Always a highlight of our year we’ve just completed our Annual Meeting for 2012.

Key announcements:

  • Xero now has 100,000 paying customers. Our first 50,000 took 5 years to achieve, our second 50,000 was achieved in 10 months.
  • Annualised committed monthly revenue has grown to $34.5 million. That compares with full year revenue to the end of March of just over $19m.  Subscription models are a wonderful thing.
  • We are considering a dual listing on the ASX to make it easier for Australian partners and customers to purchase shares.

You can read the full release and view the Annual Meeting presentation here: Xero Annual Meeting 2012

Australian MD Chris Ridd was in town for our board meeting today and it was great to hear first hand how Australia is going as well as updates on NZ, UK and the USA.

It’s good that our shareholders understand our growth strategy and are allowing us to continue our growth program.  We all want to get to break even as soon as we can but I think there is comfort we are responsibly growing the business and investing now to build a substantial long term company.

As one of the few public early stage SaaS companies we know our numbers are useful to others so please feel free to ask questions.

As always thank you to our shareholders for giving us the opportunity to build a great company and congratulations to all staff who have worked hard to deliver these results.




Guy Pearson
July 27, 2012 at 12:05 am


Congratulations on hitting 100k!

We’re extremely proud to be along for the ride and are looking forward to streamlining small businesses with Xero as the key component.

I hear our video got a plug from the site. I trust is was well received and look forward to the next 100k in some short months from now.

The team @ Interactive

Andrew Haynes
July 27, 2012 at 12:46 am

Great news, gotta love momentum! Dual listing is fantastic too, any idea on the time frame?

July 27, 2012 at 12:59 am

That’s a great milestone – well on your way to the first 1,000,000. I’ve been a customer since the early beta days, can’t believe that was over 5 years ago.

Adele Wardley
July 27, 2012 at 6:06 am

Well done on 100,000 customers. What an amazing achievement. Excited to hear about dual listing too!

Andrew Schofield
July 27, 2012 at 10:20 am

Well done on a great result. Plenty more growth to go – exciting times!

July 27, 2012 at 10:35 am

Congratulations on getting 100,000 customers. I hope you will update us when you get 200,000 customers.

Kelvin Hartnall
July 27, 2012 at 11:10 am

Congratulations on the 6 digit milestone! It doesn’t feel like it was that long ago that Xero announced it had surpassed 500 paying customers; probably because that was only just over 4 years ago. Reaching 1,000,000 customers in the next 5 years seems very achievable.

Steve Orenstein
July 27, 2012 at 2:20 pm

Congratulations guys on getting to 100,000 customers! Great news!

Steph Hinds
July 27, 2012 at 4:55 pm

Awesome work as always Xero. It’s great to see so many people loving the great work you are doing. Here’s to the next 100k :)

Craig Askings
July 27, 2012 at 7:02 pm

Congrats on the subscriber milestone. I hope you do go ahead with dual listing.

Michael Carter
July 28, 2012 at 11:10 am

At this rate Xero will pass QuickBooks Online in paying subs within the next year. Look forward to that milestone! Vision + Scalability + Clear channel strategy + App ecosystem + strong community … Potent mix, especially if the last factor is never taken for granted.

Interesting phase coming up as Xero begins to cross the chasm from Innovators and Early Adopters into the Early Majority, seeing as usually messaging needs to change to cross the chasm as the buying criteria are different in the middle of the bell curve. I’m fascinated to watch this as Xero evolves.

Timothy Munro
July 28, 2012 at 1:31 pm

Awesome work Xero – 100,000 users now, 1 million users pretty soon I think! I’m scared to think what we’d be doing now if Xero didn’t exist. Thank you Xero for changing the Accounting landscape – and for having a real vision for the future!

Mike Block CPA
July 29, 2012 at 12:04 am

100% in 10 months? I will be up by 155% this MONTH! I should easily do 100%+ next month. Once we pass our 10/15 extended tax due date, we will really push.

Thanks for making that possible, with much lower costs for software, hosting and a largely outsourced staff. Of course, the best features are not posting perhaps 90% of entries, being always up to date and looking forward to my first quiet tax season in 50 years.

Xero might be able to grow much faster. However, other CPAs may be doing what I am in terms of only publicizing Xero to end users (not other CPAs). It is an terrific competitive advantage.

Mike Block CPA
July 29, 2012 at 12:07 am

By the way, please always publicize numbers for paid customers and unpaid users (and why).

Rod Drury
July 29, 2012 at 8:27 am

Just for the record, we only ever publish our paying business customer number. As a public company we have to disclose revenue and analysts will always do the ARPU calculation so our number has to be accurate.

As we are one of the few public companies in this area and ‘pure play’ cloud we know our numbers our useful to see how the industry is going.

We would really like to see Intuit publish their actual active paying customer numbers and QBO specific subscription revenue which is obfuscated in their financials by grouping it with Quickbooks desktop maintenance fees (yes really) and websites etc.

FMS service and other revenue is derived primarily from
QuickBooks Online; QuickBooks support plans; Intuit Websites, which provides website design and hosting services for small and mediumsized
businesses; QuickBase; and royalties from small business online services

Cloud accounting is now a legitimate part of the industry and we think Intuit owes it to the accounting industry to disclose how they are doing as the industry makes investment decisions over the next year.

Matthew Underwood CA
September 19, 2012 at 6:27 pm

Time to update your Wikipedia profile for Board changes and recent successes!

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