Xero Limited · ASX:XRO
Xero — Shareholder Meeting (2011)
32 slides from Xero's shareholder meeting presentation, 2011
Slide 1: Annual Meeting 2011
xero Annual Meeting 2011
Slide 2: Strategic Update
Strategic Update
Slide 3: Xero model
Xero model Big start up • Raise enough money to win • Recruit the best team • Build presence, channel, ecosystem and advocates • Disrupt the product category by innovating on multiple fronts • Make entry difficult for new players • Deliver a great customer experience • Demonstrate leadership Build a
Slide 4: Customer acquisition record
Customer acquisition record 45,000 Paying business customers doubled in the last year 2007 2008 2009 2010 2011
Slide 5: Customers in 100+ countries
Customers in 100+ countries
Slide 6: 180,000 Xero users
180,000 Xero users 174,000 API requests per day 4,500 database hits per second
Slide 7: $44 billion processed
$44 billion processed
Slide 8: It's working
It’s working Customer numbers and revenue are growing exponentially Customers Revenue (000’s) 2007 204 24 2008 950 134 2009 6,000 959 2010 17,000 3,158 2011 36,000 9,341 Current annualised run rate over $15,000,000
Slide 9: Revenue and expenses
Revenue and expenses Well through the investment phase 10,000 Expenses 8,000 6,000 $000’s Revenue 4,000 2,000 0 7 8 8 9 9 r 10 0 r 11 p0 r0 p0 r0 p0 p1 Ma Ma Ma Ma Se Se Se Se 6-monthly results
Slide 10: Revenue generated per employee
Revenue generated per employee Responsibly growing the team $120,000 pa per employee Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Jun 11
Slide 11: Xero delivers quality software - fast
Xero delivers quality software - fast 60+ major releases July 2010 August September October Xero Personal - Splits, Labels, Import VAT adjustments (UK) Inventory Items Xero Personal - Notifications Rules Spend/Receive Money Editing Import/Export Inventory Items (Financial Snapshots) Xero Personal -
Slide 12: Xero Touch
Xero Touch
Slide 13: Google Apps Marketplace
Google Apps Marketplace Xero works seamlessly
Slide 14: Xero improves productivity by connecting advisors to businesses
Xero improves productivity by connecting advisors to businesses
Slide 15: Over half of the accountants in NZ use Xero
Over half of the accountants in NZ use Xero
Slide 16: Winning accountants in Australia
Winning accountants in Australia
Slide 17: We have changed the industry
We have changed the industry dj Ca A breath of fresh air in accounting HOME MEET DJCA PRICING CLOUD SYSTEMS OUR CUSTOMERS CONTACT DJCA The average spend on traditional business accounting is $3,000 a year. But for the same cost, Sidekick offers you so much more. Traditional accounting Sidekick $3,00
Slide 18: Single ledger is compelling
Single ledger is 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 19: The Modern Practice Accountant
The Modern Practice Best of breed tools to run a modern accounting practice Accountant
Slide 20: Delivering customers and revenue
Delivering customers and revenue
Slide 21: WorkflowMax
WorkflowMax Investment to create online tax module has paid off
Slide 22: Post + Xero partnership
Post + Xero partnership • Post + Xero working together to improve New Zealand SME productivity • Unique opportunity to be global leader in digital postal services • Partnership will deliver - digital addresses and delivery services - virtual mailboxes for customers and small businesses - address loo
Slide 23: Australian payroll acquisition
Australian payroll acquisition • Agreement to acquire Australian online payroll company Paycycle • Enhances Xero’s offering and accelerates growth in AU • Includes payroll, employee leave, tax and superannuation • Provides Xero with a specialist payroll development team • Total cost of acquisition A
Slide 24: Australia
Australia Gaining momentum in the Australian market • Established head office in Melbourne • Appointed Chris Ridd as Managing Director • Revenue increased 5x to $1.5m • Building the team rapidly • Staff of 14 located in Melbourne, Sydney, Brisbane and Perth • Covering direct cost Xero Melbourne Office
Slide 25: UK
UK Xero brand fully established in UK • Revenue increased 3.5x to $1.3m • Staff of 9 - completing 24hr coverage • Covering direct costs • Impending Yodlee MFA feeds for business banks should see acceleration • Shaping the UK market “When customers say for the first time, their accounting makes sense
Slide 26: US small market info
US small market info 25m small businesses 99.7% 40% 50% of all employees of all technology contribution to GDP workers $800B spent on technology in 2010 Source: US Small Business Administration
Slide 27: US strategy
US strategy Ramping up our presence in the US Complete US Product Influencing the influencers US based team Connecting into the ecosystem Build brand with partnerships Online first - then physical
Slide 28: Financial summary
Financial summary Summary Audited Financials (NZ$000’s) Income 31 March 31 March 31 March 31 March Statement 2011 2010 2009 2008 • Xero recorded a net loss of Total number of $7.5 million for the 12 months 36,000 17,000 6,000 950 customers to 31 March 2011 Operating 9,341 3,158 959 134 • Customer nu
Slide 29: Strong position
$ millions Cash 0 6 12 18 24 30 Se p 07 Strong position M ar 08 Se p 08 M ar 09 Se p 09 M ar 10 Se p 10 M ar 11
Slide 30: Break-even, or grow
Break-even, or grow • It’s all working well • It’s still very early in the industry • It doesn’t make sense to slow down • Strong cash position and unlikely to run out • Small competitors are not well funded • The opportunity is now
Slide 31: Growth and Durability
Growth and Durability Internet applications Growth Accounting Software Durability
Slide 32: Questions
Questions