Xero has posted a $3.8 million loss for the six months to September 30, on revenue of $1.27 million.
However, revenue was 282 percent higher than for the previous six month period, and a significant chunk of the loss is attributed by the company to greater operating costs, which were up 31 percent on the previous period.
According to Xero’s interim report on the September 30 results, the increase in operating costs “reflects investment in upgrading Xero’s hosting capacity; enhancing the infrastructure for software delivery and online customer support; increasing sales capability in the UK and establishing a sales base in Australia”.
As of September 30, the report notes, there were 12,000 paying customers, double the number as of March 31.
The company had $26 million in cash and bank balances at September 30, thanks to the capital raising carried out earlier this year, which included an $18 million cash injection from MYOB co-founder Craig Winkler.
Employee headcount now stands at 73, and the interim report notes “the company expanded its software development team so that it has the capacity to broaden its offering and remain world-class”.
Xero recently announced intentions to extend its hosted accounting software offering into the consumer market, and is working in partnership with the BNZ on the service, to be called Xero Personal. The service is expected to be available next year.