Xero, the cloud-based accounting software developer, slowed its quarterly cash burn during July to September as customer receipts rose more quickly than its wage costs.
The Wellington company said its operating cash outflow shrank to $6.3 million in the three months ended September 30, from $9.6 million in the same period a year earlier. Customer receipts climbed 73 per cent to $48.2 million, outpacing a 43 per cent increase in staff costs to $28.2 million.
The company spent $14.6 million on investing activities, most of which went into acquiring intellectual property, and was up from $13 million a year earlier.
"Operating cash flow improvements have been driven by strong revenue increases and operating efficiencies which have allowed investments in distribution channels and product development to drive sustained global customer and revenue growth," said the company.
Xero has been a pioneer on the local stock exchange for software-as-a-service firms forgoing short term profits in a bid to create a global business and has attracted major US investors , pumping in another $147 million in March this year.
