The Xero (ASX: XRO) share price rose 9.6% today, it was the biggest gainer in the ASX 200 after releasing its half year result.
Founded in New Zealand in 2006, Xero has become the dominating player in the business and accounting software market in Australia, New Zealand and the UK. Employing more than 2,300 people, Xero helps more than 1.8 million subscribers manage their accounting and tax obligations.
Another Six Months Of Growth For Xero
Xero reported that operating revenue increased by 32% to NZ$338.6 million on the back of a 30% increase of subscriber numbers to 2.06 million with an additional 239,000 subscribers.
One of the metrics that Xero was pleased to point out was that its gross profit margin percentage continued to improve, it rose 2.4% (240 basis points) to 85.2%.
EBITDA (click here to learn what EBITDA means) excluding impairments rose by 91% to NZ$65.9 million and net profit after tax came in at NZ$1.3 million compared to the net loss of NZ$28.5 million last year.
Xero CEO Steve Vamos commented on the result, “We’ve continued to perform well this half with strong topline results and improving financial performance.
“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.”
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