50,000 customers

Developing a great product is one thing but selling your dream to the world is another, and as every business owner will testify nailing each rise in customer number – especially in the early days – is a huge effort. Then once you’ve reached the goal for the year you brace yourself for the next push. The theory is it does get easier, especially as the pace quickens.

So it’s with great pride we announce today that Xero has passed the 50,000 paying business customers milestone. This is a mammoth achievement for the team and those, who like me, can remember it wasn’t that long ago when we were scratching to get our first 1,000 customers.

We’re really noticing now how the scale is working for the business. While those customer milestones keep rising, the speed at which we hit those numbers is accelerating. What’s also exciting is the global reach Xero now has – 40 percent of our customers are based outside of our home market. Having 200,000 active users in over 100 countries is very cool.

Another significant number we released today is that we’ve processed NZ$50 billion in transactions since we started four years ago. That blows even us away.

The scary thing is that it’s still early days.

Thank you to our valued customers for your support.  We know we still have a lot to do.

24 Comments

Kelvin Hartnall
September 9, 2011 at 3:09 pm

Congratulations!! Based on your announcement of 45,000 on the 21 July, that is an addition of 5,000 customers in exactly 2 months, which is an annual rate of 30,000 new customers a year. I also note that this was achieved during what is normally a quieter period for Xero. The end of year for most of Xero businesses are either 31 Mar, 7 Apr, or 30 Jun, and it is around these dates that businesses are most likely to adopt or change accounting software. So an annual rate of 30,000 new customers per year probably understates the current growth!

Anna
September 9, 2011 at 3:39 pm

Congratulations on the growth!

Will you ever break down the customer numbers per country? It would be interesting to see how many customers you have in Australia, United Kingdom, and United States etc.

dave
September 9, 2011 at 3:45 pm

congratulations! that’s awesome guys. Hope that you all take at least a couple of hours out to celebrate.

Can you please clarify whetherthat’s 50,000 customers on Xero business or whether that includes Xero personal.

Laura Humphreys
September 9, 2011 at 3:53 pm

That’s an awesome result. Well done Rod, makes us proud to be in business in New Zealand.

Rod Drury
September 9, 2011 at 4:05 pm

@Dave Amended the blog to be clear. It’s paying business customers only

@Anna More detailed information will be in our Interim result, probably in November

@Kelvin What we tend to see are step ups in volume. For a few months we’ll do similar numbers, and then it steps up a bit and so on. Really hard to predict what the numbers will be as so many factors. As we do more globally we hope the seasonal variances even out a bit.

dave
September 9, 2011 at 5:09 pm

even better :):):):)

Mat Cagney
September 9, 2011 at 5:28 pm

Congratulations guys, good effort.

Tina Kaye
September 9, 2011 at 6:35 pm

Well done Xero team. Congrats on designing a product that is so lovable! We look forward to helping your exponential growth from here!

Earl Rudolfo
September 9, 2011 at 2:00 am

Congrats to the Xero team! Looking forward to seeing the break down by customer numbers per country. Also some time lines (if possible) of how long customers have been using Xero. Should be interesting to hear who is the longest customer on Xero. May make a great story -:)

Sue Hirst CFO On-Call
September 9, 2011 at 1:05 pm

Congratulations – your enthusiasm and that of your team at Xero is inspiring!

Gayle Buchanan
September 9, 2011 at 1:48 pm

congrats Rod – love that you are quoting business customers only numbers – way to go you and your team

Alistair Tod
September 9, 2011 at 9:10 pm

It was a mate 3 years ago whilst playing squash who asked me if I knew of Xero. Took one look, signed up and have never looked back. The historical info now available to me by click of a mouse has added a new dimension for budgeting in the future which is fantastic. Rod and team – great work – you have a great business model which will revolutionise cloud accounting….but you already know that…!!!

Xero Targets U.S. Growth | Evan Hugh
September 9, 2011 at 9:23 am

[…] recently celebrated acquisition of its 50,000th paying customer, with company founder and legendary serial technology entrepreneur Rod Drury […]

Kelvin Hartnall
September 9, 2011 at 11:00 am

@Anna I understand that accountants are the most important channel for Xero, so I assume that the number of listed accountants per country is a reasonable proxy for where the growth is coming from. Tracking this I can see that there is significant growth occurring in Australia. Australia was the third market that Xero targeted and based on current accountant growth, I suspect it will surpass New Zealand before the interim results. Using this as a proxy, it is also worth noting that the UK has had subpar growth and the number of listed accountants is nearly half of NZ despite the UK being a much larger market. If Xero provides a better breakdown in the interim results it will be interesting to see how this correlates with the number of listed accountants.

@Rod Thanks for the comment. With growth being lumpy, it would be interesting to know what the main drivers of growth seem to be. And it would be really interesting to hear more about the challenges being faced by Xero UK. I imagine that there must be different competitive factors in the UK market versus Australia that alters the uptake of a service such as Xero. As a shareholder and fan of Xero, these are the questions that really interest me.

MikeBlockCPA
October 10, 2011 at 11:08 pm

50,000 users is obviously impressive, but the Xero website recently referred to 200,000. What is the difference?

Rod Drury
October 10, 2011 at 6:16 am

Hi Mike, 50,000 paying business organizations running on Xero with 200,000 users.

Last numbers I heard from Intuit were 230,000 QuickBooks online users. Not sure what they count as a user but would love to know how many actual paying organizations they have as a benchmark if anyone knows.

Cheers

Rod

Bruce Clow
October 10, 2011 at 7:28 am

Hey Rod, I just recently got put onto Xero by my accountant, and having been a CA myself for some years and even teaching accounting and finance, and now having my own manufacturing business, I am hooked! I bought MYOB years ago and spent so much time trying to figure it out and use it, I just put it all back in the box and used spreadsheets.

Now, with Xero, and about one hour of tutelige from my accountant I love this tool! My accountant and I even giggle and laugh about it, it is so fun to use. And the best thing is it is forgiving. I’ve never done anything that couldn’t easily be reversed or recovered.

Thanks so much and all the best for the future.

Cheers

Bruce

Rod Drury
October 10, 2011 at 9:14 am

Our design team lives to make grown men giggle, so thank you for that feedback!

New user
October 10, 2011 at 9:21 pm

Started using this awesome tool this past weekend. Signed up today. WOW. Congratulations on your ongoing success Xero. You deserve it – making accounting relatively easy..

Kelvin Hartnall
December 12, 2011 at 2:23 pm

Just noticed this weekend that the number of listed Australian accountants is now equal to the number of accountants listed in New Zealand! Both countries have 399 registered accountants. As per my previous comment, I assume that accountants are the most important channel for Xero and therefore a reasonable proxy of the level of growth occurring in each country. So congratulations again!

Anna
December 12, 2011 at 1:13 am

I agree with Kelvin, it is nice to see Australia has caught up, but the growth in the New Zealand has slowed. They have only added 5 Accountants and 2 Bookkeepers in the last month. United Kingdom has only grown by 6 Accountants and gone from 16 to 15 Bookkeepers using my own records I keep.

Webmasters at Xero should fix the website link for Crecer Business Performance under United States Advisor. It has been broken for at least 3 weeks. The link redirects you to link within Xero instead of crecerbusinessperformance.com

Another problem I have found wrong Advisors & Services directory is when you click on More Location link then click New Zealand or any other country etc from the drop down menu. You will need to click on Accountants link to see New Zealand Directory. It would be easier if the directory list of each individual country would appear without having to click on Accountants link.

Anna
December 12, 2011 at 8:33 am

The drop down menu problem only happens when I’m using Firefox. I don’t get this problem when I use Internet Explorer.

Kelvin Hartnall
December 12, 2011 at 1:18 pm

@Anna. I’ve also reported some discrepancies with the ‘Advisors & Services’ directory to Xero in the past. One I’ve just noticed recently is that there are a couple of accountants in the US (LucidBooks in Utah and Logan Wall in St. Louis) that seemed to be listed for all regions. So if you request a map of all accountants in Taranaki, you get a global map with a cluster of indistinguishable markers on New Zealand and a couple in the US. You get the same result if you look for accountants in say the Northern Territory of Australia. I assume this isn’t how the feature should work. If a potential client is interested in accountants in say Taranaki or the Northern Territory , it is probably because they are specifically interested in accountants that are in the same time-zone as themselves and where they can potentially meet face-to-face. Sure, I understand that some accountants can provide services to anyone in the world, but this isn’t what a customer is looking for when searching a specific location.

Brock Abernethy
December 12, 2011 at 5:18 pm

Anna & Kelvin, thanks for the spotting those! We’ve fixed the errant listings up and the directory is all shiny again.

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