Sero reported a loss of NZ $ 5.92 million over the past six months on September 30, 2021, a significant difference compared to last year’s NZ $ 34 million net profit.

According to EBDITA, Xero saw a 19% decline from NZ $ 121 million to NZ $ 98 million per year. Free cash flow decreased to NZ $ 6.4 million compared to NZ $ 54 million in the same period last year.

“EBITDA, net profit and cash flow have been reduced compared to H1 FY21 due to increased investment in sales and marketing and product development,” Xero said on Thursday.

“The activity in these metrics reflects the significant focus on cost management in response to the initial effects of CV-19 during the previous comparison.”

Revenue, however, increased by up 23% year-over-year, surpassing the NZ $ 500 million mark, which, according to the small business cloud provider, was the first for the company in half a year.

Since then, total operating revenue, subscription revenue has increased by NZ $ 86 million, an increase of 21 percent from H1 FY21. The company said the growth was mainly driven by organic growth as well as acquisition. Planday And Tickstar.

On September 30, 2021, the number of subscribers increased by 560,000 to a total of three million subscribers.

Other operating revenues more than doubled last year by NZ $ 8 million, earning only $ 18 million for 1 H21 NZ. The company’s 121 percent increase was due to organic service revenue, organic growth, and new financial services from it. AU $ 80 million purchase of Wadel At H2 FY21.

In terms of operating costs, this increased by 46 percent, from NZ $ 288 million to NZ $ 422 million compared to H1 FY21.

“They recognize the critical importance of digital tools for small businesses around the world to adapt and thrive in a dynamic environment.

“We are committed to providing the world’s most intelligent and trusted small business platform for the betterment of people around the world, their consultants and communities around the world. .

Breaking the market, the UK grew revenue by 24 percent to $ 133 million, and added a total of 65,000 net subscribers to 785,000.

Australia grew its net worth by 124,000 in the first half of the year, raising its total market share to 1.24 million and raising its revenue by 22 percent to $ 225 million.

In the case of New Zealand, the six-month period ended with a total of 480,000 subscribers, 34,000 new additions and 13% revenue to NZ $ 72 million, while North America had 5% revenue to NZ $ 30 million and total enrollment. That number has grown from 23,000 to 308,000.

Along with the half-year results, Zero has announced a acquisition of US Cloud-based asset management supplier. Zero believes the $ 19 million deal will help meet the demand for small business products and cash flow management tools.

“Load purchase supports our strategic priorities to grow a small business, strengthens our ecommerce offerings, and supports our growth opportunities in North America and internationally. It is a very intelligent and trustworthy platform for small businesses,” Vamos said.

Looking forward, Zero expects total operating costs, excluding procurement merchandise, to fall by 80-85% in the 22nd fiscal year. Operating income up to 2% for FY22.

In addition, the purchase of Planday is expected to contribute to an additional three percent increase in operating revenue in the current fiscal year.

The acquisition, integration and operational costs are expected to have a small impact on Xero’s FY22 EBITDA, the company added.

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