Slide 1: Beautiful accounting software
For personal use only Beautiful accounting software
Slide 2: Important notice
Important notice For personal use only This presentation is given on behalf of Xero Limited (Company number NZ 1830488, AU ARBN 160661183 NZX/ASX:XRO). Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recom
Slide 3: Investor calendar
Investor calendar For personal use only Annual results Annual report Annual meeting 24th April* 21st May* 22nd July* * Dates New Zealand time 3
Slide 4: 2015: Building the platform to win
2015: Building the platform to win For personal use only Built capability Product releases Customers People. 403 into team Fy15 Completed horizontal platform Expanded customers in all markets Team at scale after major focus recruiting Xero now meets the needs of the Building Operating Platform to an
Slide 5: Delivering a superior experience
Delivering a superior experience For personal use only First accounting experience people love Uptime Ecosystem applications Recognised leader in first three markets Best in class availability 20% attach rate across business Responsive and trusted relationship editions Innovative support model- deli
Slide 6: Delivered 80+% revenue growth
Delivered 80+% revenue growth For personal use only Subscription revenue YOY subscription revenue growth $67m for year ended 31 March 2014 83% constant dollar Annualised Committed Monthly Revenue Cash to invest $93m as at 31 March 2014 $210M as at 31 March 2014 6
Slide 7: Winning in a competitive environment
Winning in a competitive environment For personal use only Hybrid software tactics Cloud platform effect Cloud platform effect Flood of brand and Beautiful cloud experience Maintained premium pricing marketing spend builds growth virally 15,000+ Banklink conversions in FY15 Great experiences allow +
Slide 8: Recognition as best product
Recognition as best product For personal use only “Xero has helped us to just have a better handle on everything – to actually make decisions and move forward to grow” @threebabesbake “Find/Recode feature released today could quite possibly be the biggest time saver since the introduction of the ban
Slide 9: Winning global firms
Winning global firms For personal use only Large firms thinking globally Partnerships and using cloud to address Deloitte Private Australia high growth market KPMG UK KPMG Singapore 9
Slide 10: Results
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Slide 11: Subscription revenue
Subscription revenue For personal use only 12 months 12 months ending 31 Mar 15 ending 31 Mar 14 $M $M % Change NEW ZEALAND 32.6 23.2 41% AUSTRALIA 56.5 27.7 104% UNITED KINGDOM 19.3 10.1 91% NORTH AMERICA 7.7 3.3 133% REST OF WORLD 4.8 2.6 85% TOTAL 120.9 66.9 81% 11
Slide 12: Customers expanded
Customers expanded For personal use only At 31 Mar 15 At 31 Mar 14 % change NEW ZEALAND 138,000 102,000 35% AUSTRALIA 203,000 109,000 86% UNITED KINGDOM 83,000 47,000 77% NORTH AMERICA 35,000 18,000 94% REST OF WORLD 16,000 8,000 100% TOTAL 475,000 284,000 67% 12
Slide 13: Strong financial performance
Strong financial performance For personal use only Year ended Year ended 31 March 2015 31 March 2014 % FY2015 % FY2014 $M $M Operating revenue Operating revenue Subscription revenue 120.9 66.9 - - Total operating revenue 123.9 70.1 - - Cost of revenues 37.4 24.5 30% 35% Gross margin percentage 70% 6
Slide 14: Strong financial performance
Strong financial performance For personal use only Metric Expectation at commencement of FY2015 Performance FY2015 YoY Subscription rev growth “Xero expects strong revenue growth to continue for the $120.9M 81% foreseeable future.” Funding “Maintain strong cash position for growth agenda” $269M +28%
Slide 15: Investment in people
Investment in people For personal use only 403 staff hired in the past 12 months GLOBAL STAFF* 29 General & admin NZ 658 26 Business support AU 185 UK 104 214 Product 35 Cost to serve 86% growth US 214** in FY2015 Total 1,161 99 Sales & marketing * Total staff in each country ** US GTM team 64 staff
Slide 16: Country SaaS metrics
Country SaaS metrics For personal use only NZ AU UK NA ROW Group ARPU $23.90 $30.50 $26.00 $29.70 $37.50 $28.00 CAC months 7.8 8.7 16.7 42.5 2.9 13.5 FY2015 Customer Churn 0.9% 1.1% 1.3% 3.1% 2.1% 1.2% Life time value (LTV) $1,818 $2,008 $1,418 $662 $1,387 $1,622 Life time value / CAC* 9.8 7.6 3.3 0
Slide 17: Group SaaS metrics
Group SaaS metrics For personal use only CAC months for the Group increased from 11.8 to 13.5 months due to the ongoing focus to accelerate growth through sales and marketing activities. Excluding North America, CAC months for the Group were Group 9.9 (8.2 in FY14) representing an efficient sales mod
Slide 18: New Zealand
New Zealand For personal use only Leading accounting software provider Payroll launched to increase ARPU in CUSTOMERS SUB REVENUE 138,000 $33M FY2016 Launched cloud farming solution increased farming segment ACMR by over 100% 31% share* ACMR $40M Improving reporting in practice tools accelerating pa
Slide 19: Australia
Australia For personal use only Leading cloud accounting solution CUSTOMERS SUB REVENUE Ranked #1 most innovative company** Leading branded search in category Over 8,000 accounting and 203,000 $57M bookkeeping partners 10% share* ACMR $74M ‘Big 4’ bank API partnership 800+ accounting firms adopted X
Slide 20: United Kingdom
United Kingdom For personal use only Leading cloud accounting solution CUSTOMERS SUB REVENUE Increased team from 57 to 104 to drive growth Partnerships with: RBS, Natwest, 83,000 $19M Santander and Metrobank 2% share* Building senior leadership team Increasing momentum following UK Xerocon CUSTOMERS
Slide 21: North America
North America For personal use only Product fit addressed CUSTOMERS SUB REVENUE 300% YoY increase in online leads in last quarter 35,000 $8M H2 delivered a 300% increase on H1 <1% share* ACMR $12M net new customers Focus on building online direct model to address massive TAM XERO CUSTOMER GROWTH TRE
Slide 22: US progress
US progress For personal use only Actions US executive focus US leadership in place Investment in bookkeeping and accounting channel Growing digital and channel engagement Establish high velocity automated sales and Full solution with accounting, invoicing, marketing engine payroll in 7 states, and
Slide 23: Leading growth
Leading growth 475k For personal use only $159 %) R 91 CUSTOMERS C M , A ACMR 1 0 % u e1 $121 e n SUBSCRIPTION REVENUE Rev i on 284k i p t sc r ub $93 R (S G CA 157k $67 $52 81k $36 36k $25 17k $18 $12 $6 $8 2010 2011 2012 2013 2014 2015 23
Slide 24: At the beginning of platform evolution
At the beginning of platform evolution For personal use only Integrated Small Accounting accounting Business features & payroll platform The Big data for Financial Small Business Web 2007 Accounting platform TODAY 2015+ Rapid platform development foundation development beyond accounting 24
Slide 25: Incredibly well positioned
Incredibly well positioned For personal use only Xero’s around the world all on a mission to win First global accounting Massive and expanding TAM, significant new solution people love revenue opportunities First global small Global strategy and business cloud accounting platform proven execution 25
Slide 26: For personal use only
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Slide 27: Beautiful accounting software
For personal use only Beautiful accounting software