Xero Limited · ASX:XRO
Xero — Shareholder Meeting (July 2012)
27 slides from Xero's shareholder meeting presentation, July 2012
Slide 1: Xero Investor Presentation July 2012
Xero Investor Presentation July 2012
Slide 2: Customer growth
Customer growth Annual meeting Customers 2009 10,000 2010 22,000 2011 45,000 Today 100,000
Slide 3: Customer acquisition
Customer acquisition 100,000 First 50,000 took 5 years Second 50,000 10 months 2007 2008 2009 2010 2011 Today
Slide 4: Revenue growth
Revenue growth Strong monetization of model Year Ended Revenue Customers 31 March ($000’s) 2007 204 24 2008 950 134 2009 6,000 959 2010 17,000 3,158 2011 36,000 9,341 2012 78,000 19,370 Today 100,000 - Current annualized run rate over $34,500,000
Slide 5: Momentum
Momentum Growth indicators all positive • Xerocon NZ attendees doubled to 400 • Xerocon AU attendees tripled to 400 • 7 roadshows, 2,000+ training and sales events worldwide in the past year, 26,500 attendees • Xero partners grew to 4,200 • 100+ accounting firms are 100% Xero • Add-ons partners grew
Slide 6: Revenue share by country
Revenue share by country 57% of committed revenue is now from offshore markets US UK NZ AU
Slide 7: SaaS Business
SaaS Business Product portfolio Revenue Smart people building product with compelling value Employee Costs Customer acquisition cost (CAC) Sales costs to Efficient on-boarding of customers trend down - Sales teams, channel and direct marketing Cost to serve (CTS) CTS that trends Deliver a robust serv
Slide 8: Revenue generated per employee
Revenue generated per employee Responsibly growing the team $150,000 $100,000 $50,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Slide 9: Serious infrastructure
Serious infrastructure • 100+ app servers • 2 data centres for redundancy • Access to 120,000 Akamai caching servers • 60TB of data • 80,000 web requests every 5 minutes • Peak 2,500 concurrent users • 1m+ bank statement lines daily • 12,000 customer care tickets per month • 99.986% uptime
Slide 10: Delivering quality software - fast
Delivering quality software - fast 10 major releases in the past year Releases included: • Fully integrated payroll (AU) • Pre/Overpayments • Budgets - Import/Export • VAT late claims (UK) • Additional bank feeds • Enhancements to Partner Edition • Discounts • Xero US version and Partner Edition • C
Slide 11: Other activities
Other activities Advocacy • Initiated NZ industry Cloud Computing Code of Practice • Established NZ web developer conference Integration • Successful integration of Paycycle into Xero application • Successful integration of WorkflowMax into Auckland team Team • Hired 147 staff in 12 months, total st
Slide 12: Australian payroll update
Australian payroll update • Announced Paycyle acquisition at last Annual meeting • Further investment - New Canberra Office - Team grown from 6 to 12 • Full integration successfully launched in May 2012 • Contributing to acceleration of AU
Slide 13: WorkflowMax acquisition
WorkflowMax acquisition Time and Cost for professionals Financials • Total cost of acquisition $6m • $2m annual run rate for stand alone product Successful acquisition • Created Practice Management for accountants • Delivery of NZ tax has disrupted market • Team grew from 6 to 13 Strategy for this y
Slide 14: Spotlight Workpapers acquisition
Spotlight Workpapers acquisition • Another key piece in winning the accountants • Workpapers becoming a key feature • Deal done in 2 tranches • $400,000 (cash and shares) • $400,000 (conditional on achievement of milestones) • Will remain in beta until next year
Slide 15: Business focus
Business focus Goal Grow to a million+ customers Service Investment Product scalability Offshore teams Accountant Establish Tune low Continue to Execution channel direct business cost SaaS build world strategy model model class team
Slide 16: Winning the accountant
Winning the accountant Providing the complete solution for partners Small Personal SmallMedium Medium Large Partner Edition • Cashbook • Ledger Reporting Practice Small Workpapers Tax Management Website Document e-Marketing Management Office/Email
Slide 17: Single ledger disruptive and compelling
Single ledger disruptive and compelling For the For small accounting businesses practice General ledger Shared Invoicing Debtors Management accounts Annual accounts data Creditors GST Fixed assets Expense claims Tax Contacts
Slide 18: Direct channel
Direct channel Generate More lifetime Xero customers leads SEO, social, online marketing campaigns, partner events Earn Convert referrals traffic to trials Contact trigger points Hard working homepage Automate, measure Compelling content and refine Easy sign up Convert trials to customers
Slide 19: Country reviews
Country reviews Customer Accountant Channel Phase NZ AU UK USA Activities Activities Activities Direct customer sales, targeting early adopters Awareness and 1. Product identification of Initiate relationships validation Gain customer insights ü ü ü ü reference customers for feature development
Slide 20: NZ highlights
NZ highlights Xero House 3 Market Lane • 104% increase in customers, now at 47,000+ Wellington • 1,850 Xero partners • Xero Partner Certification and all core training courses earn verifiable CPD hours from NZICA • Opened larger offices in Auckland and Wellington Xero Auckland 69 St George Bay Road •
Slide 21: UK highlights
UK highlights • Revenue increased 108% from $1.3m to $2.7m • Opened a new office in Milton Keynes • Staff grew from 9 to 16 - completing 24hr coverage • Covering direct costs • Shaping the UK market
Slide 22: US highlights
US highlights • Jamie Sutherland appointed as Xero US President • New office opened in SOMA, San Francisco • Relocated CTO and Community Manager • Team grew to 11 • US Advisory Board set up • Delivered integrated Checks • ADP partnership • Additional US specific app features in development
Slide 23: US response is positive
US response is positive Xero gets us working in the information analysis space - it elevates us from the transaction processing role, where we can bring real value I’ve significantly improved my efficiency with Xero and doubled my business in the last 6 months Jim Wilkinson, Braver Group, Rhode Islan
Slide 24: AU highlights
AU highlights • 26,000+ customers in Australia • Over 1,000 partners • From 10 to 40 staff in 18 months • Integrated Payroll launched in May 2012 • Over 100 “Add Ons” solutions partners (1/3 from AU) • AU team playing active leadership role in the company
Slide 25: New Xero Australia offices
New Xero Australia offices Melbourne Sydney Canberra Brisbane Hawthorn Surry Hills Canberra City Milton Opening in Dec 2012 Opened in July 2012 Opened in Nov 2011 Opened in June 2012 Ope Ope
Slide 26: Senior leadership team
Senior leadership team Rod Drury Natasha Hubbard Jamie Sutherland Chief Executive/Executive General Manager HR President, USA Director Alastair Grigg Paula Jackson Gary Turner Chief Operating Officer General Manager Marketing Managing Director, UK Ross Jenkins Duncan Ritchie Chris Ridd Chief Financia
Slide 27: : Miss ind cont
: Miss ind cont wu #bestsoftwareever