Company chairman Rob Drury (pictured) told the company’s annual meeting late last night in Wellington that Xero (ASX:XRO had now exceeded US$100 million in subscriber-based revenue.
Announcing full year results for 2014, Drury forecast a subscription revenue growth of 80% per cent in the new fiscal year in line with previous predictions.
Xero is currently jointly listed on the ASX and the New Zealand Stock Exchange.
Market growth has been driven by cloud solutions, with adoption rates rising rapidly.
Xero’s results for the full year to March 2014 show the company now has 284,000 customers, up from 157,000 in the previous year – with revenues of $70.1 million, an increase of $31 million over 2013.
Drury has indicated a US listing will likely occur during the 2015 calendar year, but that Xero is still in the process of considering its options.
Xero sees the benefits of a US listing as a way of raising its profile in that market as well as increasing liquidity.
Xero currently has less than a 1% share of the US market, which is dominated by Intuit. In its home market of New Zealand, Xero shows its marketshare of small business (SMBs) at 23% and partner accounting and bookkeeping companies at 76%.
In Australia, Xero claims 5% of the SMB market and 18% of the market for accounting and bookkeeping companies.
In the UK market, Drury paints a strong picture of growth, telling investors that the market there for accounting software was accelerating.
According to Drury, Xero is already the “leading cloud accounting provider,” in the UK market, with 100% customer growth year-on-year, a strategic alliance with KPMG and 90-plus UK staff.