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Shares for NZ-based tech company Xero surge to all-time high

Xero shares have surged to another all-time high after the cloud accounting software firm swung to a $1.34 million first-half profit on a near one-third rise in revenue.

Operating revenue for the six months to September 30 jumped 32 per cent to $338.7 million after subscriber numbers rose 30 per cent to just over two million.

Xero noted that it took more than a decade to reach its first million subscribers, but just two and a half years to add the next million.

"There are a number of significant global trends contributing to Xero's growth including industry, regulatory and technology shifts," chief executive Steve Vamos said in a release to the ASX.

"These include the increased use of cloud technology by small businesses, the digitisation of tax and compliance systems, and innovation reshaping the financial services sector."

While Xero reported a $1.4 million second-half profit back in May, Thursday's result marked the Wellington-based firm's debut first-half profit since listing on the ASX in 2012.

Its shares rose as much as 7.0 per cent to $72.25 in early trade on Thursday and, at 1245 AEDT, were still 6.8 per cent higher at $72.12 - up 71.7 per cent for the calendar year.

Australia remained Xero's largest market, with subscriber numbers rising 28 per cent on the prior corresponding period to 840,000.

UK subscriber numbers rose 51 per cent to 536,000.

NZ rose 13 per cent to 367,000, North America rose 21 per cent to 215,000, and the rest of the world rose 52 per cent to 99,000, led by South Africa.


Xero sign Source: 1 NEWS