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Annual Meeting 2014 – our biggest yet

The event we look forward to most at Xero is our Annual Meeting. It’s when we get a chance to meet our shareholders face-to-face and show them what we’ve been doing, how the business is going, and what our plans are for the next year.

We had a great turnout this year– with a huge number of shareholders present and some big news to share.

The video below shows some excerpts from Chairman’s and CEO’s presentations.

PDFs of the presentations can also be downloaded on our website:

Xero Investor Reports and Presentations

Thanks to all who attended the Annual Meeting

To our valued shareholders – thank you so much for your ongoing support. We’re all very excited about where we’ll be in the next 12 months.

 

Read more about Company News

 

16 comments

Romeo
24 July 2014 #

Thank you guys for the video. Yeah, we’ll forget about the share price for now as we anticipate an excitement that the next 12 months will bring.
We will support your “vision”.

David Price
25 July 2014 #

I also believe the “Xero vision” looks promising, but I am disappointed that in every Xero report I’ve read there has been no mention of Xero paying a dividend to its shareholders. Is there a time frame, or market target in mind, for the investors to get something back for their investment?

Rodney
25 July 2014 #

Awesome presentation!

Rayner Wallen
25 July 2014 #

I am a silver xero partner here in New Zealand and happy with the product. I am concerned that both Rod Drury and Veronica Crone have stated that they intend to enable clients to file their own tax returns. I am concerned that after using accountants and bookkeepers to promote the product that you may intend to take the business away once we have got it for you. I beleive this is what Intuit has done in the states and xero is using this as a reason for CPA’s their to switch but now xero seems to be planning to do this here.

What is your comment on this please?.

Rod Drury
25 July 2014 #

@david Can we not be more clear that we have 100′s of millions in cash to execute a growth strategy. If you are looking for dividends you should be investing in infrastructure companies.

@Rayner – We believe accountants should check everything first, do monthly management accounts and then file a clean set of books and return. There is no doubt we are working hard to reduce small business compliance costs so you should be working towards selling your services as a monthly bundle and provide valuable advice, so you capture the benefits and can help more small businesses grow. Technology is all about driving productivity for all. Online GST filing is an inevitability, if not us it will be anyone else. Xero has clearly demonstrated its commitment to accountants for 8 years we’re not about to change that. We are actively creating new ways for accountants to create value. For example you can now provide Accountants Payable services using our new Banking 2.0 services. You can service clients anywhere in the world. We have accountant only features. We provide your tools.

But I get very concerned when I hear accountants trying to preserve the status quo – especially archaic manual processes. You need to be embracing change and take the massive opportunities we are providing. We have proven our commitment to accountants and provided a roadmap for change. Come along to any of our events and we’ll set your mind at ease.

Rayner Wallen
25 July 2014 #

Great answer thanks.

Charles Klvana
25 July 2014 #

@rod Well done on the past year, I’m looking forward to further growth, as it has certainly benefited us over the past 4 years. As you know I certainly don’t fall into the bracket of “advisors preserving the status quo” however I think there is something to be said for making it too easy for business owners to file their own returns and other documents to the tax authority.

For example, this year Xero launched the ability to lodge the end of year payment summaries for employees directly to the ATO in Australia. Consequently we had at least 5 clients do this all by themselves without asking/checking with us first and it was completely wrong. In the mean time their staff went to lodge their tax returns, and now as a result must lodge amended tax returns.

MYOB always had a lot to answer for in it’s misleading advertising that you could “mind your own business” just by purchasing MYOB. Xero too must be more pro-active in ensuring that it reminds business owners, that just because they CAN lodge directly, doesn’t mean they SHOULD.

It’s creating incorrect lodgements, and MORE work for us advisors (who might be on “fixed monthly fees”).

A really big (touch friendly) tick box that says “Are you really, really SURE you want to lodge this document. Have you checked with your advisor?” should suffice! haha! :)

Rod Drury
25 July 2014 #

@charles yes, very aware. We have not at all decided how to implement GST filing. We’re focussed on getting the IRD to make it available first.

We’re very keen on this feedback from small business owners, bookkeepers and accountants. How should we implement?

The persona’s we need to deal with include small business owners that are not accounting experts (how do we ensure they don’t screw up) as well as expert business people who are very comfortable with GST filing.

We also need to think how we should preserve the value of accountants by making it clear of their value add.

I think we have a good understanding of the issues and would love to hear your thoughts on the right balance.

I agree Charles, a warning absolutely makes sense. Perhaps the accountant can ‘pass the keys’ to their customers if they of a type that can do their own GST filings.

Let us know your thoughts.

Rayner Wallen
25 July 2014 #

@Rod. I have no problem with clients filing their own GST returns I was actually talking about income tax returns. I don’t think many accountants would have an issue with clients filing their own gst return.

If you enable clients to file their own income tax return (in the clients eyes) you have made the accountant redundant. You are not helping the client because they will file incorrect returns and will not seek the accountants advice and guidance because the relationship is broken. Advice has to be hooked on to preparing financials and tax returns. People generally don’t like paying for advice and guidance but they are happy to pay for tax returns and financials.

I would say keep away from enabling customers from doing their own income tax returns it doesn’t help them and doesn’t help accountants.

In a nutshell we can value add but there needs something to add value TO and the income tax return and financials are what we add value TO.

Thanks

Rod Drury
25 July 2014 #

@rayner We are not at all planning to provide direct income tax filing in our small business product. We only file from Xero Practice Studio which is accountants only. Hopefully that sets your mind at ease.

We are seeing many more customers paying for proactive business advice and other services as accountants augment their services leveraging new tools like Xero. For those that don’t – there will always be pure compliance customers – we suggest providing the service on a value pricing basis so that you can bank the improvements in technology and use the time saved to provide additional value.

Estelle
25 July 2014 #

i’ve recently reworked a few messy files from bookkeepers and accountants. What about leaving it to sme’s who think they’ll just do it themselves to save money. I come accross sme’s asking me to just quickly lodge their BAS’s, all the work is done but yeah i have to make a lot of adjustments to what they thought was correct. Surely a qualified employee/business owner or if overseen by a qualified person will be able to do the procees, as long as there is warnings as mentioned before. I do embrace change, just from experience i found too many think it’s easy to do and do claim incorrect. This will be more a concern for the ATO i think.

Ricardo
27 July 2014 #

@Rod, If Xero shares will be listed in US Stock Exchange (Nasdaq) next year, How much do you think will be the IPO price? Would it be similar to the share price of Australia and New Zealand?

Danetha Doe
27 July 2014 #

This was fabulous! Thank you, Rod, for being very thorough and communicating the passion and skill of Xero and its team. I took a lot of notes and do have some questions that I will post later. In the meantime, is it possible to see/hear the questions from the shareholders and the answers? Thank you for sharing this video with us!

Timothy Munro
27 July 2014 #

Hi Rod – If you delist Xero in Aust before you list in USA, what’s the plan for Aust shareholders? Do we get a slice of the USA party automatically or will we have to buy at float? Thanks!

Rod Drury
27 July 2014 #

@Richardo depends on how well we go this year

@Danetha Thanks. Can’t remember anything significant. Feel free to ask anything

@Tim We’ll take advice on best listing structure this year. You can be sure that we’ll look after all shareholders and it should be very positive for all. No plans to delist anywhere at this stage.

Prospective Investments
13 August 2014 #

Our view on Xero’s future. May be of interest to some.

http://www.prospective-investments.com

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