Xero, the cloud-based accounting software developer, burned through cash at a faster pace in the June quarter as it expanded its workforce and more than doubled expenditure on marketing and advertising.
The Wellington company's operating cash outflow more than doubled to $17 million in the three months ended June 30 from the same quarter a year earlier, and widened from the $12.2 million outflow reported in the March period.
Customer receipts jumped 72 per cent to $40.5 million from a year earlier, with staff costs up 66 per cent to $31.8 million and advertising and marketing spending more than doubling to $11.5 million.
The staff costs included $3.7 million relating to annual tax payments on share-based compensation, more than twice the $1.4 million it spent a year earlier.
The company's investing activities reported a cash outflow of $11.5 million in the quarter as Xero bought intellectual property and other current assets, up from the $9 million outflow of the previous year.
