Although rival Intuit no longer reports changes in the number of subscribers, we will get some sense of the change on May 25 when that software company reports results for the third quarter ended April 30. However, Steve Vamos, CEO of the cloud accounting software company, said despite the COVID-19 pandemic, Xero's year finished strong. “A more challenging operating environment first half was followed in the second half in our best ever half in subscriber addition; in fact, our best March ever,” he said during this week’s earnings webcast. For the recently ended year, Xero reported net income of about $15.3 million, more than five-and-a-half times last year’s bottom line. Revenue for fiscal 2021 was approximately $656 million, 18-percent higher than the fiscal 2020 total. North America’s subscriber base grew by 18 percent year-over-year to 285,000, with what Xero called a notable recovery in net additions in H2 FY21. Revenue on this continent was up 2 percent to about $44 million—6 percent in constant currencies, which reflected the loss of revenue from bundling Hubdoc into Xero Business Edition subscriptions and the lack of any Xerocon-related revenue last year. Australia subscribers, who represent 40.5 percent of the Xero total, grew by 22 percent to 1,115,000. Revenue was up 20 percent; 18 percent in constant currency. There were 720,000 subscribers in the United Kingdom, growth of 17 percent with revenue rising 22 percent; 23 percent in constant currency. New Zealand subscribers reached 446,000, an increase of 14 percent, which was the best performance in three years, the company said.
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XERO SUBSCRIBERS UP 20 PERCENT Featured
Xero has reported it had 2,741,000 subscribers when the year ended March 31, an increase of 20 percent over fiscal 2020. However, pace of growth was dampened a bit as the 456,000 net subscriber additions for the year was down 2 percent from 467,000 net additions last year.