Xero Limited (XRO) Q2 2024 Earnings Call

Investor webinar replay

Watch the replay and follow the connected company analysis, news, and investor updates for Xero Limited.

Watch the replay

Replay transcript excerpt

WEBVTT 00:00:01.145 -- 00:00:03.870 Thank you. Good morning from Sydney, Australia. 00:00:03.870 -- 00:00:07.836 Thank you for joining our investor briefing today covering Xero's financial and operating 00:00:07.836 -- 00:00:12.684 results for the half year ending the 30th of September, 2023. 00:00:12.684 -- 00:00:16.511 I'm Sikandra St. Cassidy. This time I'm getting it right, I think. 00:00:16.511 -- 00:00:20.397 And I'm with Christy Godfrey-Billy, our CFO. 00:00:20.397 -- 00:00:24.263 Our first agenda item is an introduction and summary of Xero's performance during the 00:00:24.263 -- 00:00:29.245 half. I'll then pass to Kirstie to cover our financial results in detail before I finish 00:00:29.245 -- 00:00:35.049 with strategic themes and Xero's outlook. We'll then move to Q&A. 00:00:35.412 -- 00:00:40.235 So, moving on to a summary of our results on slide five. 00:00:40.577 -- 00:00:44.621 I'll touch on a few of the key metrics here, and Kirstie will discuss them in more detail 00:00:44.621 -- 00:00:46.063 later. 00:00:46.063 -- 00:00:49.224 Revenue grew 21% to $799.5 00:00:50.408 -- 00:00:54.160 million. Headline EBITDA of 206.1 00:00:54.160 -- 00:00:56.644 million is up 97.5 00:00:56.644 -- 00:00:58.926 million on last year. 00:00:58.926 -- 00:01:03.572 Operating income of 67.4 million increased 46.7 00:01:03.572 -- 00:01:05.675 million year-on-year. 00:01:05.675 -- 00:01:11.042 This strong operating result drove free cash flow generation, with free cash flow increasing 00:01:11.042 -- 00:01:12.784 to 106.7 00:01:12.784 -- 00:01:17.971 million. This reinforces the strength of Xero's fundamental business and shows 00:01:17.971 -- 00:01:21.672 we are starting to balance growth and profitability. 00:01:21.672 -- 00:01:26.735 So now moving on to the two key themes ...