Xero loss grows as staff hired

Xero chairman Chris Liddell. Photo / Richard Robinson

Sales up 79% as software firm eyes US listing.

Cloud-based accounting firm Xero widened its first-half loss after spending more on staff and marketing.

The Wellington-based company's loss swelled to $24.5 million in the six months ended September 30, from a loss of $17.1 million a year earlier.

Sales rose 79 per cent to $55.8 million, as its subscription revenue increased 85 per cent to $52 million.

In the period it boosted staff numbers 70 per cent to 993 employees, while its customers increased 76 per cent to 371,000. Its annualised, committed monthly revenue rose 87 per cent to $132.3 million.

The software developer wants a million customers, and is targeting growth in the United States market.

In terms of its North America segment the company said: "Xero did not execute to plan. Key leadership changes are being made in the region and Xero expects to accelerate growth over future periods."

The company is eyeing a US listing after it reaches annual revenues of US$100 million, expected in this financial year, and has tapped former Microsoft chief financial officer Chris Liddell as chairman.

As at September 30 it had $170.8 million cash on hand.