Xero exceeds year 1 targets

Xero (a sponsor for this site) has exceeded its post IPO targets. According to the company:

• 1406 customer acquisitions compared with a target of 1300 in the offer document
• Cash at May 10th: $8,991,000, $613,000 higher than forecast
• Subscription revenue: $134,000
• Net loss: $4.3 million, lower than anticipated due to higher interest received
• Substantial pipeline

The loss may seem staggering but when you consider the company has not only delivered a full on-demand accounting application, moved into selected verticals, acquired a decent number of customers and entered the UK then it represents a solid achievement. It’s another validation that the on-demand market is real and here to stay.

Like all new entrants, it will need to conserve cash and watch marketing costs carefully but on this first year performance, Xero seems well set to continue its upward trajectory. Recent news about early demand for CODA2go can only help raise the general awareness of companies working in the on-demand space.

Tagged as: xero