Xero Limited (XRO) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning from Sydney, Australia. Thank you for joining our investor briefing today covering Xero's financial and operating results for the full year ending March 31st, 2024. I'm Sikindras Nkasti and I'm here with Kirstie, our CFO. Moving to our results. Our first agenda item is a summary of Xero's performance during the full year. I'll then pass to Christy to cover our financial results in detail before I finish with strategic priorities and Xero's outlook. And after that, we'll move to Q&A. So, moving to a summary of our results on slide five. We're really proud of this result, and in particular, it shows you we are capable of executing towards our future aspirations. You'll see that Xero has continued its track record of strong revenue growth, and at the same time, we have delivered a meaningful increase in profitability, and that's led to us achieving a rule of 40 outcome. I'm going to touch on the key metrics here, and Christy will discuss them in more detail later. Revenue grew 22% to $1.714 million, or 21% on constant currency terms. Adjustability of $527 million is up $225 million, or 75% over last year. Together, the strong operating results and improved free cash flow generation resulted in a rule of 40 outcomes of 41%. Moving to the next slide, Xero is a macro-resilient business that consistently delivers strong top-line growth. This year, we saw growth balance between subscribers and ARPU, with subscriber growth of 11% year-over-year and ARPU of 14%. Subscriber additions were $419,000 in the year. Price changes across both our business addition and partner addition products were a key driver of our bill increasing 14% or 10% on a constant currency basis. I'll now spend a few minutes outlining the regional contributions to this revenue growth, as well a...