Subscription revenue increased to $290m, up $88m over FY16 - growth in constant currency was 52%.

Earnings before interest, tax, depreciation and amortization (EBITDA) excluding share-based payments, turned positive to $1.6m in the second half of the financial year. Operating cash flows for the second half of the financial year were also positive for the first time, at $9m. Full year operating cash outflow reduced to $4.4m from $34.8m in FY16.

Rod Drury, Xero CEO, said: ‘It has been a milestone year for Xero, achieving operating cash flow break-even in the second half of the financial year, and doubling subscriber numbers in less than two years to pass the one million subscriber mark, while completing our major re-platform to Amazon Web Services.’

With 1,035,000 subscribers at 31 March 2017, Xero added 318,000 subscribers in the last year. In the UK, the supplier took on an additional 79,000 subscribers over the year, bringing its total to 212,000.

Annualised committed monthly revenue (ACMR) reached $359.7m, representing a constant currency increase of 45% year-on-year. Xero said it had improved cash flow performance through the year and operating metrics are expected to improve in FY18 as Xero drives efficiencies through automation and economies of scale.

Drury said: ‘Recording more than $1.4 trillion worth of incoming and outgoing transactions in the last year, Xero manages a unique global graph of business transactions, enabling the development of machine learning to create new experiences for small businesses. We believe the application of machine learning and AI to accounting will unlock significant productivity for our accountants, bookkeepers and small business customers.’