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Xero’s half year 2020 results & announcing Net Zero @ Xero

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Steve Vamos

Nov 6, 2019

Today we announced Xero’s half year financial and operating results to 30 September 2019 (H1 FY20). You can find the materials here:

It is great to share the achievement of two significant milestones. The first is surpassing two million subscribers globally, ending H1 with 2.057 million subscribers. While it took more than a decade to add Xero’s first million subscribers, it took just two and a half years to add the next million. 

We’re also excited to announce Xero is taking action towards a net zero carbon footprint – we’re calling this Net Zero @ Xero. As part of this, Xero is committing to offset 100% of our carbon emissions for the year to 31 March 2019 and going forward. 

Performance highlights include:

(All figures in NZD and comparisons made against H1 FY19)

  • Operating revenue was up 32% to $338.7 million (33% in constant currency (CC)) 
  • 30% growth in annualised monthly recurring revenue (AMRR) to $764.1 million
  • 30% growth in total subscribers to 2.057 million
  • Total subscriber lifetime value grew by 37% (38% in CC) to $5.4 billion, with more than $1 billion added in the half
  • Free cash flow was $4.8 million, compared to free cash outflow of $9.8 million in H1 FY19
  • Net profit after tax increased by $29.9 million to $1.3 million – our first positive H1 net profit result
  • EBITDA excluding impairments of $65.9 million almost doubled from $34.5 million in H1 FY19

Announcing ‘Net Zero @ Xero’

As part of our social and environmental impact program, Xero is taking action to reduce our emissions footprint and will offset 100% of Xero’s carbon emissions across all areas of the business for the year to 31 March 2019 (assessed retrospectively and finalised during FY2020) and going forward. 

We are actively developing Xero’s social and environmental initiatives that we believe can have a positive impact on our communities and the environment. These initiatives include enhanced employee volunteering and support for non-profit and for-purpose organisations.

Xero takes sustainability seriously and we see our commitment to Net Zero @ Xero as a positive step for our business.

Finally, I want to thank the entire Xero team, our customers, our shareholders and our community of accounting and bookkeeping partners for your support and contribution to Xero. Together we make life better for people in small business around the world.

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