Changing the game
Xero is the emerging global leader of online accounting software that connects small businesses to their advisors and other services. Xero provides business owners with real-time visibility of their financial position and performance in a way that’s simple, smart and secure.
For accountants, Xero forges a trusted relationship with clients through online collaboration and gives accountants the opportunity to extend their services.
180+
Countries using Xero
#1
Ranked by Forbes
World’s Most Innovative Growth Companies 2014 and 2015
The problem
Underpinning the growth and profit of all small businesses is effective financial planning and accounting.
Xero is based on the principle that small businesses are highly sensitive to shifts in their balance sheet and cashflow. Their ability to monitor financial performance in real-time and plan ahead is crucial. Small businesses make up more than 90% of all businesses by number across OECD countries, so their success or otherwise has a direct effect on the greater economy.
The solution
At its core Xero is an easy-to-use but powerful online accounting system that was born in the cloud. Xero provides a growing family of connected solutions:
- client accounting for small business available anywhere, anytime, and on mobile devices
- accountant tools for management reporting and final accounts production
600+
Add-on solutions
1.38M+
Subscribers
Software as a Service
Xero’s Software as a Service business model – where software is hosted securely on the internet allows Xero to address the large and fragmented small business market. Xero releases new features monthly. Additions and extensions to functionality are developed in response to the needs of new customers and new industries.
The market
The size of the small business market is second only to that of individual consumers. Typically the consumer internet has reverted to non-direct, usually advertising-based, revenue models. In contrast, we believe the small business market provides the greatest opportunity for monetisation on the internet and Xero is proving itself to be a leading innovator in this market.
Technology
Xero software is developed using Microsoft’s .NET development environment over resilient SQL server databases, on a Windows application server infrastructure. Our production servers are primarily hosted by AWS which monitors our servers and firewalls 24/7/365 at guarded facilities.
Financial
Founded in 2006, Xero listed on the New Zealand Stock Exchange in June 2007 and the Australian Securities Exchange in November 2012. Xero is used in over 180 countries by 1,000,000+ paying subscribers and integrates with more than 500 add-on solutions.
| 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|
| Subscription revenue ($000s) | 397,692 | 289,998 | 201,986 | 121,098 | 66,853 |
| Other operating revenue ($000s) | 8,887 | 5,391 | 5,074 | 2,922 | 3,238 |
| Total operating revenue ($000s) | 406,579 | 295,389 | 207,060 | 124,020 | 70,091 |
| Net loss after tax ($000s) | (27,843) | (69,057) | (82,464) | (69,534) | (35,546) |
| Annualised monthly recurring revenue* ($000s) | 484,421 | 363,120 | 260,152 | 160,322 | 93,391 |
| Cash, cash equivalents, and term deposits ($000s) | 79,955 | 113,699 | 184,024 | 268,866 | 209,886 |
| Operating and investing cash flow ($000s) | (36,945) | (70,831) | (88,590) | (88,381) | (48,399) |
| Subscribers | 1,386,000 | 1,035,000 | 717,000 | 475,000 | 284,000 |
*With Xero’s evolution towards a global small business platform, the recurring revenue metric has been expanded to include other recurring platform revenues including transactional services, and ancillary partner and small business products. The previous years have been restated for consistency.
Xero has raised more than NZ$470 million in funding. This includes $2m pre-IPO; $15m at its IPO; and subsequent placements involving MYOB co-founder Craig Winkler, Paypal founder and first Facebook external investor Peter Thiel (through the investment vehicle Valar Ventures), Matrix Capital Management, and Accel Partners.
Key people
The Xero country leaders, executives and board can be viewed here.
Locations
New Zealand | Wellington, Auckland, Christchurch, Napier
United States | Denver, San Francisco, New York, Los Angeles, Seattle
Australia | Melbourne, Sydney, Canberra, Brisbane, Perth
United Kingdom | Milton Keynes, London
Singapore | Singapore
Additional resources
Xero blog
Check out our latest Xero blog posts for tips and insights, hot topic articles, and interviews with business leaders and experts.
Who's using Xero?
Read case studies of small businesses and accountants currently using Xero.
Reviewers guide
Download the Xero Reviewer's Guide to get a comprehensive overview of Xero and our small business accounting solution.
Investor reports and presentations
Visit our Investor section for more information on our investor reports and presentations
For further corporate company information or media enquiries please contact Corporate Communications at press@xero.com
For general enquiries please contact support@xero.com