Xero has announced their First-half fiscal-year 2019 results covering their financial and operating performance to 30 September 2018 (H1 FY19).
Globally, Xero has reached 1.6 million subscribers, adding 380,000 in the past year. Net Subscriber additions during the half year (reporting period) was 193,000 as of September 30, 2018. It should be noted that the net subscriber additions before inclusion of acquired Hubdoc subscribers was 174,000.
Source: Adapted from Xero Source Documents
Xero-20181H_subscriber-growth
Xero's revenue was up 37% to $256.5-million (NZD), representing a 33% increase based on constant currency (CC). Annualized Recurring Revenue rose to $589.1-milion (NZD), and the Average Revenue per User increased by 6% from 30 September 2017 to $31.1 (NZD).
Adapted from Xero Source Documents
Xero-20181H_AMRR
In North America, Xero has reached 178,000 subscribers, adding 68,000 in the past year for 62 percent year-over growth (excluding the addition of Hubdoc, Xero added 49,000 subscribers for 45 percent year-over-year growth). North American revenue was up 40 percent.
Adapted from Xero Source Documents
Xero-20191H_Regional-subscriber-illustration
Major activities undertaken during the reporting period included:
- Hubdoc Acquisition, which will accelerate Xero’s global product strategy by boosting the ability to automate the flow of data so that accountants and bookkeepers can focus their efforts on making sense of a small business’ financial data – not collecting it.
- Partnership with Gusto Payroll to deliver full-service payroll across all 50 US states. New pricing plans that reflect this partnership went live this week, helping customers unlock the full value of the Xero platform.
- Securing $300M (US) in capital for use in targeted acquisitions and investments to enhance and extend the Xero platform.
Keri Gohman will assume a new role as Chief Platform Officer and will focus on accelerating Xero’s progress in becoming a global platform business. Keri’s team will focus on three major priorities:
- Financial services: nurturing Xero’s relationships with financial institutions to deliver better outcomes for small businesses -- for example, helping them get paid faster, and get access to capital when they need it.
- The Xero ecosystem: ensuring that customers benefit from a seamless experience with third party apps, and ensuring that developers have the tools and resources they need to build successful businesses on the Xero platform..
- Data: finding new ways to innovate on behalf of customers with the rich data that flows through the Xero platform.
For more information about Xero's financial and operational performance during their first-half of their 2019 Fiscal Year, see earnings highlights here.
Editor's Disclosure - all currency figures represent New Zealand Dollars unless otherwise noted. All figures are taken from Xero provides source documents available for public/investor inspection. Graphics and other illustrations used herein have been adapted by Insightful Accountant from Xero source documents (published within the public domain).