Source: Radio New Zealand
Xero said the deal weighed on statutory profit as the company moved from a net cash to a net debt position. RNZ
Xero has reported record full‑year revenue, even as net profit fell due to acquisition costs.
Key numbers for the year ended March compared with a year ago:
- Net profit after tax $167.4m vs $227.8m
- Revenue $2.75 billion vs $2.1 billion
- Underlying earnings (EBITDA) $789.5m vs $638.5m
- Gross margin 83.9 percent vs 89.0 percent
- Dividend: none
Accounting software firm Xero said revenue rose 31 percent to $2.75 billion, driven by strong customer growth and accelerating expansion in the United States.
The company added 506,000 customers over the year, taking its total customer base to 4.9 million worldwide.
Underlying earnings increased 24 percent to $789 million, while free cash flow rose 9 percent to $554 million.
Chief executive Sukhinder Singh Cassidy said the result reflected disciplined execution across Xero’s key markets.
“Our strong full‑year results demonstrate Xero’s disciplined execution and macro‑resilience,” she said, pointing to accelerating growth in the US following the integration of payments platform Melio.
Chief executive Sukhinder Singh Cassidy. Supplied/Xero
Reported net profit after tax fell 27 percent to $167 million, largely due to transaction costs, higher financing expenses and operating losses associated with the Melio acquisition, completed in October.
Xero said the deal weighed on statutory profit as the company moved from a net cash to a net debt position.
Growth was broad‑based, with revenue in Australia and New Zealand up 18 percent, the UK up 26 percent, and US revenue surging, supported by Melio and strong organic growth.
Singh Cassidy said Xero was positioning itself for longer‑term growth, particularly through artificial intelligence.
“With proprietary data and trust as our foundation, Xero is well positioned to be a long‑term AI winner.”
Xero does not pay a dividend, preferring to reinvest cash into growth.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand