2015

A beautiful year


Rod Drury

CEO

We started Xero to change the game for small business, and this is our eighth straight year of executing our strategy and delivering results. We believe we’ve created the first global cloud accounting solution that people love. We’re proud to be making a difference in the lives of over 500,000 subscribers. And in many ways we’re just getting started.

2014–15 saw Xero substantially build its team while delivering strong growth and growing well past the NZ$100m revenue milestone. Xero now leads the NZ, Australia, and UK cloud accounting markets and is making pleasing progress in the US. Our development cadence is phenomenal with over 500 product updates delivered to small businesses, accountants and bookkeepers this year. We’ve been developing our ecosystem, strategic alliances, and partnerships. Global accounting firms are selecting Xero as their partner of choice.

Forbes ranked Xero Number 1 on its list of the World’s Most Innovative Growth Companies for both 2014 and 2015. In October 2014 BRW named Xero the most innovative company in Australia. We’ve invested in top talent to build a world-class global team that will support our business to grow at scale. We’re fired up to achieve our vision of helping millions more people around the world thrive on Xero.

It’s been an amazing year and there’s lots to show. Please enjoy some of the beautiful Xero moments we’re most proud of.


81%

Growth in subscription revenue – $120.9m

77%

Growth in operating revenue – $123.9m

  • $8.2m
  • $18.0m
  • $36.1m
  • $66.9m
  • $120.9m Subscription
    revenue

Thriving performance

We’re one of the fastest growing Software as a Service companies globally. In FY2015, we grew our customer base to more than 475,000 subscribers worldwide.

Xero’s global potential continues to attract new capital from top-tier investors.

$147m
New capital
raised
$269m
Cash to invest as
at 31 March 2015
Xero performance graph
500,000+
Subscribers - Today
475,000
31 March 2015 Subscribers
284,000
March 2014 Subscribers
157,000
March 2013 Subscribers

Innovation at pace

In the last year our innovation engine delivered over 500 product updates and enhancements to Xero, with best-in-class availability of 99.97 percent uptime. Small businesses improved productivity and their cashflow with features including payroll, online quotes, invoices, and inventory. Accountants and bookkeepers increased efficiency through new compliance tools like practice reports and workpapers. Xero is loved by our small business customers and partners, and is now the most comprehensive small business accounting platform purpose-built for the cloud.

Best in class availability with 99.97% uptime

500+ updates

We design features and experiences by listening to the people who use Xero every day. We love small business and we have much, much more coming in our innovation roadmap.

Xero iPad app
Xero iPhone app

Our vision

Small businesses make the world go around. Xero enables small business to thrive through beautiful software, advice and connections. Having the right tools and knowledge spreads efficiency and growth everywhere: healthy businesses hire more people, more jobs means a better economy, a better economy leads to better roads, schools and hospitals, and even more people starting businesses.

“Millions of small businesses thriving on Xero.”

That’s what we want to be part of. From easier invoicing to a thriving worldwide network of connected businesses and prosperity.

And we’re doing it.


A year of beautiful moments


Beautiful business together

Partnerships are everything to Xero. We’ve built relationships with over 16,000 accounting and bookkeeping firms. We’ve created an ecosystem with hundreds of Xero add-on application partners worldwide.

Over 2014 and 2015 we announced strategic partnerships with KPMG UK, KPMG NZ, and BDO in South Africa. KPMG Singapore also became a platinum partner, showing the Asia-Pacific region’s strong growth potential.

Sian Kelly
Inform Accounting
West Midlands, UK

Focusing on product

Xero’s product development is driven by the small business owners and financial advisors who do beautiful business every day. We really do leap out of bed thinking about better ways to help Xero customers, wherever and whenever they need it.

Bailey Brooks

Partner Product Marketing Manager

Luke Gumbley

Product Manager – Mobile

Xeros on a mission

1,161
Passionate staff
20
Offices worldwide
1
Global team

Xero in anywhere, anytime

Xero is a true global player, helping businesses process 55 million invoices around the world in 2014–15. The sun never sets on beautiful accounting software.

Xero map
  • More than 10,000,000 sessions
  • More than 100,000 sessions
  • Up to 100,000 sessions
8.7m
Visits to xero.com
180+
Countries
46m
Xero sessions globally
$310B
In transactions processed (NZD)

Global leadership team

Our team of global leaders and world-class experts are key to Xero’s innovation, scale, and sustainable growth.

Rod DruryCEO and Executive Director

Rod Drury is the CEO of Xero and serves on its Board of Directors. As the visionary behind Xero, Rod has been acknowledged by his international peers through many technology and business awards.

Duncan RitchieChief Platform Officer

With 15 years of experience in IT management positions, Duncan is responsible for all aspects of Xero’s production operations, architecture, security, internal systems, business intelligence, and customer support.

Angus NortonChief Product Officer

Angus is responsible for the engineering and product management of Xero's core accounting product portfolio. This includes the strategy and development for Xero's current products and roadmap.

Ross JenkinsChief Operating Officer and Acting Chief Financial Officer

Ross brings over 30 years of financial and general business management experience to Xero. Ross is responsible for Xero's financial and administrative functions, and operations.

Andy LarkChief Marketing Officer

Andy Lark is responsible for Xero’s global marketing strategy, and has 25 years of executive experience in Fortune and Times 100 companies and global technology brands.


Financials

Xero delivered strong revenue and customer growth across all markets during the 2015 financial year. Subscription revenue increased 81 percent to NZ$120.9 million, with constant currency subscription revenue of NZ$122.5 million, up 83 percent. The full year loss of NZ$69.5 million reflects increased upfront investment, typical of global Software as a Service companies following a high-growth strategy.

Xero begins the 2016 financial year strongly with NZ$159.3 million in annualised committed monthly revenue and NZ$269 million in cash and short term deposits.

Amounts below (other than subscribers) are presented in NZD thousands (NZ$000) for the year ended 31 March 2015. Download the Annual Report below for our full financial statements.

2015 2014 2013
Subscription revenue 120,928 (2015) 66,853 (2014) 36,088 (2013)
Other operating revenue 2,922 (2015) 3,238 (2014) 2,265 (2013)
Total operating revenue 123,850 (2015) 70,091 (2014) 38,353 (2013)
Net loss after tax (69,534) (2015) (34,546) (2014) (14,443) (2013)
Annualised committed monthly revenue 159,338 (2015) 93,000 (2014) 51,500 (2013)
Cash, cash equivalents, and term deposits 268,866 (2015) 209,886 (2014) 78,244 (2013)
Operating and investing cash flow (88,381) (2015) (48,399) (2014) (20,802) (2013)
Subscribers 475,000 (2015) 284,000 (2014) 157,000 (2013)

Thank you

Our success in FY2015 came from our global Xero team, an abundance of small businesses, bookkeepers, accountants, partners across the globe, and our investors. Thank you for being on this beautiful journey with us.

Bring on 2016.

Download Annual Report