Xero Revenue And Subscribers Increase, FY23 Loss Grows

Xero's net loss got bigger in the last year, but its operating earnings were better than expected. Revenue and subscribers increased a lot by March 31.

On Thursday, the cloud accounting company from New Zealand stated that their earnings for 2022/23 increased by 28%, which equals $NZ1.4 billion ($A1.3b). Additionally, their subscribers rose by 14%, reaching a total of 3.74 million.

The company's EBITDA increased by 45% to $NZ301.6m. This happened after considering costs from layoffs and Waddle shutdown. They surpassed the consensus expectations by 5%.

The company announced a net loss of $NZ113.5m. This is a big increase from the previous year's $NZ9.1m loss.

CEO Sukhinder Singh Cassidy said that Xero has a good operating result, thanks to revenue from subscriber and ARPU growth. ARPU means average revenue per user.

Xero did well in FY23 despite the tough economy. We helped small businesses during hard times.

Garry Sherriff from RBC Capital Markets liked Xero's result. Xero managed its costs well, which helped their success.

He said Xero's churn rate was very low at only 0.9%, even though the economy is not doing well. This was better than RBC had predicted.

He said the churn beat showed that the product was sticky and resilient.

Josh Gilbert from EToro had a negative outlook on the results.

He said that the profitability numbers are disappointing for investors. The company's loss for the full year has increased a lot.

The CEO, Sukhinder Singh Cassidy, is making big changes to make more profits, but there may be a loss of money in the short-term.

Xero's shares went up by 6.5% to $100.41 at 11:30am AEST.