Xero’s cash burn accelerates as costs to grow run ahead of sales

Tue, 30 Jul 2013

July 31 (BusinessDesk) – Xero, the cloud-based accounting firm, burned through more cash last quarter as the company’s rapid expansion saw wages, advertising and marketing payments run ahead of sales. The Wellington-based company’s cash flow statement shows it was sitting on $68.8 million of cash as at June 30, down $9.4 million from three months earlier. It used $6.57 million in the first quarter of the year. Xero is chasing sales growth in lieu of profits, with an aspirational target of 1 million customers worldwide, from 157,000 as at Mar...

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