Xero growth news expected

Sharemarket darling, online cloud-based accounting company Xero - which is yet to post a profit - is expected to give a detailed account of growth prospects when it releases its full-year results tomorrow.

From a low of $13 a year ago, Xero shares surged to a high of $44.98 in early March and were yesterday trading around $31.90.

Craigs Investment Partners broker Peter McIntyre is expecting Xero to post an after-tax loss of around $35 million tomorrow, but conversely show an improvement in operating revenues.

''The market will be expecting more charity on its future profitability expectations, and [more] customer growth.

''A continuation of high growth is expected, to support its high share price,'' Mr McIntyre said.

From a Xero update last month, the company said operating revenue was up 83%, to $70.1 million, which had been in line with earlier financial guidance, driven by growth across all its regions.

Mr McIntyre noted 66% of revenue was now generated outside New Zealand.

Committed monthly revenue was $23.2 million from New Zealand, $27.7 million from Australia, $9.8 million from the United Kingdom, $3.3 million from the United States and $2.6 million, from other countries.

Xero staffing rose 98% from a year ago to 758. Based in Wellington and founded in 2006, the company holds $210 million cash in hand, from a recent capital raising.

Xero listed in June 2006 and in its initial public offering in 2007 raised $15 million. In March 2009, it raised a further $29 million.

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