Company:Xero

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Short description: Accounting software company


Xero Limited
TypePublic
  • ASX: XRO
  • S&P/ASX 200 component
ISIN[https://handwiki.org/wiki/index.php?title=Toollabs:isin/&language=en&isin=NZXROE0001S2 NZXROE0001S2]
IndustrySoftware as a service
Founded2006; 18 years ago (2006) in Wellington, New Zealand
Founders
  • Rod Drury
  • Hamish Edwards
Headquarters
Wellington, New Zealand
Key people
  • David Thodey
  • (chair of the board)
  • Sukhinder Singh Cassidy
  • (CEO)
ProductsAccounting software
RevenueIncrease Template:NZD (2023)
Increase NZ$57.29 million (2023)
Decrease NZ$−113.5 million (2023)
Total assetsIncrease NZ$2.65 billion (2024)
Total equityIncrease NZ$1.185 billion (2024)
Number of employees
4,242 (2024)
WebsiteXero.com
Footnotes / references
[1][2][3][4][5][6]

Xero is a New Zealand–based technology company that provides cloud-based accounting software for small businesses. The company has offices in New Zealand, Australia , the United Kingdom and the United States.[7][8] Xero's products are based on the software-as-a-service model and sold by subscription, based on the type and number of entities managed by the subscriber.[9] The products are used in over 180 countries.[10][11]

History

In 2006, Xero was founded by Rod Drury and Hamish Edwards in Wellington,[12][13][14] where Xero Limited's headquarters are still located.[15] The company was originally called Accounting 2.0.[14]

By 2017, Xero had more than one million customers globally,[16] and the following year, it had more than one million subscribers in Australia and New Zealand.[17] In April 2018, Steve Vamos was appointed as CEO, replacing Rod Drury who remained on the board as a non-executive director until 2023.[18] Vamos announced in November 2022 that he would step down in February 2023 and be replaced by Sukhinder Singh Cassidy, a former executive of Google and StubHub.[19][20]

In 2019, the company announced it had over two million global subscribers,[21] and three million subscribers in September 2021.[22]

In March 2023, Sukhinder Singh Cassidy, the CEO of Xero, announced the removal of 700-800 roles across Xero, representing approximately 15% of the employee base.[23]

Product

The 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.[24] It provides automatic bank feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, bank reconciliations, and standard business and management reporting.[25]

In 2011 and 2012, the Xero Touch mobile apps for iOS and Android devices were released.[26]

In the 2019 financial year, Xero offered services relating to Making Tax Digital in the United Kingdom,[27] Single Touch Payroll in Australia,[28] and Payday Filing in New Zealand.[29]

Funding

Xero went public on the New Zealand Exchange on 5 June 2007, with a Template:NZD IPO, gaining 15% on its first trading day.[30] It went public on the Australian Securities Exchange (ASX) on 8 November 2012.[2][31]

Xero transitioned to a sole listing on the ASX on 5 February 2018, delisting from the NZX on 2 February 2018.[32] In September 2019, the market capitalisation of Xero on the ASX exceeded Template:NZD, and it was ranked as the third most valuable publicly listed New Zealand company.[33]

Xero has also received funding from various investors. In 2009, it received Template:NZD of funding led by MYOB founder, Craig Winkler.[34] It raised an additional Template:NZD in 2010 from Peter Thiel's Valar Ventures who also invested an additional US$16.6 million in February 2012.[35] It raised $49 million in a funding round in November 2012 with the largest amounts coming from Peter Thiel and Matrix Capital.[36] The company raised more than $100 million at a valuation of approximately $1.4 billion on the NZE by May 2013.[37][38] This valuation was before receiving an additional Template:NZD from Thiel and Matrix in October 2013, bringing total funding to more than $230 million.[39] Xero raised an additional $100 million from Accel and $10.8 million from Matrix Capital on 25 February 2015.[40] On 5 October 2018, Xero announced a settlement of US$300 million in convertible notes, more than previously raised by a New Zealand or Australian company not listed in the United States.[41]

Acquisitions and partnerships

In July 2011, Xero acquired the Australian online payroll provider Paycycle for a mixture of cash and shares totaling Template:NZD, to integrate the company's products into its services.[42] It acquired Spotlight Workpapers in July 2012 for a mixture of cash and shares totaling $800,000.[43]

In July 2018, Xero formed a partnership with US payroll platform Gusto.[44] In August 2018, it acquired Hubdoc, a data capture application.[45] In November 2018, it acquired cloud-based accounts preparation and tax filing application Instafile for GB£5.25 million.[46]

In August 2020, Xero acquired Waddle, an Australian-based invoice financing startup, for A$80 million. The payment included $31 million in cash and $49 million in earnout payments. Waddle allows small businesses to access loans secured by their accounts receivables.[47][48] In March 2023 Xero announces it was cutting jobs and closing the Waddle app [49]

In November 2021, it acquired inventory management provider Locate Inventory for US$19 million,[50] and in December 2021, Xero announced it was acquiring Canadian tax software provider, TaxCycle, for CA$75 million.[51]

In November 2022, Xero announced establishment of a technology base in India in partnership with technology outsourcing company Infosys.[52] The India technology base includes engineering and developer roles.[52]

See also

References

  1. ↑ Laugesen, Ruth (17 October 2013). "From Xero a hero". New Zealand Listener. https://www.noted.co.nz/money/money-business/from-xero-a-hero. 
  2. ↑ 2.0 2.1 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/. 
  3. ↑ "Xero Limited 2018 Annual Report". https://www.xero.com/media/9883890/xro_2018_annual_report.pdf. 
  4. ↑ "Xero Limited 2018 Interim Report". https://www.xero.com/content/dam/xero/pdf/About%20Us/xro_interim_report_h1_fy2018.pdf. 
  5. ↑ "ASX". https://www.asx.com.au/asxpdf/20191213/pdf/44ck6vmrkb8n1p.pdf. 
  6. ↑ "Xero Limited Annual Report FY23". Xero Limited. https://brandfolder.xero.com/8HSCTPAX/as/4gvpkxzbcbvgq8k48f3vhtw/FY23_Annual_Report. 
  7. ↑ Mckenzie, Hamish (May 1, 2013). "Xero: A billion-dollar software company that had five years in stealth at the bottom of the planet – New Zealand" (in en). https://bambooinnovator.com/2013/05/02/xero-a-billion-dollar-software-company-that-had-five-years-in-stealth-at-the-bottom-of-the-planet-new-zealand/. 
  8. ↑ 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. 
  9. ↑ 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. 
  10. ↑ "Xero grows to $1 Billion revenue – Enterprise Times" (in en-GB). Enterprise Times. 20 July 2016. https://www.enterprisetimes.co.uk/2016/07/20/xero-grows-to-1-billion-revenue/. 
  11. ↑ Ryan, Holly (9 May 2018). "Xero halves losses, closes in on profitability" (in en-NZ). The New Zealand Herald. ISSN 1170-0777. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12048814. 
  12. ↑ "No guts, no glory for Xero boss" (in en). 20 September 2014. https://www.stuff.co.nz/business/industries/10519659/No-guts-no-glory-for-Xero-boss. 
  13. ↑ 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/. 
  14. ↑ 14.0 14.1 "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. 
  15. ↑ Brooks, Steve (20 July 2016). "Xero grows to $1 Billion revenue -" (in en-GB). https://www.enterprisetimes.co.uk/2016/07/20/xero-grows-to-1-billion-revenue/. 
  16. ↑ Shaw, Aimee (29 March 2017). "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. 
  17. ↑ "Xero hits million mark for trans-Tasman subscribers". https://www.reseller.co.nz/article/650373/xero-hits-million-mark-trans-tasman-subscribers/. 
  18. ↑ Ryan, Holly (4 March 2018). "Xero CEO Rod Drury stepping down" (in en-NZ). The New Zealand Herald. ISSN 1170-0777. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12006578. 
  19. ↑ "Xero appoints new CEO as Vamos set to depart" (in en-GB). 2022-11-10. https://www.nbr.co.nz/comings-and-goings/xero-appoints-new-ceo-as-vamos-set-to-depart/. 
  20. ↑ Ruth, Jenny (11 November 2022). "Xero shares plunge on CEO Steve Vamos' imminent departure" (in en). https://businessdesk.co.nz/article/infrastructure/xero-shares-plunge-on-ceo-steve-vamos-imminent-departure. 
  21. ↑ Waters, Cara (7 November 2019). "'A big milestone': Xero hits two million subscribers, revenue jumps". The Sydney Morning Herald. https://www.smh.com.au/business/small-business/a-big-milestone-xero-hits-two-million-subscribers-revenue-jumps-20191107-p5387t.html. 
  22. ↑ Chanthadavong, Aimee (11 November 2021). "Xero posts half-year net loss as investment in product development grows" (in en). https://www.zdnet.com/article/xero-posts-half-year-net-loss-as-investment-in-product-development-grows/. 
  23. ↑ "Reshaping Xero to enable disciplined growth and focus" (in en). 9 March 2023. https://www.xero.com/blog/2023/03/reshaping-xero-to-enable-growth/. 
  24. ↑ 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/. 
  25. ↑ Sherman, Matt. "Xero Review". https://www.merchantmaverick.com/reviews/xero-review/. 
  26. ↑ Fineberg, Seth (2 October 2012). "Xero Debuts Mobile App for Android". http://www.accountingtoday.com/accounting-technology/news/Xero-Debuts-Mobile-App-for-Android64178-1.html. 
  27. ↑ "Xero is preparing for Making Tax Digital" (in en-GB). 15 November 2018. https://www.accountancyage.com/2018/11/15/xero-is-preparing-for-making-tax-digital/. 
  28. ↑ 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. 
  29. ↑ "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/. 
  30. ↑ 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. 
  31. ↑ 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/. 
  32. ↑ "Shareholder update on Xero listing". 22 January 2018. https://www.nzx.com/announcements/313278. 
  33. ↑ Pullar-Strecker, Tom (6 September 2019). "Xero joins elite club as value surges past $10 billion". Stuff.co.nz. https://www.stuff.co.nz/business/115601594/xero-joins-elite-club-as-value-surges-past-10-billion. 
  34. ↑ Sharp, Ari (7 April 2009). "MYOB founder buys into rival" (in en). https://www.smh.com.au/business/myob-founder-buys-into-rival-20141112-9zeu.html. 
  35. ↑ 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/. 
  36. ↑ Tanwani, Maneka. "Xero secures US$141M from Accel Partners, Matrix Capital Management" (in en). https://e27.co/xero-secures-us141m-accel-partners-matrix-capital-management-20150225/. 
  37. ↑ 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/. 
  38. ↑ 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/. 
  39. ↑ 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/. 
  40. ↑ "Xero secures US$141M from Accel Partners, Matrix Capital Management" (in en). https://e27.co/xero-secures-us141m-accel-partners-matrix-capital-management-20150225/. 
  41. ↑ "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. 
  42. ↑ Rogers, Claire (21 July 2011). "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. 
  43. ↑ "Startup profile: Richard Francis from Spotlight Reporting". 2015-09-30. https://www.futurebooks.com/richard-francis-from-spotlight-reporting/. 
  44. ↑ Gray, Jamie (19 July 2018). "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. 
  45. ↑ "Xero acquires Hubdoc" (in en). 1 August 2018. https://www.finextra.com/pressarticle/74943/xero-acquires-hubdoc. 
  46. ↑ Brooks, Steve (16 November 2018). "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/. 
  47. ↑ Waters, Cara (2020-08-25). "Xero snaps up small business lender Waddle for $80 million" (in en). https://www.smh.com.au/business/small-business/xero-snaps-up-small-business-lender-waddle-for-80-million-20200825-p55p0r.html. 
  48. ↑ Chanthadavong, Aimee. "Xero to acquire Waddle for AU$80 million" (in en). https://www.zdnet.com/article/xero-to-acquire-waddle-for-au80-million/. 
  49. ↑ King, Philip. "Xero to cut hundreds of jobs, close Waddle app" (in en). https://www.accountantsdaily.com.au/technology/18276-xero-to-cut-hundreds-of-jobs-close-waddle-app. 
  50. ↑ Hood, Daniel (12 November 2021). "Xero acquires inventory mgmt. provider". https://www.accountingtoday.com/news/xero-acquires-inventory-management-provider-locate-inventory. 
  51. ↑ Scott, Josh (28 December 2021). "Xero to acquire Calgary's TaxCycle in $75 million CAD deal to expand Canadian presence". https://betakit.com/xero-to-acquire-calgarys-taxcycle-in-75-million-cad-deal-to-expand-canadian-presence/. 
  52. ↑ 52.0 52.1 "Xero establishes a technology base in India". https://www.xero.com/blog/2022/11/xero-establishes-technology-base-in-india/. 

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