Today we announced our FY15 results.
The incredible momentum and exceptional performance we were able to report is in large part due to the 1,161+ Xeros, 475,000 small businesses, and tens of thousands of bookkeepers and accountants around the world. Thank you.
You are all part of a revolution in small business software – one that makes thriving simpler, easier and more connected for owners and advisors.
While you can read more in this morning’s market release I wanted to share a few of the highlights with you:
- We’ve become one of the fastest growing Saas companies. Our subscription revenue grew 81 percent to $120.9m and operating revenue was $123.9m, up 77 percent from $70.1m in FY2014.
- Xero has emerged as the leading cloud accounting solution in three countries – New Zealand, Australia and United Kingdom. In fact, if you added up our customers in those three markets they would exceed the total cloud customers of the incumbents in those markets too.
- Our paying customers grew to 475,000 small businesses, up 67 percent on last year. Our recurring revenue model means that we started the 2016 financial year strongly with $159.3m in annualised existing revenue, a 71 percent increase on the same time last year.
- We are seeing the early positive signs for US growth, strengthened our US management team, and are primed to move forward fast.
- We continued to invest for growth and scale – including in talent to ensure we have the leadership, capability and capacity in place globally to allow this company to flourish and grow globally at scale.
- We have also maintained a strong cash position with $269m of cash to continue to invest in creating long-term shareholder value and, of course, a beautiful user experience.
FY15 was about building our team up to critical mass. We onboarded more than 400 talented people – that’s a whole lot of new jobs in product development, design, support and sales and marketing. We’re extremely proud to have grown the global team to 1,161 Xeros while continuing to drive strong revenue and customer growth across all markets.
But our real goal is helping the entire small business economy to thrive. As we create one job at Xero, we hope to create hundreds if not thousands of jobs across the small business economy by enabling those small businesses to thrive through better access to information, insights and advice.
It’s beautiful software – purpose built for small businesses – that makes this possible.
Our platform now provides the most comprehensive small business accounting experience for customers. We are not just rivaling desktop solutions but now exceeding them. In many ways, FY15 was the year in which we closed the first chapter on Xero and started the second, unleashing the full potential of running nearly any core business function anywhere, anytime from any device.
More than 500 updates were delivered to Xero users in the last financial year. That’s from listening and responding to our customers’ needs and, continually improving their experience while rolling out some pretty big products like payroll, quotes, invoices and inventory. We’ll continue to add value to small business and financial advisors through continued innovation – and we’ve got some exciting plans ahead that we know will be game changing. Xero is a powerful tool that has even more potential to deliver insights and add value through data driven advice.
From May 2015, Xero Partners and their customers who bank with NAB will have coverage of all accounts available in NAB internet banking. Such large ambitions are never simple to deliver. But with the help of virtual teams across our businesses, we’ve developed a game-changing experience for NAB and Xero customers.
What can small businesses look forward to?
From May 2015, Xero Partners and their customers who bank with NAB will enjoy full coverage of NAB accounts. That’s over 200 products and 35 account types. This seamlessly integrated, automated experience gives small businesses a holistic view of their business. It will help them make decisions based on a complete financial picture. All products available in NAB internet banking will be available for Xero Bank Feeds. This includes loans, offset accounts and credit cards.
But we’re not stopping there. The two-way, online authentication opens the door to new possibilities for small business accounting. Our teams connect closely with NAB’s, and Xero will continue to lead innovation in cloud accounting.We’re working hard to bring new features to our product soon. This will allow small businesses to get on with running and growing their business.
Key facts around how we are innovating with NAB
- This is not just an online form like some have experienced before. Feeds are set up immediately and automatically, with data flowing overnight and available the next day.
- NAB is the first Australian bank with core API technology linked to Xero’s accounting cloud ecosystems.
- Xero is one of the first external partners to connect through NAB’s API platform – linking a customer’s internet banking profile to their Xero account.
- The API technology used to connect Xero and NAB has opened up new possibilities. We’re talking linking payroll, processing accounts payable, and speeding up approvals.
So if you’re a Xero customer with National Australia Bank, you’ll be invited to experience direct bank feeds. Simply put, it’s easier to track your finances when you’re on the go.
What happens next?
Read more about Business
Following on from our recent post about many of the ways Xero speeds up your workflow, today we’ve made a few more improvements to add efficiency and accuracy to what you do.
Inclusive/exclusive tax settings
Do you sell to both retail and wholesale customers or suppliers? Are some of your sales invoices inclusive of tax and others exclusive? Good news!
Today we’ve added new tax settings at both an organisation level and an individual customer level. This will give greater accuracy when invoicing and more flexibility when dealing with different types of customers (eg wholesale vs retail).
You can now set sales tax defaults for either Sales or Purchases for your contacts in the contact edit screen:
The majority of businesses in Xero transact on a sales tax exclusive basis. But regardless of the basis you can set your business sales tax settings for Sales and/or Purchases in the financial settings page:
- You’ll still be able to change the tax on an individual invoice/bill etc, however the next new invoice will return to your default tax setting (as listed above).
- The contact default tax setting will take priority over the organisational default tax setting.
We’ll be bringing this option to quotes and purchases orders soon. Keep a look out for it!
Displaying more references
People use the ‘Reference’ field in Xero for all manner of things. However, references are often hidden and you’ve got to go hunting to find them. That changes today! On both the bank rec and account transaction page you now get served up a little more detail about the transactions you’re looking at, including document references, payment ribbon references and check numbers.
Find & Match has an updated look to provide more space for additional references:
At Xero we love bookkeepers (and I happen to be one!). Anyone who has worked in the industry knows what it’s like to open a client’s file and see pages of things begging to be fixed. It’s a grind. As small business owners ourselves, we are always looking for ways to be more efficient.
Until today, you could only make edits to one transaction at a time in Xero. However, with Find & Recode for advisers, up to 2000 line items can be updated at once. Accounts, tax rates, tracking and contacts can be easily updated on both paid and unpaid transactions.
Where you may have spent hours previously, it now takes only seconds to get things right. Xero does the work for you!
This changes the economics of bookkeeping. Cleaning up accounts in Xero is now done at lightspeed.
There are two parts to Find & Recode, the ‘finding’ and the ‘recoding’.
Step 1: Find
Have you ever wanted to:
- filter for all line items associated with a specific account and tax rate?
- ensure that all spent items over a specific amount threshold are correctly coded to asset accounts?
- check the accuracy of items entered by the overly enthusiastic new intern?
- clean up contacts that have been entered in a sloppy fashion? Perhaps: N Gallagher, Noel G, Oasis LLC are all the same contact and need some tidying?
- drill down to line items that have had tracking accidentally left off them?
- or some other simple or not-so-simple selection of line items?
Well, now you can. A full set of search conditions is included so you can easily find exactly the line items you’re after. These conditions include: date, contact, account, tax rate, user who entered the transaction, tracking and more:
All search results are linked to the source transaction; making it easy to review the details of what needs changing:
Read more about Accountants
This World Creativity and Innovation Week (15th – 21st April), Clemi Hardie, Head of Pencils at London-based event technology company Noodle Live, tells us how creativity and innovation helps improve the event experience for her clients’ customers.
World Creativity and Innovation Week is a week focused on encouraging people and businesses to get their creative juices flowing and make the world just that little bit better. If you could do anything, what would it be and how would you do it?
As an event technology company, Noodle Live has always embraced innovation and creativity. It’s ingrained in everything we do. The seed of our business came from a desire to innovate and offer a better solution to the established norms. Our RFID enabled smart badges are now disrupting the events industry, enabling people to collect, share and store information easily in ways that they couldn’t previously. And that’s a direct result of not being happy with the status quo.
For Noodle Live, creativity is really important. It’s an ability to look at problems and challenges in new ways, and that’s what we’re all about. Technology is sometimes lambasted for killing creativity, but this is certainly not our experience. We find that it can in fact unlock the creativity that may lay dormant within us. Our clients and end users, motivated by using our event technology, regularly create new use cases for us as they realise the potential of our event tools.
Read more about Business
With the release of the SMSF tax return for 2014 last week, our essential form types on our Australian Tax roadmap are now completed. We now have Individual, Partnership, Company, Trust, FBT, and SMSF. That means Xero Partners can now use Xero Practice Studio for all of their ATO lodgments.
Find out more about recent changes in our Practice Studio Help Centre.
We’ve released several major and minor enhancements this year, plus we’re on track to release the complete 2015 tax return form series in early June.
How do I get Australian Tax?
Australian Tax is an integral part of Xero Practice Manager. It’s available as part of Xero Practice Studio. Our practice tools are completely free for Silver and above partners, or can be purchased for a monthly charge. Continue reading ›
Read more about Accountants
Last week I was honoured to be part of a launch event in Singapore to mark a new alliance agreement between Xero and KPMG Singapore. It’s exciting to have one of the big four global accounting firms as our first Platinum Partner outside of the US, UK, AU and NZ.
What does this mean for Xero?
This new alliance with KPMG Singapore strengthens our presence in Asia. It also further demonstrates an appetite for Xero in our growing global markets.
Singapore is one of the world’s largest city states, boasting a population of 5.4 million in a land mass only 0.26% the size of New Zealand. Singapore has a vibrant entrepreneurial community with many opportunities for SMEs and startups. This is spurred on by its numerous small business, innovation and productivity incentives.
KPMG hosted a launch event for our alliance with Action Community for Entrepreneurship (ACE). The event was hosted at one-north, a shared office space for startups and entrepreneurs. The space is subsidiszed by the Singapore Government. Flanked by Singapore’s leading universities, this space was created house today’s start-up talent and cultivate tomorrow’s business success stories. Continue reading ›
UK and US small businesses can now avoid hefty hidden bank fees when paying foreign currency invoices thanks to a new integration between TransferWise and Xero.
Using TransferWise, a London-based foreign currency transfer business, small businesses can now save up to 89% when sending foreign currency invoices directly from Xero. Avoiding hefty 3-6% commissions from banks, businesses are offered a fair mid-market exchange rate and charged a small, transparent fee of no more than 0.5%.
How does TransferWise work with Xero?
Xero customers can sign up and log in to TransferWise to see their outstanding foreign currency invoices on Xero. They can then select the invoice they want to pay using either a bank transfer or debit card through the TransferWise system.
The exchange rate at the time of the transfer is locked in for 24 hours and the user will need to pay the amount to TransferWise during that time. Payments typically arrive within 1-2 business days. Users will be notified via email that the money is on its way, and after the payment is completed, the bill is then reconciled onto the user’s Xero dashboard.
Read more about Add-On
#Human is a value that every Xero holds near and dear. Now the Denver Post believes in the power of #Human, too, and has named Xero as one of the best places to work.
This award holds special meaning. Why? Well, because the Denver employees themselves nominated Xero for the award. Thanks to their passionate feedback (see the comments below), Xero received recognition as one of the Top Workplaces for 2015.
That’s just #Beautiful.
So a round of applause to the Operations, Sales and Customer Experience Xeros inside the Denver office. A big reason we’re a top place to work is because of all of you. Thank you. #YouRock
You can love Xero, too
The Xero team is growing, with plenty of opportunities around the world. Get ready to experience the love: Check out our careers and join the Xero team today.
Check out some comments from Denver Xeros:
“The work that I do is enjoyable, the people that I work with are great to be around, the environment is lively and upbeat, and the management is nothing but supportive and always there to help me do my best work.”
“If I request something that will make my job easier it’s always given. [And I receive] constant recognition from management and support when I’ve gone through some hard times.”
“I never thought I would enjoy going to work. I look forward to doing my job and seeing the people I work with.”
In this guest blog, Laura Beatrix Green from MarketInvoice discusses the challenges of growth, how to avoid them and how those unexpected happenings can be the making of you.
Recent years have seen record levels of new business start-ups in the UK, meaning there are hundreds of thousands of new entrepreneurs looking to make their venture a big success. The relative strength of the UK economy means this is a great time to be growing a business.
Investing for and managing rapid growth creates different challenges for all businesses, but there are some basics that apply universally. For many business owners, growth isn’t a priority. For some it isn’t even a distant wish. They’re happy with a comfortable stasis that pays the bills and brings in a nice income. For others, growth is the name of the game, follow these tips to avoid the pitfalls that could accompany your success.
Read more about Add-On