SHARES in the New Zealand accounting software developer Xero Ltd surged yesterday as the company said year-to-March revenue will double and it is now running at an annualised rate of more than $NZ20 million ($15.4 million).
In the year to March last year, revenue totalled $NZ9.3 million, with the company now indicating this financial year's revenues will reach $NZ18.6 million.
"Committed monthly revenue is now $NZ1.75 million or $NZ21 million annualised," it said. The chief executive, Rod Drury, said the company is chasing revenue growth and is not making any forecasts about when it will be cash positive.
"We're driving the business for growth," Mr Drury said. "The incumbents in the US and Australia have left the door open.
"We're in such a hot space we have a lot of people looking to invest in the company. It would be easy to raise cash if we need to."
Xero, which is listed on the New Zealand Stock Exchange, has raised capital from the likes of MYOB founder Craig Winkler, as well as the PayPal and Facebook Inc co-founder Peter Thiel.
It has an online accounting software offering that has taken advantage of cloud computing to undercut rivals such as MYOB and Intuit, which has accounting software marketed locally.
Mr Drury said that existing accounting software companies were finding it difficult to develop online offerings that could compete with Xero.
Xero shares closed at $NZ2.89, near their all-time high of $NZ2.95.