Xero UK revenues up 51% as it reaches 536,000 subscribers

Cloud accounting software company Xero has reported a 51% increase in its UK revenues, as its UK subscriber count also jumped by 51% to over 536,000 subscribers.

Globally, Xero reported operating revenues of NZ$338.7m (£168m) for the half year period ending 30 September. Net profits were also up NZ$29.9m (£14.7m) to NZ$1.3m (£642,000).

This was attributed to a 30% growth in annualised monthly recurring revenue (AMRR) to $764.1m (£377m) as it surpassed two million subscribers globally, to end the period with 2.057 million subscribers.

It added that its UK results were driven by continued focus on building Xero’s partner channel, investment in brand and marketing, and the implementation of HMRC’s Making Tax Digital initiative. To meet growing customer demand, Xero announced the opening of a new office in Manchester that complements Xero’s London and Milton Keynes offices.

CEO Steve Vamos said: “We’ve continued to perform well this half with strong topline results and improving financial performance. Exceeding two million subscribers globally and achieving AMRR of over three quarters of a billion dollars were important milestones.

“There are a number of significant global trends contributing to Xero’s growth including industry,regulatory and technology shifts. These include the increased use of cloud technology by small businesses, the digitisation of tax and compliance systems, and innovation reshaping the financial services sector.”