Xero’s full year 2021 financial results

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Today we announced Xero’s full year financial and operating results to 31 March 2021 (FY21).

Over the last year, we’ve focused on responding to the immediate needs of our customers, continuing to introduce new products and services and executing our growth strategy, demonstrated by a significant capital raise, and a number of important acquisitions.

Our performance demonstrates we’re well positioned to meet fast-evolving customer needs in an environment where cloud-based software and integrated digital tools are increasingly important to our customers. We have entered the new financial year with momentum and confidence in our long-term strategy.

In the video below, I share the highlights from our FY21 results.

A year of two halves

FY21 was a year of two distinctly different halves, with the impact of COVID-19 most felt during the first few months of the year and we reduced our sales and marketing spend in response. As conditions improved, we picked up our spending and this helped drive higher subscriber additions in the second half of the year.

Full year highlights include (all figures in NZD, comparisons are made against FY20):

Operating revenue increased by 18% to $848.8 million (18% in constant currency (CC))
Annualised monthly recurring revenue (AMRR) grew 17% to $963.6 million (18% in CC)
Total subscribers increased by 20% to 2.74 million
Total subscriber lifetime value (LTV) grew by 38% (37% in CC) to $7.65 billion
Free cash flow was $56.9 million, with total available liquid resources rising to $1.3 billion
EBITDA of $191.2 million, an increase of 39% compared to $137.7 million
Net profit of $19.8 million, an increase of $16.4 million

We also passed a milestone in the growth of our platform, with now over 1,000 connected apps in our ecosystem. Our partnerships with banks and financial service providers also grew – Xero now supports more than 300 connections to banks and financial service providers globally.

A special thanks to our community

The past year’s results wouldn’t be possible without the efforts of the entire Xero team, our customers, shareholders and our community of accounting and bookkeeping partners. We thank them all for their support.

You can find Xero’s FY21 results materials here: www.xero.com/about/investors

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