Xero on target for sales growth

Last updated 16:20 31/01/2014

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Xero is just on target to achieve the annual sales growth chief executive Rod Drury's forecast at the company's annual meeting in August, with results now in for the first three-quarters of its 2013-14 financial year.

The company today reported sales of $18m for the three months to the end of December, up 78 per cent on the same quarter in 2012.

Sales for the year to date totalled $46.7m, up almost exactly 80 per cent.

Drury's forecast was for "at least 80 per cent" growth for the full year.

Costs increased at a faster rate, totalling $25m for the quarter, more than doubling from $11.6m in the same quarter in 2012.

So far this year, Xero's costs have added up to $64.2m, up almost exactly 100 per cent.

The company said it was investing "to take advantage of the massive opportunity presented by the global small business market".

It ended the quarter with $221.1m in cash, having raised $180m from a share placement in October.

Its shares were up 1.8 per cent in mid-afternoon trading, valuing the company at just under $5.3 billion.

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