Xero's profit has increased by close to a third. Photo: RNZ
Accounting software company Xero's profit has increased by close to a third as it lifted revenue, while margins and subscriber numbers also rose.
Key numbers for the 12 months ended March compared with a year ago:
- Net profit $227.8m vs $174.6m
- Revenue $2.10b vs $1.71b
- Operating earnings (EBITDA) $638.5m vs $497.4m
- Subscribers 4.41m vs 4.16m
- No dividend.
The Australian-listed company's chief executive Sukhinder Singh Cassidy said the result showed resilience and "effective execution" of its strategy.
Xero is known for its cloud-based accounting software, with its head office in Wellington.
"Our focus on balanced profitable growth has enabled us to again deliver strong EBITDA growth," Singh Cassidy said.
Xero's subscriber numbers increased by 6 percent, while its gross margin percentage rose by 0.8 percentage points to 89 percent.
Average revenue per user rose 15 percent to just over $45.
Xero said the Australia and New Zealand markets saw double-digit revenue growth, while international markets revenue increased by nearly a quarter.
The company said for the 2026 financial year, it expected operating expenses as a percentage of revenue to be around 71.5 percent.
