Xero has reported an operating and investing cash flow of NZ$-22.9 million for the quarter ending December 2014, despite seeing an 81 percent increase in receipts from customers compared to the same period the previous year.

Leon Spencer for ZD Net writes: New Zealand cloud accounting company Xero has reported a negative net operating cash flow of NZ$-8.5 million for the quarter ending December 31, 2014.

According to the Auckland-based company's unaudited quarterly results (PDF), Xero received NZ$32.5 million in receipts from customers, but spent over NZ$44 million on expenses, including staff costs, advertising and marketing, and other working capital.

Xero reported NZ$26.4 million in negative cash flow for the year to date, despite receiving NZ$83.9 million in customer receipts for the nine-month period.

The company's total operating cash flow for the quarter came to NZ$-22.9 million, a greater cash outflow than the NZ$-22.6 million it recorded in the September quarter,

Its total operating cash flow and investing cash flow for the year to date came to NZ$-62.8 million.

The results come as Xero continues its aggressive expansion into the Australian market and further afield, in countries such as the United States and the United Kingdom.

In Australia, the company has been working to wrest small and medium-sized business customers away from the local incumbent MYOB; in September last year, Xero indefinitely extended its free MYOB-to-Xero conversion service. (snip). The article continues @ ZD Net, click here to continue reading....