Xero reported its first-ever fiscal year net income for the year ended March 31. The roughly $2 million in earnings contrasted with a loss of about $16.2 million for fiscal 2019, the New Zealand-based company reported this week.

The bottom line improvement came as subscriptions reached 2,285,000 for the most recently completed year, an increase of 26 percent  from last year’s, 1,818,000.

 Most companies with March quarters say that Covid-19 has only started impact results, mainly in the second half of March. But while Sage said this week it saw new customer acquisition drop by half of what had been expected for April, Xero CEO Steve Vamos declined to provide any information on last month’s experience during this week's earnings webcast.

Chair David Thodey wrote in the annual report the company had available liquid resources of approximately $410 million as  of March 30. That does not include $300 million from the sale of convertible notes in the United States in October 2018, which he reported, “Remains largely available to fund future investment opportunities.” Xero also has about $90 million in its standby debt facility which is undrawn and available for short-term liquidity requirements if necessary

he US$300 million raised from the convertible notes issue in October 2018 remains largely available to fund future investment opportunities. Our standby $150 million debt facility remains undrawn and is available for short-term liquidity requirements should it be required. 

North America, the fourth-largest region in subscribers, had $33.2 million for fiscal 2020, an increase 25 percent, 19 percent in constant currencies. It ended the year with 241,000, up 24 percent from 195,000.

Australia remained the country with the largest number of subscribers, 914,000  last year, rising 26 percent from 726,000  in 2019. The United Kingdom is a strong No. 2 among regions, hitting 613,000 subscribers, up 32 percent from 463,3000. The home country of New Zealand had 392,000 subscribers, 12 percent higher than i 351,000.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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