customers a six month free trial of Xero.

Xero has also announced a new strategic partnership with CGU Insurance, part of the IAG group which is Australia's largest general insurer. CGU is working with Xero to simplify the task of calculating insurance premiums for Workers' Compensation.

Earlier this month it was reported that Xero's sales grew 81 per cent year-on-year to $23.5 million in the 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 it had expected Xero's cash burn to increase because of 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.

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- The Dominion Post

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