Accounting software company Xero Live, which listed in June, has reported a half year net loss of $1.73 million.
The result reflected a substantial investment in building software functionality and sales and marketing capability, the company said today.
Revenue from ordinary activities for the six months to the
end of September was $194,000, with revenues from subscriptions of $24,000. The half year was the first period in which Xero collected revenue from customer subscriptions.
Comparisons with previous periods would not be meaningful, Xero said.
The company raised $15 million in and initial public offering, issuing shares at a $1 each earlier this year.
Shares in Xero closed yesterday at 86c, having been as high as $1.17 the day after the company listed in early June, and as low as 70c.
Operating costs for suppliers and employees in the half year was $2.2m, with the company having 41 employees. There were 204 paying customers with 240 organisations and 404 users.
Cash and bank balances amounted to $12.6m.
Xero software moved to general release in August and continued to add software functionality on a three to four week basis in line with its planned delivery cycle, the company said.
Among the 41 employees, Xero's development team had grown from nine to 22 members.
Business development activities in Britain and Australia were at an initial stage and those costs were expected to be in line with the previous forecast of $1.2m for the year, Xero said.
At this early stage of its development, Xero said it remained focused on keeping costs in line with the forecasts contained in its offer document while continuing to build the foundations for scale.
- NZPA
