Cloud accounting software Xero reported subscriptions rose by 20 percent year-over-year for the year ended March 31. North American subscriptions rose by 18 percent with revenue on this continent up 2 percent—6 percent in constant currencies, the company reported this month.Those numbers were released as 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
CEO Steve Vamos said that despite the COVID-19 pandemic, the 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 the company’s earnings webcast.
Xero ended fiscal 2021 2,741,000 subscribers—285,000 in North America, with what Xero called a notable recovery in net additions in H2 FY21.
North American revenue 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.
