Small business accounting Software-as-a-Service firm Xero released its half-year financial results Monday (Nov. 9), and the results were pretty mixed.
According to reports by CRN, Xero saw a $40.1 million net loss — millions more than its net loss experienced during the same period a year before. Xero Chief Executive Rod Drury said the figures are a result of “increased investment in product development and distribution channels,” hinting that these investments would eventually pay off with “long-term value creation.”
But the figures weren’t all bad. Reports said Xero reported a 60 percent gain in its subscription base, now reaching nearly 600,000 worldwide as of the end of September, compared to the same six-month period a year before. Year-on-year revenue also jumped by 72 percent, the Australian company noted.
“Xero delivered strong global growth while improving operating metrics, reflecting positive overall business performance,” Drury stated.
The company added that it is on track to see more than $130 million in revenue from its subscribers this fiscal year (based on June 2015 exchange rates). Much of this growth, Drury said, stems from its small business client base.
[bctt tweet=”Xero is on track to see more than $130 million from its subscribers this fiscal year.”]
“While early SaaS companies have been focused on medium-to-large enterprises, our connected ecosystem gives us access to the global small business market, positioning us to maintain strong growth rates for an extended period of time and drive further revenue monetization opportunities,” he stated.
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