Xero Ltd Interim Results for H1 FY27
Key points
- Strong revenue growth of 46% YOY, 27% pro-forma
- Adjusted EBITDA growth of 23% YOY, 27% pro-forma
- Free cash flow up 32% YOY, 36.1% pro-forma
- Continued expansion in customer base and ARPC
- Enhanced AI adoption across millions of customers
Full summary
Xero Ltd's interim results for H1 FY27 showed robust financial performance with revenue growth of 46% year-over-year (YOY) and 27% pro-forma. Adjusted EBITDA grew by 23% YOY and 27% pro-forma. Free cash flow increased by 32% YOY and 36.1% pro-forma. The company experienced continued expansion in its customer base and average revenue per customer (ARPC), with strong growth in the US market. Additionally, Xero saw increased adoption of its AI features, with millions of customers using its AI-powered tools.
Guidance
FY27 adjusted EBITDA guidance: $880m - $920m
Outlook
Xero expects to deliver leverage in H2 FY27, with adjusted EBITDA set to accelerate. The company remains focused on operational excellence and continued growth across its core markets.
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