XRO On ASX

The cost of Planday went down by $NZ77.9 million. Waddle cost $NZ48.5 million due to other expenses and impairments. The cost of restructuring was $NZ34.7 million. There were also some non-cash accounting gains of $NZ17.9 million. If we don't count the write-downs, Xero made $NZ302 million - 45% more than last year.

Ms Singh Cassidy started working for the company in February. She made a plan to save money. She cut up to 800 jobs in March. She did this only six weeks after starting her job.

Ms Singh Cassidy talked about reviewing Xero's strategy in North America in her first earnings call as CEO.

The number of subscribers went up by 14%. The total number of subscribers is now 3.74 million. Most of the subscribers, 2.13 million, are based in Australia and New Zealand. This happened during the financial year.

Last year, Xero gained 45,000 subscribers in North America, totaling 384,000. Outside North America, they gained 254,000 subscribers. In other areas, Xero grew revenue by 30%. The UK saw the addition of 120,000 subscribers, bringing the total to 970,000.

Garry Sherriff, an RBC Capital Markets analyst, said customer churn is low despite tough economic times. He thinks this means the product offering is resilient.

According to Paul Mason, an analyst at E&P Financial, the results are consistent overall.

Mr. Mason said that the only downside is the non-cash write-down of Planday and Waddle. Because of this, the statutory NPAT fell below expectations. But the operational metrics are good. The revenue is in line, EBITDA is a small beat, and the subscribers are meeting key levels. Overall, everything looks solid.

Early this year, Xero got Planday for €155.7 million ($241.6 million). Planday is a workforce management platform in Europe.

In March, the company declared that it would be exiting its cloud-based small business lending platform, Waddle. They had purchased Waddle in 2020 for $31 million upfront.