SOURCE: Xero

Xero

October 08, 2014 16:34 ET

Xero Passes U.S. $100M in Annualized Committed Monthly Revenue With a 95 Percent Growth Rate in Subscription Revenue

More Than 370,000 Small Businesses Use Xero Cloud Accounting

SAN FRANCISCO, CA--(Marketwired - Oct 8, 2014) - Xero, a global leader in online accounting software, has announced that it has passed $100M in annualized committed monthly revenue and has achieved a 95 percent year-over-year growth rate in subscription revenue. 

Xero provides an intuitive, easy-to-use cloud accounting platform that gives small businesses the real-time financial insights they need to make smart business decisions anywhere, anytime. The company continues to show strong growth and build capacity with:

  • 371,000 paying customers globally vs. 211,000 this time last year, a 76 percent increase.
  • 95 percent growth in subscription revenue to $44.2m for the half year ended 30 September 2014 from $22.7m for the half year ended 30 September 2013.
  • Nearly 1,000 employees globally vs. 584 this time last year, a 70 percent increase.
             
Key metrics   6 months ended
30 September 2014
  6 months ended
30 September 2013
  % change
Subscription revenue (USDm)   44.2   22.7   95%
Operating revenue (USDm)   46.2   24.5   89%
    At 30 September 2014   At 30 September 2013    
Annualized committed monthly revenue (USDm)   102.8   58.4   76%
Staff headcount   993   584   70%
Paying customers   371,000   211,000   76%
Cash on hand (USDm)   132.7   45.8   190%

Focus on North America
Already the leading online accounting software provider in New Zealand, Australia and the United Kingdom, Xero continues to focus on the North American market with $133m in cash to fund its growth.

While the North American rate of growth surpasses many SaaS benchmarks, Xero continues its efforts towards realizing its full market potential serving the millions of small businesses in need of an online accounting solution. The company is making good progress on its US operating model and plans to announce new executive appointments over the coming months.

Regional Breakdown

Paying customers   At 30 September 2014   At 30 September 2013   % change
New Zealand   119,000   86,000   38%
Australia   158,000   79,000   100%
United Kingdom   61,000   30,000   103%
North America   22,000   10,000   120%
Rest of World   11,000   6,000   83%
Total   371,000   211,000   76%
             
Subscription revenue (USDm)   6 months ended
30 September 2014
  6 months ended
30 September 2013
  % change
New Zealand   12.9   8.6   50%
Australia   20.3   8.9   128%
United Kingdom   6.8   3.3   106%
North America   2.5   1   150%
Rest of World   1.7   0.9   89%
Total   44.2   22.7   95%

Bolsters Executive Bench
To lead Xero's global marketing strategy and further drive growth in the U.S., Xero announces the appointment of award-winning international marketer and digital innovator Andy Lark as the Xero Group's Chief Marketing Officer.

Lark has more than 25 years of industry experience leading global marketing functions and working with some of the world's best-known technology brands. He was Chief Marketing & Online Officer for a leading Australian financial institution, the Commonwealth Bank. Prior to that he spent the majority of his career in the U.S. and Europe in roles ranging from the chief marketing and communications officer of Dell Enterprise, Sun Microsystems and Nortel to founder and leadership positions in start-ups in Silicon Valley.

About Xero
Xero is beautiful, easy-to-use online accounting software for small businesses and their advisors. The company has 371,000 paying customers in more than 100 countries. Xero seamlessly integrates with over 350 third party tools, and was recently ranked No. 1 by Forbes as the World's Most Innovative Growth Company.

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