Xero Ltd (ASX: XRO)
Xero Ltd (ASX: XRO), on 15 May 2025 shared strong financial results for FY25. Operating revenue rise by 23% to $2.1 billion and a 22% boost in adjusted EBITDA to $640.6 million. The operating expense to revenue ratio stood at 71.8% leading to free cash flow of $506.7 million and a margin improvement to 24.1% from 20.0% in FY24. The Rule of 40 metric touched 44.3% maintained by solid revenue growth and disciplined cost management. AMRR rose 22% to $2.4 billion due to 11% ARPU and 10% subscriber growth, excluding the removal of long idle subscriptions. Monthly churn averaged 1.03% reflecting strong customer retention. Total LTV increased 16% to $17.9 billion.
XRO advanced its 3x3 strategy across accounting, payroll, and payments in its main markets. In accounting, it launched Xero Simple in the UK expanded US bank feeds and released end-of-period reconciliation. In payroll, it improved auto super in Australia, launched Rostering in beta and enhanced UK features. In payment, it allowed Tap to Pay on mobile, transitioned all users to new invoicing and expanded bill payment solutions in the UK and US.
ANZ revenue climbed 21% to $1.18 billion and subscriber numbers at 2.6 million. International markets delivered 24% revenue growth to $925.6 million, 21% ARPU growth and subscriber growth to 1.8 million. UK performance reflected successful product execution. US saw improved subscriber momentum in H2, while Canada showed slow cloud adoption.
LIFE360 Inc (ASX: 360)
LIFE360 Inc (ASX: 360), on 13 May 2025 achieved a strong 1Q of 2025. Total revenue touched $103.6 million, reflecting a 32% YoY increase. Subscription revenue rose 33% to $81.9 million and core subscription revenue increased 37% to $76.2 million. Annualized Monthly Revenue reached $393.0M, up 38 percent from the previous year. The company achieved net income of $4.4M maintained by dividend and interest income of $2.0M and a $0.2 million income tax benefit. Operating cash flow rose 13 percent YoY to $12.1M. Quarter end cash, cash equivalents and restricted cash stood at $170.4 million, a $95.8 million rise from the prior year mainly due to capital raised through the U.S. IPO in Q2'24.
Total Monthly Active Users increased to approximately 83.7 million, rising 26% YoY reinforced by 4.1 million net additions. U.S users grew 17% while international users rose 39%. Triple Tier market users in the UK, Canada, and ANZ rose 36%. U.S. Paying Circles grew 24%, international Paying Circles 33% and Paying Circles in Triple Tier markets increased 26%.
Average Revenue Per Paying Circle rose 8% YoY due to U.S. and international price adjustments, new tier launches and product mix changes. Hardware unit shipments fell 8%, though average selling price rose 3%. Annualized Monthly Revenue for March rose 38%. For full year 2025, expected revenue ranges between $450 million to $480 million and Adjusted EBITDA is expected between $65 million to $75 million.
(Source: Company Announcements)
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