WELLINGTON (dpa-AFX) - Xero Ltd (XRO.AX, XROLF), a New Zealand-based cloud accounting software provider reported a decline in profit for the first half of fiscal 2027, despite higher revenue growth. Further, the firm raised its full year guidance.
Separately, Xero also announced that Chief Financial Officer Claire Bramley has decided to quit 'to take up a new role with another global organisation.' Bramley will remain in the position until January 31, 2027, while the company is on the look out for a successor.
Further, the company announced a share buyback of up to A$1 billion, which is expected to be completed over the next 12 months. The programme will be funded through excess cash and expected free cash flow.
Looking ahead for the full year, Xero now expects Adjusted EBITDA between $880 million and $920 million from the previous guidance of $860 million to $920 million.
Full year operating revenue outlook is forecast at a range of NZ$3.77 billion to NZ$3.83 billion, compared with its previous estimate of NZ$3.62 billion to NZ$3.73 billion.
It also raised its fiscal 2028 revenue aspiration to more than NZ$4.6 billion, excluding revenue synergies.
For the first half, net profit declined 86 percent to NZ$18.53 million from NZ$134.78 million in the prior year period.
Adjusted net profit declined 34 percent to NZ$81.15 million from NZ$123.39 million in the previous year period.
Basic earnings per share decreased to NZ$0.11 from NZ$0.84 a year earlier.
Adjusted basic earnings per share declined 38 percent to NZ$0.48 from NZ$0.77 in the prior year period.
The company attributed the decline in profit largely to the incorporation of Melio, which remains loss-making, and the one-time significant foreign exchange gains recorded in the previous year.
Operating income declined 9 percent to NZ$124.50 million from NZ$137.14 million a year earlier.
EBITDA declined 8 percent to NZ$347.55 million from NZ$377.87 million in the same period last year.
Adjusted EBITDA increased 3 percent to NZ$361.55 million from NZ$350.93 million in the prior year period.
Operating revenue jumped 46 percent to NZ$1.75 billion, compared with NZ$1.19 billion in the prior year period. On a constant currency basis revenue increased 41 percent.
In Australia, the shares closed trading 6.08 percent higher at A$75.17 on Thursday.
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