Last week accounting service provider Xero announced a half year loss of $4.7m but revenues increased to $3.7m.
CEO Rod Drury says:
The loss of $4.7 million for the six months to 30 September was comparable with the loss for the preceding six month period ended 31 March 2010. This signals the turning point towards profitability. The board expects losses will reduce from now on as the company heads towards its break-even target.
What is also interesting for me is that the company had 27,000 paying business customers.
This represents a huge shift in the accounting software industry in New Zealand. Given that Xero is only 4 or 5 years old, this is significant progress into the incumbents (MYOB) market share.
Although MYOB have setup a competitor site to Xero, because MYOB is owned by a private equity company it is unknown how many users MYOB has signed up.
I think Xero has some more tricks up their sleeve so watch this space…