Xero FY loss widens 9%

XERO’S share price has jumped after the NZ-based accounting software firm cut its underlying full-year loss by 63 per cent.

Xero’s statutory loss widened 9 per cent to $NZ27.1 million ($A25.67 million) due to the $NZ16.3 million first-half it made against its US payroll product.

But operating revenue for the 12 months to March 31 increased 36 per cent to $NZ552.8 million thanks to a 31 per cent rise in subscriber numbers. Stripping out the impairment, the ASX-listed firm’s loss fell 63 per cent to $NZ8.54 million.

Shares in the company rose 7.09 per cent to $58.16 yesterday morning, up 46 per cent from $39.79 a year ago.

Chief executive Steve Vamos said Xero was making progress in driving cloud accounting adoption globally, including adding 100,000 subscribers in the UK over the past six months.

“We have a genuine competitive edge by prioritising investment in growth, and partnering closely with accountants and bookkeepers, to deliver a human-centered technology experience for small business communities across the globe,” he said.