Xero has released its latest set of announcements, which includes an update on its financial results.
The company's half-year financial results signalled a continued growth momentum, with Xero saying that more small businesses were placing their trust in its cloud technology and open platform to run their business and meet critical compliance needs.
According to the reports, operating revenue grew 30% (27% in constant currency) to $658.5 million, total customer lifetime value increased 30% to $13 billion, and subscribers were up 16% to 3.5 million.
Xero says that the environment in which small businesses are operating around the world remains complex.
"They continue to navigate and adapt to increasing inflationary and interest rate pressures and challenges in accessing talent, while responding to the evolving needs of their customers," the Xero monthly update stated.
The company says that these types of situations strengthen the case for small businesses to adopt cloud technology, enabling their businesses to be more efficient and effective.
Besides financial growth, the company has also released a number of new initiatives. A new collaboration with Intel is set to help empower small business owners to better manage their finances.
Xero says it is the only accounting software provider included in the launch of the Intel Software Advantage Program, which helps small businesses gain more visibility over their financial position, so they can grow faster and smarter.
Environmental impact was also another key focus. Xero recently announced emissions reduction targets to 2030 as the next step in its journey towards net-zero emissions by 2050.
The targets support the Paris Agreement's goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels. The targets are:
- 42% reduction in Scope 1 and 2 emissions from FY20 by FY30
- 17% reduction in Scope 3 emissions from FY20 by FY30
- Net-zero* emissions no later than FY50
"The climate crisis is affecting all of us, and every business has a role to play in supporting the transition to a net-zero economy," says current Xero CEO Steve Vamos.
"We're proud to be on a carbon reduction journey, and setting these targets provides a clear direction for us to reduce our greenhouse gas emissions, while building on our current initiatives."
In staffing news, the Board of Xero Limited also announced the appointment of Sukhinder Singh Cassidy as Xero's new CEO, from 1 February 2023.
Cassidy will succeed Steve Vamos, who, after serving almost five years as CEO, is retiring from the role and plans to return to his previous portfolio in business coaching and leadership development as an advisor, director and investor.