Xero Swings to NZ$174.6 Million Annual Profit on Jump in Revenue

By Stuart Condie

SYDNEY--Xero swung to an annual profit after the cloud-accounting software provider lifted revenue by 22% on subscriber and price growth.

The New Zealand-based company on Thursday reported a net profit of 174.6 million New Zealand dollars (US$106.5 million) for the 12 months through March, compared with a NZ$113.5 million loss a year earlier.

Annual revenue rose to NZ$1.71 billion, from NZ$1.40 billion, lifting earnings before interest, tax, depreciation and amortization more than threefold to NZ$497.4 million. Xero's prior fiscal year had included NZ$34.7 million of restructuring costs and NZ$117.1 million of impairments and other expenses.

The average analyst forecast had been for a NZ$163 million net profit off NZ$1.71 billion of revenue, according to data compiled by FactSet.

Operating expenses accounted for 73.3% of operating revenue, compared with 80.7% a year earlier. They should be at about 73% in fiscal 2025, Chief Executive Sukhinder Singh Cassidy said.

Xero did not pay a dividend.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

05-22-24 1850ET