Xero suffered a loss in the first half of the year, despite an increase in revenue of more than 20% in the six months leading up to September 30.

The company reported a loss of NZ $ 5.9 million for the first half of the year despite rising operating profit 23% to NZ $ 505.7 million.

The number of subscribers also increased 23 percent, to 3.01 million, with net subscriber additions climbing 62 percent to 272,000.

Average revenue per user was also higher, increasing 5 percent to NZ $ 31.32.

The company said the loss reflected an increase in the level of investment spending in sales, marketing and product development.

“Small businesses around the world are increasingly recognizing the critical importance of digital tools to help them adapt and succeed in a changing operating environment. This is reflected in Xero’s performance in the first half of 2022, where we saw strong growth in revenue and subscriber numbers, ”said Steve Vamos, CEO of Xero.

“We’re committed to providing the world’s most insightful and trusted small business platform to improve the lives of people working in small businesses, their advisors, and communities around the world. To support this, we continue to prioritize investments in product development and partnerships, and execute our strategy to meet the changing needs of our customers in the short and long term.

Xero did not declare a dividend.