Software:Xero

From HandWiki
Xero Limited
TypePublic
ASX: XRO
IndustrySoftware as a Service (SaaS)
FoundedNew Zealand (2006)
Headquarters
Wellington
,
New Zealand
Key people
  • David Thodey
  • (Chairman of the Board)
  • Rod Drury
  • (Founder & Director)
  • Steve Vamos
  • (CEO)
ProductsAccounting software
Revenue
  • Increase NZ $718.2 million
  • (FY MAR. 31, 2020)
Number of employees
  • Increase 3000+
  • (FY MAR. 31, 2020)
WebsiteXero.com
Footnotes / references
[1][2][3][4][5]

[6] [7]

[8]

Xero is a New Zealand domiciled public technology company, listed on the Australian Stock Exchange.[9] Xero offers a cloud-based accounting software platform for small and medium-sized businesses. The company has three offices in New Zealand (Wellington, Auckland and Napier), six offices in Australia (Melbourne, Sydney, Canberra, Adelaide, Brisbane and Perth), three offices in the United Kingdom (London, Manchester and Milton Keynes),[10] three offices in the United States (Denver, San Francisco and New York City ), as well as offices in Canada , Singapore, Hong Kong and South Africa .[11]

Xero's products are based on the software as a service (SaaS) model and sold by subscription, based on the type and number of company entities managed by the subscriber.[12] Its products are used in over 180 different countries.[13][14]

History

Xero was founded in a Wellington studio apartment in 2006 by Rod Drury and his personal accountant Hamish Edwards when they felt that traditional desktop accounting software had become outdated and decided to create a modern cloud-based product.[15][16][17] Xero Limited's global headquarters are still located in Wellington.[18]

Originally called Accounting 2.0, the name was unpopular with the company's staff and the decimal point made registering an internet domain name impossible. Changing the name to Xero provided a challenge with the domain name, as the existing xero.com domain was a Linkin Park fan site (Xero was Linkin Park's original name). Rod decided to fly the existing domain administrator to New Zealand from the United States, wined and dined him, and ultimately convinced him to sell the domain for $20,000.[17]

The company entered the Australia and the United Kingdom in 2008,[19][better source needed] and United States in 2011.[20]

In 2017, Xero surpassed one million customers globally,[21] and the following year, in December 2018, Xero hit a million subscribers in its home markets of Australia and New Zealand.[22]

Rod Drury stepped down as CEO on 31 March 2018, with Steve Vamos replacing the role in April 2018. Rod remains on the board as a non-executive director.[23]

In 2019, Xero announced it had hit 2 million subscribers[24] and in 2020 the business made its first full year profit.[25]

Funding

Xero went public on the New Zealand Exchange on June 5, 2007, with a $15 million (NZD) IPO, gaining 15% on its first trading day.[26] Drury decided to list on the NZX, rather than receive investment from Silicon Valley in order to avoid being pressured into selling to a larger competing company.[10] The company focused on the New Zealand market and product and development for its first five years before entering other markets. It went public on the Australian Securities Exchange (ASX) on November 8, 2012.[3][27] Xero transitioned to a sole listing on the ASX on February 5, 2018, delisting from the NZX on February 2, 2018. January 31, 2018 was the last day Xero shares were traded on the NZX.

Xero has also received funding from various investors. In 2009, it closed a $23 million (NZD) round of funding led by MYOB founder, Craig Winkler.[28] It raised an additional $4 million (NZD) in 2010 from Peter Thiel's Valar Ventures who also invested an additional $16.6 million (USD) in February 2012.[29] It raised $49 million in a funding round in November 2012 with the largest amounts coming from Peter Thiel and Matrix Capital. It was reported by PandoDaily that the company had raised more than $100 million and had a valuation of approximately $1.4 billion on the NZE as of May 2013.[10][30] This was prior to when the company received an additional $180 million (NZD) from Thiel and Matrix in October 2013, bringing total funding to more than $230 million.[31] Xero raised an additional $100 million from Accel and $10.8 million from Matrix Capital on February 25, 2015.[32] On October 5, 2018, Xero announced a settlement of $300 million (USD) in convertible notes. The capital raise was groundbreaking for a New Zealand or Australian company not listed in the United States, and the company was awarded best hybrid deal of 2018 by Finance Asia.[33]

Acquisitions and strategic partnerships

Xero has acquired several companies since its launch. In July 2011, the company acquired the Australian online payroll provider Paycycle for a mixture of cash and shares totaling $1.9 million (NZD). The acquisition allowed Xero to integrate payroll into their Australian product offering.[34] It acquired Spotlight Workpapers in July 2012 for a mixture of cash and shares totaling $800,000.[35]

The same year it acquired online job, time, and invoice management solution WorkflowMax for cash and shares totalling spot $6 million (NZD).[36]

In July 2018, Xero announced a strategic alliance with US payroll platform Gusto.[37]

In August 2018, Xero acquired Hubdoc, a data capture solution.[38] Xero paid the acquisition price for Hubdoc in two stages, initially US$60 million consisting of 35% cash and 65% in Xero equity. A second tranche of US$10 million in equity was promised to the Hubdoc's shareholders in 18 months following the acquisition, subject to operational targets and conditions.

In November 2018, Xero acquired cloud-based accounts preparation and tax filing solution Instafile for £5.25 million (GBP), which will be paid over three years.[39]

Product

Xero accounting software uses a single unified ledger, which allows users to work in the same set of books regardless of location or operating system.[40]

Its key features include automatic bank feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, bank reconciliations, and standard business and management reporting. Xero has more than 200 secure connections with banks and financial service partners around the world. A free API also enables customers and 3rd-party software vendors to integrate external applications with Xero. Xero has integrations with 800+ third party apps, and 200+ connections to financial service providers around the world. .[41][42][43]

In 2011, Xero released the Xero Touch mobile apps for iOS and Android devices,[44] allowing users to issue invoices while on-site with clients.[45]

Xero also supports multiple tax rates and currencies.[46] It also incorporates payroll, projects and expenses features. On August 16, 2016, Xero announced its partnership with PayPal, and in June 2019, Xero announced it was partnering with global payments processor, Stripe. These partnerships allow invoices to be paid directly from the invoice.

In the 2019 financial year, Xero embraced Making Tax Digital in the United Kingdom,[47] Single Touch Payroll in Australia[48] and Payday Filing in New Zealand,[49]  allowing subscribers to manage their compliance obligations through the Xero platform.

Awards and recognition

In 2007 Xero received the Overall Partner Solution of the Year for Small Business and also featured as part of a Microsoft case study.[50] The company was the recipient of two Webby Awards in 2009, including the People's Choice Award for Banking/Bill Pay.[51] It was recognized again with a Webby in 2010 for Web Services & Applications. It received a Fast Company Innovation by Design Award in 2012.[52] and was recognized as one of the 10 Smart Financial Apps to Solve Small Business Accounting Challenges by YFS Magazine in 2013.[53][54] Additional awards in 2013 included the Awesome Application Award from the Sleeter Group and the New Zealand Company of the Year from Hi-Tech.[55] In June 2014, Xero topped the Forbes magazine "100 most innovative growth companies" list.[56] Also in 2014, the company was named one of Macworld's recommended online business accounting apps.[57] In January 2015, Xero was crowned best accounting software in the Cloudswave Awards with a score of 83,[58] and New Zealand Company of the Year from Hi-Tech for the second time.[59] Xero won Product of the Year at the British Accountancy Awards 2017[60] and also won Best Overall Fintech platform by the Fintech Breakthrough Awards in 2017.[61] The company was rated by Canstar Blue as Australia's best accounting software four consecutive years from 2015-2018 and in New Zealand in 2019.[62][63] In 2018 Xero also won ‘Bookkeeping software of the Year’ from the Institute of Certified Bookkeepers UK and Small Business Accounting Software of the Year' – Practitioners’ Choice’ from members of AccountingWeb (UK).

The IDC MarketScape recognised Xero as a Leader in the Worldwide SaaS and Cloud-Enabled Small Business Finance and Accounting Applications 2020 Vendor Assessment.[64] On the 2020 Financial Times High-Growth Companies Asia Pacific[65] list, Xero was the largest company by revenue to come from New Zealand or Australia. Xero has also been included in the 2020 Bloomberg Gender-Equality Index.[66]

See also

References

  1. ↑ "Xero Limited Annual Report (Fiscal Year: March 31, 2018)". Xero Limited. https://www.xero.com/content/dam/xero/pdf/About%20Us/xero-annual-report-2018.pdf. Retrieved November 27, 2018. 
  2. ↑ Laugesen, Ruth (17 October 2013). "From Xero a hero". New Zealand Listener (subscription required). http://www.listener.co.nz/current-affairs/business/from-xero-a-hero/. Retrieved 15 January 2014. 
  3. ↑ 3.0 3.1 Barwick, Harrish (8 November 2012). "NZ-based SaaS provider Xero lists on ASX". Computer World. http://www.computerworld.com.au/article/441327/nz-based_saas_provider_xero_lists_asx/. Retrieved 15 January 2014. 
  4. ↑ "Xero Limited 2018 Annual Report". https://www.xero.com/media/9883890/xro_2018_annual_report.pdf. Retrieved 24 May 2016. 
  5. ↑ "Xero Limited 2018 Interim Report". https://www.xero.com/content/dam/xero/pdf/About%20Us/xro_interim_report_h1_fy2018.pdf. Retrieved 17 March 2018. 
  6. ↑ "ASX". https://www.asx.com.au/asxpdf/20191213/pdf/44ck6vmrkb8n1p.pdf. 
  7. ↑ "Xero Delivers 30% Revenue Growth &Free Cash Flow Progress". https://www.asx.com.au/asxpdf/20200514/pdf/44ht9tmvcc3pys.pdf. Retrieved 17 March 2020. 
  8. ↑ "Xero Limited 2020 Annual Report". https://www.asx.com.au/asxpdf/20200514/pdf/44ht9rm9n2mvs9.pdf. Retrieved 17 March 2020. 
  9. ↑ "Australian Securities Exchange" (in en), Wikipedia, 2019-06-16, https://en.wikipedia.org/w/index.php?title=Australian_Securities_Exchange&oldid=902153038, retrieved 2019-06-26 
  10. ↑ 10.0 10.1 10.2 McKenzie, Hamish (1 May 2013). "Xero: A billion-dollar software company that had five years in stealth at the bottom of the planet". Pando Daily. http://pando.com/2013/05/01/xero-a-billion-dollar-software-company-that-had-five-years-in-stealth-at-the-bottom-of-the-planet/. Retrieved 15 January 2014. 
  11. ↑ Campbell, Anita (13 October 2013). "Small Biz Accounting Software Space Heats Up As Xero Raises $150 Million". Small Biz Trends. http://smallbiztrends.com/2013/10/xero-small-business-accounting-software-funding.html. Retrieved 15 January 2014. 
  12. ↑ Robins, Brian (6 November 2013). "Sharemarket darling Xero dubbed 'Apple of accounting'". The Sydney Morning Herald. http://www.smh.com.au/business/sharemarket-darling-xero-dubbed-apple-of-accounting-20131106-2x0m7.html. Retrieved 15 January 2014. 
  13. ↑ "Xero grows to $1 Billion revenue - Enterprise Times" (in en-GB). Enterprise Times. 2016-07-20. https://www.enterprisetimes.co.uk/2016/07/20/xero-grows-to-1-billion-revenue/. 
  14. ↑ holly.ryan@nzherald.co.nz @HollyRoseRyan, Holly Ryan Business writer, NZ Herald (2018-05-09). "Xero halves losses, closes in on profitability" (in en-NZ). ISSN 1170-0777. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12048814. 
  15. ↑ "No guts, no glory for Xero boss" (in en). https://www.stuff.co.nz/business/industries/10519659/No-guts-no-glory-for-Xero-boss. 
  16. ↑ Gregersen, Hal. "How Rod Drury Built Xero From A 'Small Set Of Rocks In The South Pacific' Into A Global Player" (in en). https://www.forbes.com/sites/halgregersen/2014/05/28/how-rod-drury-built-xero-from-a-small-set-of-rocks-in-the-south-pacific-into-a-global-player/. 
  17. ↑ 17.0 17.1 "THE UNTOLD STORY: How Xero took a band name and changed accounting for a million companies". https://www.businessinsider.com/the-untold-story-how-xero-took-a-band-name-and-changed-accounting-for-a-million-companies-2017-9. 
  18. ↑ Brooks, Steve (2016-07-20). "Xero grows to $1 Billion revenue -" (in en-GB). https://www.enterprisetimes.co.uk/2016/07/20/xero-grows-to-1-billion-revenue/. 
  19. ↑ "Xero Chairman's Address for 2009 Annual Meeting". XERO. 23 July 2009. https://www.xero.com/media/37066/230709-xero-chairman-phil-normans-presentation-agm-2009.pdf. Retrieved 24 May 2016. 
  20. ↑ "Chairman's Address for 2011 Annual Meeting". XERO. 21 July 2011. https://www.xero.com/media/37039/210711-chairmans-address-xero-am.pdf. Retrieved 24 May 2016. 
  21. ↑ aimee.shaw@nzherald.co.nz @AceeyShaw, Aimee Shaw Aimee Shaw is a business reporter focusing on retail, small business (2017-03-29). "Accounting software firm Xero surpasses one million users worldwide" (in en-NZ). ISSN 1170-0777. https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11828403. 
  22. ↑ "Xero hits million mark for trans-Tasman subscribers". https://www.reseller.co.nz/article/650373/xero-hits-million-mark-trans-tasman-subscribers/. 
  23. ↑ holly.ryan@nzherald.co.nz @HollyRoseRyan, Holly Ryan Business writer, NZ Herald (2018-03-04). "Xero CEO Rod Drury stepping down" (in en-NZ). ISSN 1170-0777. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12006578. 
  24. ↑ "Xero Delivers 32% Operating Revenue Growth & Passes 2 Million Subscribers". 7 November 2019. https://www.asx.com.au/asxpdf/20191107/pdf/44bbsg1755j329.pdf. 
  25. ↑ "Xero Delivers 30% Revenue Growth & Free Cash Flow Progress". 14 May 2020. https://www.asx.com.au/asxpdf/20200514/pdf/44ht9tmvcc3pys.pdf. 
  26. ↑ Niesche, Christopher (6 June 2007). "Xero begins strongly". New Zealand Herald. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10443821. Retrieved 15 January 2014. 
  27. ↑ Geron, Tomio. "Peter Thiel's Valar Ventures Joins $67 Million Round For Xero" (in en). https://www.forbes.com/sites/tomiogeron/2012/11/30/peter-thiels-valar-ventures-joins-67-million-round-for-xero/. 
  28. ↑ Sharp, Ari (2009-04-07). "MYOB founder buys into rival" (in en). https://www.smh.com.au/business/myob-founder-buys-into-rival-20141112-9zeu.html. 
  29. ↑ Wauters, Robin (22 October 2010). "Peter Thiel Invests $3 Million In Xero To Support Its US Expansion". Tech Crunch. https://techcrunch.com/2010/10/22/peter-thiel-xero/. Retrieved 15 January 2014. 
  30. ↑ Williams, Alex (29 November 2012). "Peter Thiel And Existing Investors Put Another $49 Million In Accounting Software Company Xero". Tech Crunch. https://techcrunch.com/2012/11/29/peter-thiel-and-existing-investors-put-another-49-million-in-accounting-software-company-xero/. Retrieved 15 January 2014. 
  31. ↑ Lunden, Ingrid (13 October 2013). "Xero Zeros In On Another $150M To Do Battle With Intuit In The World Of Online SMB Accounting Software". Tech Crunch. https://techcrunch.com/2013/10/13/xero-zeros-in-on-another-150m-to-do-battle-with-intuit-in-the-world-of-online-smb-accounting-software/. Retrieved 15 January 2014. 
  32. ↑ "Xero secures US$141M from Accel Partners, Matrix Capital Management" (in en). https://e27.co/xero-secures-us141m-accel-partners-matrix-capital-management-20150225/. 
  33. ↑ Editors, FinanceAsia. "Achievement Awards 2018 – Australia/NZ Part 1 | australia awards, achievement awards, awards, australia, new zealand". https://www.financeasia.com/article/achievement-awards-2018-australia-nz-part-1/448805. 
  34. ↑ Rogers, Claire. "Xero buys payroll firm to boost Aust growth". Stuff.co.nz. http://www.stuff.co.nz/business/5323260/Xero-buys-payroll-provider-to-boost-Australian-growth. Retrieved 19 September 2013. 
  35. ↑ "Xero acquires Spotlight Workpapers - NZX, New Zealand's Exchange". https://www.nzx.com/announcements/225144. 
  36. ↑ "Xero acquires leading practice management company - NZX, New Zealand's Exchange". https://www.nzx.com/announcements/219108. 
  37. ↑ jamie.gray@nzherald.co.nz @JamieGrayNZ, Jamie Gray Business reporter, NZ Herald (2018-07-19). "Xero forms alliance with US payrolls platform Gusto" (in en-NZ). ISSN 1170-0777. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12092345. 
  38. ↑ "Xero acquires Hubdoc" (in en). 2018-08-01. https://www.finextra.com/pressarticle/74943/xero-acquires-hubdoc. 
  39. ↑ Brooks, Steve (2018-11-16). "Xero acquires Instafile for £5.25 million -" (in en-GB). https://www.enterprisetimes.co.uk/2018/11/16/xero-acquires-instafile-for-5-25-million/. 
  40. ↑ Lam, Greg (2 July 2013). "Cloud Accounting Comparison – Data Import and Export". Sleeter. http://www.sleeter.com/blog/2013/07/cloud-accounting-data-import-and-export/. Retrieved 16 January 2014. 
  41. ↑ Lam, Greg. "Xero Review". The Small Biz Doer. http://www.smallbusinessdoer.com/xero-review/. Retrieved 19 September 2013. 
  42. ↑ LaBarre, Suzanne (25 February 2012). "Xero Reinvents Accounting For Small Businesses, With Superb UI Design". Fast Code Design. http://www.fastcodesign.com/1669123/xero-reinvents-accounting-for-small-businesses-with-superb-ui-design. Retrieved 15 January 2014. 
  43. ↑ "Xero Limited 2020 Annual Report". https://www.asx.com.au/asxpdf/20200514/pdf/44ht9rm9n2mvs9.pdf. 
  44. ↑ Fineberg, Seth. "Xero Debuts Mobile App for Android". Accounting Today. http://www.accountingtoday.com/accounting-technology/news/Xero-Debuts-Mobile-App-for-Android64178-1.html. Retrieved 9 September 2013. 
  45. ↑ Smith, Heather (23 May 2013). Xero For Dummies. John Wiley & Sons. p. 35. ISBN 978-1-118-57252-8. https://books.google.com/books?id=drOF19aBKfgC&pg=PT25. 
  46. ↑ "Multi-currency accounting in Xero" (in en). https://www.xero.com/nz/features-and-tools/accounting-software/multi-currency/. 
  47. ↑ "Xero is preparing for Making Tax Digital" (in en-GB). 2018-11-15. https://www.accountancyage.com/2018/11/15/xero-is-preparing-for-making-tax-digital/. 
  48. ↑ Zaharov-Reutt, Alex (28 November 2018). "Xero says 'small businesses rushing to go digital as STP deadline approaches'". https://www.itwire.com/accounting-software/85433-xero-says-small-businesses-rushing-to-go-digital-as-stp-deadline-approaches.html. 
  49. ↑ "Tax refund agents weigh futures as IRD prepares huge software release". https://www.reseller.co.nz/article/656537/tax-refund-agents-weigh-futures-ird-prepares-huge-software-release/. 
  50. ↑ "Software Developer Improves Service Levels With Superior Database Technology, Flexible Licenses". Microsoft Corporation. 10 September 2007. Retrieved 16 January 2014."
  51. ↑ Friday; October 2010, 22; BusinessDesk, 11:02 am Article. "PayPal founder pumps $4mln into Xero | Scoop News". http://www.scoop.co.nz/stories/BU1010/S00694/paypal-founder-pumps-4mln-into-xero.htm. 
  52. ↑ "Xero -- The Webby Awards" (in en-US). https://www.webbyawards.com/winners/2010/web/general-website-categories/web-services-applications/xero/?/. 
  53. ↑ "10 Smart Financial Apps to Solve Small Business Accounting Challenges" (in en-US). 2013-01-04. https://yfsmagazine.com/2013/01/04/10-smart-financial-apps-to-solve-small-business-accounting-challenges/. 
  54. ↑ "Is xero online accounting suitable for small business | Digital Grog | Technology Blog Australia". https://www.digitalgrog.com.au/accounting/is-xero-online-accounting-suitable-for-small-business/. 
  55. ↑ "Xero and Vend big winners at NZ Hi-Tech Awards 2013" (in en). 2013-05-18. https://www.nbr.co.nz/article/xero-and-vend-big-winners-nz-hi-tech-awards-2013-ck-140337. 
  56. ↑ "Most Innovative Growth Companies" (in en). https://www.forbes.com/growth-companies/list/. 
  57. ↑ "Top Choice: Our favorite online-based business accounting apps" (in en). 2014-03-10. https://www.macworld.com/article/2104703/top-choice-our-favorite-online-based-business-accounting-apps.html. 
  58. ↑ Skellern, Graham (2017-11-23). "Deloitte Top 200: Visionary Leader - Rod Drury, Xero" (in en-NZ). ISSN 1170-0777. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11946880. 
  59. ↑ "Hi-Tech Awards 2015 winners named" (in en). 2015-05-16. https://www.nbr.co.nz/article/hi-tech-awards-2015-winners-named-172831. 
  60. ↑ "2017 Winners" (in en-US). https://www.britishaccountancyawards.co.uk/2017-winners/. 
  61. ↑ "2017 Winners | FinTech Breakthrough Awards" (in en-US). https://fintechbreakthrough.com/2017-winners/. 
  62. ↑ "Accounting Software | 2018 Reviews & Ratings" (in en-US). https://www.canstarblue.com.au/stores-services/accounting-software/. 
  63. ↑ "Kiwi businesses give Xero the thumbs up" (in en-US). 2019-06-19. https://www.xero.com/blog/2019/06/canstar-blue-award-nz/. 
  64. ↑ Williams, Shannon. "Xero named as a worldwide leader by IDC MarketScape" (in en). https://itbrief.co.nz/story/xero-named-as-a-worldwide-leader-by-idc-marketscape. 
  65. ↑ Kelly, Maxine (2020-04-21). "FT ranking: Asia-Pacific High-Growth Companies" (in en-GB). https://www.ft.com/content/fc4c8f98-7352-11ea-95fe-fcd274e920ca. 
  66. ↑ "Bloomberg - Are you a robot?". https://www.bloomberg.com/tosv2.html?vid=&uuid=9348b480-aacb-11ea-a498-175af3108178&url=L2NvbXBhbnkvcHJlc3MvYmxvb21iZXJncy0yMDIwLWdlbmRlci1lcXVhbGl0eS1pbmRleC1leHBhbmRzLXRvLWluY2x1ZGUtMzI1LXB1YmxpYy1jb21wYW5pZXMtZ2xvYmFsbHkv. 




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