- Xero’s operating revenue reached NZ$799.5 million, marking a 21% increase compared to the previous year.
- The company’s annualized monthly recurring revenue was NZ$1.77 billion, up 19% from the previous year.
- Average revenue per user rose by 5.9% to NZ$37.38.
- By the end of the period, Xero had 3.95 million subscribers, a 13% increase from the previous year.
- However, the net change in subscribers was +204,000, a decrease of 9.3% from the previous year.
- The lifetime value of subscribers increased by 14% to NZ$14.8 billion.
- Xero’s Ebitda was NZ$206.1 million, marking a 90% increase from the previous year.
- The company reported a net income of NZ$54.1 million, compared to a loss of NZ$16.1 million in the previous year.
- Free cash flow was NZ$106.7 million, up from NZ$15.6 million the previous year.
- Operating expenses increased by 15% to NZ$632.4 million.
- The gross margin was 87.5%, slightly higher than the previous year’s 87%.
- No dividends were proposed or paid during the reporting period.
- The company aims to achieve an operating expense to operating revenue ratio of approximately 75% in FY24, which would improve the operating income margin compared to FY23.
- Xero has a long-term goal to continue improving its operating expense ratio and operating income margin, although no specific timeline has been set.
- The reported operating expense to operating revenue ratio was 79.1%, down from 83.9% in 1H FY23.
A look at Xero Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Xero Limited, a provider of online accounting systems, has a long-term outlook that is looking positive, according to the Smartkarma Smart Scores. The company scored a 4 in Resilience, a 5 in Momentum, and a 2 in both Value and Dividend, and a 2 in Growth. Xero Limited offers a comprehensive online accounting system that includes features such as bank transaction importing, a cashbook, a general ledger, invoicing, accounts receivable, accounts payable, financial reporting, and management of expense claims.
The company’s strong Momentum score suggests that Xero Ltd is set to benefit from its current market position and is likely to continue to do so in the long-term. In addition, the company’s Resilience score of 4 indicates that it is well-equipped to handle changes in the market and is likely to remain competitive in the long-term. With a strong outlook, Xero Ltd is well-positioned to continue providing its customers with a comprehensive online accounting system.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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