BusinessPostCorner.com
No Result
View All Result
Saturday, June 28, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Xero reports 28% year over year growth

May 19, 2023
in Accounting
Reading Time: 2 mins read
A A
0
Xero reports 28% year over year growth
ShareShareShareShareShare

Accounting solutions provider Xero reported its full year earnings to March 31, 2023, saying the company delivered revenue growth of 28% (25% in constant currency terms), contributing to an increase in adjusted EBITDA of 45% compared to fiscal year 2022 to $301.7 million.

This drove a significant increase in free cash flow to $102.3 million, which reflects a free cash flow margin of 7.3% compared to 0.2% in FY22.

The company further elaborated that operating revenue increased to $1.4 billion, which reflects ongoing subscriber growth and average revenue per user (ARPU) improvement. Annualized monthly recurring revenue grew by 26% to $1.55 billion (23% in constant currency terms). Total LTV, which grew 23% (21% in constant currency) to $13.4 billion, was driven by double digit subscriber growth across all regions — as average monthly churn (0.90%) remained low and ARPU improved a further 10% (8% in CC).

Xero’s operating expense to operating revenue ratio for FY23 was 80.7% (excluding restructuring costs of $34.7 million), in line with guidance.

Product design and development expenses increased by 32% to $490.0 million, up slightly as a proportion of operating revenue to 35.0%. This spending has delivered a number of product updates and new features for customers. This included practice tools updates to unify client data across Xero Practice Manager, Xero HQ and Xero Tax; launching Xero Go in the U.K. to meet the less complex needs of self-employed businesses and their advisors; a partnership in the U.S. with cloud-based tax compliance automation provider Avalara to build an integration that automates sales tax compliance from within Xero; updates to Xero Payroll in Australia to help customers manage compliance for the Single Touch Payroll Phase 2 transition; and South African rand billing to help customers and partners to consistently plan for subscription costs in their local currency.

“Xero’s strong underlying operating result is underpinned by continued revenue momentum from both subscriber and ARPU growth” said Xero CEO Sukhinder Singh Cassidy in a statement. “Our FY23 performance demonstrates Xero’s resilience to the macroeconomic conditions of the past year, and the value we provided to small business customers in a challenging environment. We remain well positioned to take advantage of the significant long-term opportunity for cloud accounting and our small business platform as we prioritize disciplined, customer-focused growth.”

In North America, Xero added 30,000 subscribers in the second half of FY23, in line with the second half of FY22 and with guidance. In FY23, Xero added 45,000 net subscriber additions in North America to reach a total of 384,000 subscribers.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Tech news: Ramp launches AI-based Ramp Intelligence suite

Next Post

Musk biography will hit the street Sept. 12

Next Post
Musk biography will hit the street Sept. 12

Musk biography will hit the street Sept. 12

Dollar hits 3-year low on report Donald Trump could pick next Federal Reserve chair early

Dollar hits 3-year low on report Donald Trump could pick next Federal Reserve chair early

June 26, 2025
Here’s how Alaska Airlines achieved 99.5% employee engagement

Here’s how Alaska Airlines achieved 99.5% employee engagement

June 24, 2025
The Fed won’t lower rates like Trump wants because it sees ‘meaningful’ inflation spike later this year

The Fed won’t lower rates like Trump wants because it sees ‘meaningful’ inflation spike later this year

June 24, 2025
US stocks rise to closing high despite Donald Trump halting trade talks with Canada

US stocks rise to closing high despite Donald Trump halting trade talks with Canada

June 27, 2025
Trump speeds up tax bill deadline as tentative SALT deal reached

Trump speeds up tax bill deadline as tentative SALT deal reached

June 27, 2025
Is your firm overpaying for external hires?

Is your firm overpaying for external hires?

June 23, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Chief Justice Roberts warns against elected officials’ heated political words about judges

Chief Justice Roberts warns against elected officials’ heated political words about judges

June 28, 2025
This overlooked risk to financial markets is ‘shouting, not whispering’

This overlooked risk to financial markets is ‘shouting, not whispering’

June 28, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!