Cloud accounting firm Xero hit $47.3 million in losses during the fiscal year, but its latest earnings data aren’t all so bleak.
Reports Thursday (May 11) said the company’s losses were cut in the most recent fiscal year compared to the $56.5 million in losses the year prior. Further, Xero marked its first positive cash flow in the second half of the year, said reports, reaching nearly $6.2 million. Full year cash outflow was also cut compared to FY16.
And while earnings were still negative, there was a $21.3 million improvement compared to the last fiscal year.
Overall, Xero revealed 43 percent growth year over year.
“Over the past decade, Xero has become much more than juSt a transformational cloud accounting platform — it is also a major driver of economic activity for small businesses,” said Xero CEO and Founder Rod Drury in a talk with shareholders. He added that Xero is working toward NZ$1 billion in revenue.
Earlier this year, Xero revealed it surpassed the 1 million subscriber mark, and the company says it is the largest cloud accounting company outside the U.S. The firm added 190,000 subscribers in FY2017.
“Five and a half years ago, at 50,000 subscribers, we asked shareholders to imagine our business at a million subscribers,” Drury added. “We invested for the long term to build a business and ecosystem to achieve those numbers. It’s very satisfying to deliver on that promise.”
Reports highlighted key activity for the company over the past year, including partnerships with key financial players in Asia, like HSBC in Hong Kong and UOB in Singapore.
More recently, earlier this week, Xero announced a collaboration with Capital One that facilitates data sharing between the two.