Xero sees revenue rise 229pc

An aggressive marketing strategy has helped online accounting software provider Xero triple its revenue and its customers over the past 12 months, the company reported yesterday.

More than 1000 accounting firms around the country are now using the online software, chief executive Rod Drury said.

The company expects to "break even" by the end of June next year and will be focusing and investing in the United States market this year.

Xero sells software to customers in 50 countries. Its main customer base is here, Australia and Britain.

The company released its full-year result to the end of March 2010 to the NZX yesterday. It reported operating revenue of $3.2 million, up 229 per cent from $959,000 the previous year year.

It spent $12.9 million on operating expenses, bringing its operating deficit to $9.5 million, slightly more than last year's amount of $7.2 million.

Xero's net interest income to the end of March was $1 million. Its net loss was $8.4 million, which is up from $6.7 million in 2009.

"It's going really well. We raised a lot of money during the year. It's really exciting, starting to see the rates."

Drury said the recession had helped the company because businesses were downsizing and looking for cost-cutting measures.

The software is run through cloud computing, which means accountants and small business owners can see the same information in real time and can update information in real time.

Drury said for small businesses carefully watching their cashflow and bottom line this was an important feature of the software, as they needed to "know exactly where they are".

Xero received $101,000 in government grants from New Zealand Trade and Enterprise to develop its brand overseas.