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Xero Delivers 21% Revenue Growth with 2.45 Million Subscribers

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Small business sector shows resilience in challenging conditions; operational discipline during COVID-19 drives free cash flow of $54 million

 

WELLINGTON, NEW ZEALAND – Media OutReach – 12 November 2020 – Xero Limited (ASX: XRO) today reports half year earnings to 30 September 2020 (H1 FY21) that demonstrate the resilience of its global subscriber base, and its proactive response supporting customers and partners, in a challenging COVID-19 environment. While COVID-19 had some impact on Xero’s ability to acquire new customers during the period, subscribers grew by 19% to reach 2.45 million with all markets making positive progress and Australia becoming Xero’s first market to pass one million subscribers.


Performance highlights H1 FY21 (All figures are in NZD and comparisons are made against H1 FY20)

  • Operating revenue was up 21% to $409.8 million (19% in constant currency (CC))
  • Annualised monthly recurring revenue (AMRR) grew 15% to $877.6 million
  • Total subscribers increased by 19% to 2.45 million
  • Total subscriber lifetime value (LTV) grew by 15% (in both actual and CC) to $6.2 billion
  • Free cash flow was $54.3 million, compared to $4.8 million
  • EBITDA of $120.8 million increased 86% from $64.9 million
  • Net profit after tax increased by $33.2 million to $34.5 million

Financial highlights

Six months ended 30 September

 2020

 2019

change

Operating revenue ($000s)

409,837

338,658

21%

Subscribers

2,453,000

2,057,000

19%

Net subscriber additions

168,000

239,000

-30%

Average revenue per user ($)

29.81

30.96

-4%

Annualised monthly recurring revenue ($000s)

877,551

764,096

15%

EBITDA ($000s)

120,765

64,850

86%

Net profit after tax ($000s)

34,486

1,336

NM*

Free cash flow ($000s)

54,268

4,829

NM

Total lifetime value of subscribers ($b)

6.17

5.39

15%

Gross margin percentage

85.7%

85.2%

0.5pp**

*NM stands for not meaningful

**pp stands for percentage points


Xero’s H1 FY21

Xero prioritised investing for the long term and addressing customer needs with a record level of product development spend of almost $140 million in H1 FY21. This was up 29% compared to the same period last year, and significantly higher than operating revenue growth of 21%. Xero also continued to focus on execution of its strategy and M&A opportunities, demonstrated by the acquisition of invoice lending platform Waddle.

The strong EBITDA, free cash flow and net profit performance in H1 FY21 reflects Xero’s disciplined financial management during a highly uncertain period. This approach contributed to a 10% reduction in  sales and marketing costs when compared to H1 FY20. Uncertainty from COVID-19 is likely to remain. However, Xero’s focus on long-term growth, combined with a return to more normal market conditions, would be expected to drive a return to positive sales and marketing cost growth.

While there was some volatility in churn during the period, overall reported Monthly Recurring Revenue (MRR) churn in H1 FY21 was consistent with H1 FY20 at 1.11%.

CEO Steve Vamos said: “This result demonstrates the value our customers attribute to their Xero subscription and the underlying strength of Xero’s business model. We continue to prioritise investment in customer growth and product development in line with the long term opportunity we see.”

“Subscriber growth was positive in all geographies, with stronger net subscriber additions in Australia and New Zealand with relatively less disruption in those markets from COVID-19. During a difficult period, it’s pleasing to report we grew to exceed one million subscribers in both Australia and in our International segment.”

“We’ve responded to COVID-19 by delivering new products and services that meet our customers’ and partners’ changing needs. These include assisting with small business access to government stimulus and delivering Xero On Air, our first global digital customer and partner engagement event.”

Market highlights

Australia subscribers grew by 21% compared to H1 FY20, to 1.01 million subscribers. Revenue was up 18% (17% in CC). The Australian Taxation Office Single Touch Payroll initiative, and the roll-out of JobKeeper stimulus payments by the Australian Government, contributed to continued strong demand for cloud accounting in this market.

 

UK subscribers grew by 19% compared to H1 FY20, to 638,000 subscribers. Revenue was up 33% (29% in CC), a robust outcome in one of Xero’s more COVID-19 affected markets.

 

New Zealand subscribers increased by 13% compared to H1 FY20, to 414,000, with revenue rising by 13%. An acceleration in net subscriber additions from 16,000 in H1 FY20 to 22,000 net subscriber additions in H1 FY21, demonstrated ongoing demand for Xero in its first and most developed market.

 

North America subscribers increased by 17% to 251,000 compared to H1 FY20 as Xero continued to focus on the partner channel. Revenue grew 4% (2% in CC). This reflected the bundling of Hubdoc into Xero Business Edition subscriptions towards the end of FY20, with Hubdoc subscriptions most concentrated in North America. The absence of Xerocon-related revenue also contributed to this outcome.

 

Rest of World continued momentum in subscribers, increasing 37% compared to H1 FY20 at 136,000. Revenue was up 38% (35% in CC). Growth was led by South Africa, and further progress was made in Singapore.

 

Outlook

Xero is a long-term oriented business with ambitions for high-growth. We continue to operate with disciplined cost management and targeted allocation of capital. This allows us to remain agile so we can continue to innovate, invest in new products and customer growth, and respond to opportunities and changes in our operating environment.

 

The continued uncertainty created by COVID-19 means it remains speculative to provide further commentary on our expected FY21 performance at this time.

 

Xero’s earnings webcast

Xero’s H1 FY21 earnings webcast at 10.30am AEDT on 12 November can be accessed at: https://webcast.openbriefing.com/6654/  

 

Pre-registration for the event is encouraged at the above link. A replay of the webcast will be available on Xero’s Investor Centre: www.xero.com/about/investors

Authorised for release to the ASX by the Chair of the Board and the Chair of the Audit and Risk Management Committee.

About Xero

Xero is a cloud-based accounting software platform for small businesses with 2.45 million subscribers globally. Through Xero, small business owners and their advisors have access to real-time financial data any time, anywhere and on any device. Xero offers an ecosystem of over 800 third-party apps and 200 plus connections to banks and other financial partners. In 2020, Xero was included in the Bloomberg Gender-Equality Index and recognised by IDC MarketScape as a leader in its worldwide SaaS and cloud-enabled small business finance and accounting applications vendor assessment.

 

About Subscribers

Xero measures subscribers as each unique subscription to a Xero-offered product that is purchased by a user (eg a small business or accounting partner) and which is, or is available to be, deployed. Subscribers that have multiple subscriptions to integrated products on the Xero platform are counted as a single subscriber.

 

About Constant Currency

Constant currency comparisons for revenue are based on average exchange rates for the 6 months ended 30 September 2019. Comparisons for ARPU, AMRR and lifetime value are based on exchange rates at 30 September 2019. 

About Free Cash Flow

Free cash flow is defined as cash flows from operating activities less cash flows used for investing activities excluding cash used for acquisitions of, and investments into, businesses and strategic assets.

News

Sarah Cannon to Present Latest in Blood Cancer Research at the 62nd ASH Annual Meeting & Exposition

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Today, Sarah Cannon announced that 53 abstracts and presentations authored by Sarah Cannon experts have been selected for presentation at the upcoming American Society of Hematology (ASH) Annual Meeting & Exposition. Held virtually December 5-8, 2020, the ASH Annual Meeting & Exposition will bring together thought leaders from across the globe to discuss innovative research in malignant and non-malignant blood cancer.

Our network of experts are excited to share the latest advancements in blood cancer research at this years ASH Annual Meeting and Exposition, including important advances in CAR T-Cell Therapy and data from innovative studies for beta thalassemia and sickle cell disease, says Fred LeMaistre, MD, Physician-in-Chief of Blood Cancers, Sarah Cannon. We look forward to virtually coming together with experts from around the world to discuss the pivotal research and cutting-edge therapies that are changing the way we treat blood cancer.

Haydar Frangoul, MD, MS, Medical Director, Pediatric Hematology/Oncology, Sarah Cannon Center for Blood Cancer at The Childrens Hospital at TriStar Centennial, will present ˜Safety and Efficacy of CTX001 in Patients with Transfusion-Dependent β-Thalassemia and Sickle Cell Disease: Early Results from the Climb THAL-111 and Climb SCD-121 Studies of Autologous CRISPR-CAS9“Modified CD34+ Hematopoietic Stem and Progenitor Cells during the Plenary Scientific Session on December 6 from 7-9am PST. Dr. Frangoul will also discuss this research during a press briefing as part of the 62nd ASH Annual Meeting Press Program taking place on December 5 from 9:30-10 a.m. PST.

Aravind Ramakrishnan, MD, Medical Director of Adult Blood and Marrow Transplant, Texas Transplant Institute at the Sarah Cannon Blood Cancer Center at St. Davids South Austin Medical Center, will present ˜Phase 1 Alexander Study of AUTO3, the First CD19/22 Dual Targeting CAR T Cell Therapy, with Pembrolizumab in Patients with Relapsed/Refractory (r/r) DLBCL in an oral presentation on December 7 from 9-10:30 a.m. PST.

Additionally, Ian Flinn, MD, PhD, Director of Lymphoma Research, Sarah Cannon Research Institute, will chair the Satellite Symposia ˜Addressing the Medical Need in CLL: How BTK Inhibitors Are Improving Outcomes on December 4 from 7:30-9 a.m. PST and Jesus G. Berdeja, MD, Director of Myeloma Research, Sarah Cannon Research Institute, will participate in an Education Session on ˜The Emerging Role of Targeted Therapies and Cell Therapy in Transplant – Live Q&A on December 5 from 2-2:45 p.m. PST.

The 53 abstracts and presentations represent studies being conducted by investigators from Sarah Cannon Blood Cancer Network and Sarah Cannon Research Institute in affiliation with: Colorado Blood Cancer Institute at Presbyterian/St. Lukes Medical Center- HealthONE in Denver, Florida Cancer Specialists, Texas Oncology at Medical City Dallas in Dallas, Private Care at Guys at London Bridge Hospital in London, UK, Sarah Cannon Blood Cancer Center at Research Medical Center in Kansas City, Mo., Sarah Cannon Blood Cancer Center at St. Davids South Austin Medical Center in Austin, Texas, Sarah Cannon Center for Blood Cancer at TriStar Centennial Medical Center in Nashville, Tenn., Texas Transplant Institute at Methodist Hospital in San Antonio, Texas, Tulane Medical Center in New Orleans, and University of Oklahoma Medical Center in Oklahoma City.

Additionally, ASH Annual Meeting & Exposition posters with Sarah Cannon Blood Cancer Network experts as first authors will be presented by:

  • Carlos Bachier, MD, Director of Cellular Therapy Research, Sarah Cannon Research Institute; Program Director, Sarah Cannon Center for Blood Cancer at TriStar Centennial Medical Center, will present on ˜A Phase 1 Study of NKX101, an Allogeneic CAR Natural Killer (NK) Cell Therapy, in Subjects with Relapsed/Refractory (R/R) Acute Myeloid Leukemia (AML) or Higher-Risk Myelodysplastic Syndrome (MDS) on December 5 from 7am-3:30 p.m. PST and ˜Costs and Adverse Events Associated with Ibrutinib or Ruxolitinib in Chronic Graft-Versus-Host Disease on December 7 from 7 a.m.-3:30 p.m. PST.
  • Minoo Battiwalla, MD, MS, Director of Outcomes Research, Sarah Cannon, will present on ˜Reduction in Transplantation Activity without Impairment in Outcomes in the Covid-19 Era- Data from the Sarah Cannon Blood Cancer Network (SCBCN) on December 7 from 7 a.m.-3:30 p.m. PST.
  • Dr. Berdeja will present on ˜Efficacy and Safety of Idecabtagene Vicleucel (ide-cel, bb2121) in Elderly Patients with Relapsed and Refractory Multiple Myeloma: KarMMa Subgroup Analysis on December 5 from 7 a.m.-3:30 p.m. PST.
  • William Donnellan, MD, Director of Leukemia/Myelodysplastic Syndrome Research, Sarah Cannon Research Institute, will present on ˜Use of Venetoclax (VEN) and Hypomethylating Agents (HMA) in Newly Diagnosed Acute Myeloid Leukemia (AML) in the United States (US) “ Real World (RW) Response, Treatment Duration, Dose and Schedule Modifications on December 6 from 7 a.m.-3:30 p.m. PST.
  • Dr. Flinn will present on ˜Debulking Regimens Prior to Initiating Venetoclax Therapy in Untreated Patients with Chronic Lymphocytic Leukemia: Interim Results from a Phase 3b Study on December 7 from 7 a.m.-3:30 p.m. PST.
  • Henning Schade, MD, Assistant Member Physician, Colorado Blood Cancer Institute at Presbyterian/St. Lukes Medical Center “ HealthONE, will present on ˜HPN217-3001: A Phase 1/2 Open-Label, Multicenter, Dose Escalation and Dose Expansion Study of the Safety, Tolerability, and Pharmacokinetics of HPN217, a Bcma-Targeting T-Cell Engager, in Patients with Relapsed/Refractory Multiple Myeloma on December 5 from 7 a.m.-3:30 p.m. PST.

About The Sarah Cannon Blood Cancer Network

The Sarah Cannon Blood Cancer Network offers patients convenient, community-based access to complex blood cancer care including blood and marrow transplantation (BMT), clinical trials and innovative therapies such as CAR T-Cell Therapy. The Sarah Cannon Blood Cancer Network brings together physician-led blood cancer programs across the United States and United Kingdom and is one of the largest providers of BMT. In fact, it conducts more than 1,200 transplants annually through eight FACT/JACIE accredited transplant centers and has performed more than 14,000 transplants since inception of its first program. The Sarah Cannon Blood Cancer Network programs include Sarah Cannon Blood Cancer Center at St. Davids South Austin Medical Center in Austin, Texas, Medical City Dallas in Dallas, Colorado Blood Cancer Institute at Presbyterian/St. Lukes Medical Center- HealthONE in Denver, Sarah Cannon Blood Cancer Center at Research Medical Center in Kansas City, Mo., Sarah Cannon Center for Blood Cancer at TriStar Centennial Medical Center in Nashville, Tenn., Texas Transplant Institute at Methodist Hospital in San Antonio, HCA Healthcare UK at University College Hospital, Private Care (London), Private Care at Guys at London Bridge Hospital (London) and The Christie Private Care, part of HCA Healthcare UK (Manchester). For more information about the Network and Sarah Cannons full suite of oncology services, visit sarahcannon.com.

Becca Gelman

[email protected]

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Children’s Hospital Los Angeles Offers FREE Flu Vaccination Family Clinic

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Childrens Hospital Los Angeles:

WHAT:

Get your free flu shot at select CHLA Specialty Care Centers. No appointment needed. Available for the whole family. www.CHLA.org/events

 

 

 

 

WHY:

The American Academy of Pediatrics, the Centers for Disease Control and Prevention, and the Infectious Diseases Society of America recommends everyone over 6 months of age receive the flu vaccine every year. With COVID-19 numbers still at dangerous levels, its now more crucial than every to be vigilant about your familys health.

 

 

 

 

WHEN:

Saturday, December 5

 

 

Saturday, December 12

 

 

Saturday, December 19

 

 

 

 

 

9 a.m. “ 3 p.m.

 

 

 

 

WHERE:

Walk-up clinic

 

  • South Bay “ 3440 Torrance Blvd., Torrance, CA 90503 (in the main lobby)

Drive-up clinics

  • Arcadia “ 468 E. Santa Clara St., Arcadia, CA 91006
  • Encino “ 5363 Balboa Blvd., Encino, CA 91316
  • Valencia “ 23838 Valencia Blvd., Valencia, CA 91355

 

(PRESS ONLY)

Lauren Song, [email protected] or 323-203-6737

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Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of Fortress Biotech, Inc. (FBIO) Investors

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Glancy Prongay & Murray LLP (GPM), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Fortress Biotech, Inc. (Fortress or the Company) (NASDAQ: FBIO) securities between December 11, 2019 and October 9, 2020 inclusive (the Class Period). Fortress investors have until January 26, 2021 to file a lead plaintiff motion.

If you suffered a loss on your Fortress investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/fortress-biotech-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.

Fortress develops and commercializes pharmaceutical and biotechnology products. In December 2019, the Company’s majority-controlled subsidiary, Avenue Therapeutics, Inc. (“Avenue”), submitted a New Drug Application (“NDA”) for its intravenous (“IV”) Tramadol product to the U.S. Food and Drug Administration (“FDA”) for the management of moderate to moderately severe pain in adults in a medically supervised health care setting.

On October 12, 2020, Avenue disclosed receipt of a Complete Response Letter (“CRL”) from the FDA regarding the NDA for its IV Tramadol product. Specifically, the FDA advised Avenue that “it cannot approve the application in its present form” because “IV tramadol, intended to treat patients in acute pain who require an opioid, is not safe for the intended patient population.” Specifically, the CRL stated: “[I]f a patient requires an analgesic between the first dose of IV tramadol and the onset of analgesia, a rescue analgesic would be needed. The likely choice would be another opioid, which would result in opioid ‘stacking’ and increase the likelihood of opioid-related adverse effects.”

On this news, Fortress’s stock price fell $1.00 per share, or 23.98%, to close at $3.17 per share on October 12, 2020, thereby injuring investors.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) IV Tramadol was not safe for the intended patient population; (2) as a result, it was foreseeable that the FDA would not approve the NDA for IV Tramadol; and (3) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on LinkedIn, Twitter, or Facebook.

If you purchased or otherwise acquired Fortress securities during the Class Period, you may move the Court no later than January 26, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to¯learn more¯about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Glancy Prongay & Murray LLP, Los Angeles

Charles H. Linehan, 310-201-9150 or 888-773-9224

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

www.glancylaw.com

[email protected]

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Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
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