Xero Limited reports its full-year earnings to 31 March 2018, delivering its first positive annual EBITDA of $26.0 million.
Through disciplined execution, Xero has continued to grow in FY18, adding 351,000 subscribers, increasing revenue by 38%, improving operating cash flows by $45.6 million, increasing EBITDA by $54.6 million and growing LTV by $990 million to surpass $3.2 billion in total LTV.
Xero is delivering on its consistent strategy to drive global growth, while improving financial outcomes through operating efficiencies. Xero improved operating and investing cash flow margins from (71)% to (9)% over three years and grew revenue at a compound annual growth rate (CAGR) of 49% over the same period.
Xero’s recurring revenue and ARPU metrics have been updated to include other recurring platform revenues such as transactional services, and other partner and small business products (AMRR has replaced Annualised committed monthly revenue (ACMR)). In FY18, core accounting product revenues grew 37% while other platform revenues (currently representing 3% of total group revenues) grew at 94%.
Xero Chief Executive, Steve Vamos said: “Xero has delivered another impressive full-year result driven by subscriber and revenue growth with excellent operating discipline, reflecting the strength of our value proposition and business model.”
“We are well poised to leverage Xero’s international market leading positions as we continue to build a diversified growth profile. The Xero team is focussed on delivering a scalable, world-class product and customer service experience as we expand further into new and existing markets.”
Xero Chief Operating and Financial Officer, Sankar Narayan said: “This has been a landmark year for Xero, reaching several significant milestones while driving strong subscriber and revenue growth. These include S&P/ASX 100 index inclusion, our first annual positive EBITDA, first positive operating cash flows for the full-year, and establishing access to debt capital.”
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