Xero shares sink to 15-month low despite revenue growth

Investors apparently expected more from Xero, with its shares down 3.8 per cent in morning trade. (Joel Carrett/AAP PHOTOS)

Xero shares have hit their lowest level in more than a year even as the New Zealand-based cloud accounting platform posts double-digit revenue growth and $NZ321.1 million ($278 million) in free cash flow.

The Kiwi cloud accounting platform grew operating revenue by 20 per cent to $NZ1.19 billion in the six months to September 30, with its adjusted earnings climbing 12 per cent to $NZ350.9 million.