Xero Hits 1 Million Subscribers in AU & NZ

“Listed cloud accounting software provider Xero has hit its next major milestone, surpassing one million subscribers in Australia and New Zealand,” writes Yolanda Redrup in an article for The Australian Financial Review.

“Speaking to The Australian Financial Review Xero chief executive Steve Vamos said the business was increasingly investing in its new platform revenues division, which includes products such as payroll, expenses and its $94 million acquisition Hubdoc.”

“We have the potential to move from cloud accounting to doing a lot more for business. We’re going from accounting to being a small business platform,” he said.

“Payroll has been very strong in Australia… In New Zealand we’re seeing growth in payroll too, but expenses has been the highlight and it only launched six months ago.”

“Xero estimates that cloud accounting software penetration is at 40 per cent in ANZ, about double that of other markets like the US and UK,” writes Redrup.

“As part of Xero’s plan to expand from cloud accounting software to become a financial services platform, Mr Vamos said it would reposition itself from a subscriptions to a services business.”

“While Australia and New Zealand is comfortably Xero’s biggest market, contributing 66 per cent of its $256.5 million in revenue in the first half to September 30, it expects the UK and US to overtake it in future,” as reported in the article.

Xero was founded in 2006 in Wellington, New Zealand.

Article Source: The Australian Financial Review, Yolanda Redrup, December 4, 2018

Image Source: Twitter – Steve Vamos