The accounting software provider Xero has expanded its cloud management with its subscribers growing by almost 14 percent in the first half to 1.579 million.
The subscriber jump coincided with a 37 percent revenue increase to $ 256.5 million ($ 239 million) in the first half, ending September 30.
But the company's fast growing net loss also widened from $ 19.6 million in the NZ to the previous period to NZ28.6 million.
Xero Executive Director Steve Vamos said that the business will continue to focus on growth while improving cash flow margins.
"Xero's first half-year results show strong top and bottom results, greatly improving cash flow margins and average revenue per user," he said.
"We continue to focus on disciplined implementation of our strategy to promote growth, while improving financial performance through operational efficiency.
"Xero is in a very good position to use organic growth opportunities and, after the end of October, for our US $ 300 million convertible bonds issue, we have the financial flexibility to target additional purchases and investments."
Xero results are the main competitor in Australia and New Zealand, MYOB, is a potential takeover offer from the US private equity giant KKR.
If the board has unanimously approved an outsourcing bid of US $ 3.77 per share, and the KKR will complete its due diligence, it will be the third private equity owner of MYOB.
Two companies dominate the $ 3 billion domestic market, and Morgan Stanley's June report indicates that although MYOB still had more than 50% market share in the total accounting software industry, Xero was up to 40 percent.
It ordered that in the next five years, the share of MYOB would drop to 30 percent, "appropriately" to what it currently holds in the chip-based software market, a market dominated by Xero.
Australia and New Zealand are still the largest market for Xero, and now the company has shut down 1 million subscribers, subscriber numbers in the region are up 24 percent to 981,000 subscribers.
The company also had rapid growth in the United Kingdom and North American markets, with subscribers growing to 355,000 and 178,000 respectively.
The North American market, in which Xero attracted 68,000 new customers, benefited from US $ 70 million from the Canadian technology company Hubdoc, which invested 19,000 new subscribers.
The Hubdoc trackback was the largest Xero ever created and marked by the first major strategic gentleman Mr Wamos has taken since the founding member of Rhodes Drury's role in March.
"Our acquisition of Hubdoc provided the core element of the Xero Non-Code-based Accounting Strategy, allowing small businesses and their consultants to focus more on document processing and more on their business," said Mr Vamos.