News & media

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 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

1,200+


Updates delivered in FY16

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 cash flow. 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 designed from the ground up. 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

500+


Add-on solutions

99.97%


Uptime

Best in class availability

862k+


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 monetization 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 Rackspace, a tier-one NASDAQ listed hosting provider, which monitors our servers and firewalls 24/7/365 at guarded facilities. Xero utilizes the global Akamai Content Delivery Network for faster performance to customers around the world.

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 700,000+ paying subscribers and integrates with more than 400 add-on solutions.

2016
2015
2014
Subscription revenue 201,986 121,098 66,853
Other operating revenue 5,074 2,922 3,238
Total operating revenue 207,060 124,020 70,091
Net loss after tax (82,464) (69,534) (34,546)
Annualised committed monthly revenue 257,925 159,338 93,000
Cash, cash equivalents, and term deposits 184,024 268,866 209,886
Operating and investing cash flow (86,083) (88,381) (48,399)
Subscribers 717,000 475,000 284,000

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, executive and board can be viewed at Team

Locations

United States | San Francisco, New York, Denver, Los Angeles, Seattle

Australia | Melbourne, Sydney, Canberra, Brisbane, Perth

United Kingdom | Milton Keynes, London

New Zealand | Wellington, Auckland, Christchurch

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