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Xero founder Rod Drury is totting up the early numbers from his start-up accounting software firm, saying they are small but better than expected at the end of its first year.
The company had expected to have 1300 small businesses using its software but one year after the offer document 1406 small business customers are paying monthly fees.
The NZX-listed firm recorded a loss of $4.3 million for its first year to March 31 with revenue of $143,000.
Drury acknowledged the tiny scale for a company that is trying to break the dominance of competitors such as small business software firm MYOB in Australasia.
The solid start had removed some of the risk factors and Drury said revenue would accelerate while costs would remain similar.
Shares in the company, with a market capitalisation of $45 million, increased by 5c yesterday to close at 83c.
The cash balance on May 10 was $8,991,000 up $613,000 on forecasts, Drury said.
Drury said Xero initially found it difficult to reach customers in the UK market but forming a relationship with accounting firms had played a role in boosting clients and ensuring monthly revenue.
Drury said: "As we release technology we will move up the food chain to slightly bigger businesses."
