Xero added 25,000 customers in the past four months and now counted 135,000 paying customers globally, the company announced in a press release to the Australian and New Zealand sharemarkets.
The cloud accounting software company was on target to double its revenue by the end of the New Zealand financial year, which ended March 31, Xero said in the release. Annual operating revenue in FY2011 was NZ$19.3 million and projections based on annualised monthly revenue for FY2012 were over NZ$38 million. (See Xero vs MYOB: the Early Years Compared, for a comparison with MYOB’s early growth.)
The rate of growth in customers had remained above 110 percent compared to the growth over the previous year. Xero jumped from 53,000 customers in September 30 2011 to 110,000 in September 30 2012.
The greatest growth came from Australia where customers had risen from 16,000 in March 2012 to over 40,000.
The addition of accountant reporting features (see Xero Report Packs Bring Free Financial Reporting to Australian Partners) made it unnecessary for accounting firms to buy separate practice management software and would drive growth in the main selling season, the company said.
“This fundamentally changes the economics of the Australian accounting industry. Delivering client and accountant features on the same platform makes it difficult for Xero’s competitors to continue to monetise the accountant side,” said Xero CEO Rod Drury.
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