Xero : 4/12/18 - Xero celebrates ‘beautiful business’ milestone as subscribers pass one million across Australia and New Zealand

MEDIA RELEASE

Xero celebrates 'beautiful business' milestone as subscribers pass one million across Australia and New Zealand

The region's small businesses are poised to lead the world in the uptake of cloud technology

WELLINGTON, 4​ December 2018 -X​ero​(​ASX: XRO),​ t​ he global small business platform, today announced it surpassed one million subscribers* across Australia and New Zealand (ANZ), cementing the business as the regional leader in the uptake of cloud accounting technology.

Craig Hudson, Xero's Managing Director of New Zealand & Pacific Islands, says: "Our purpose is to have a positive impact on the world by helping small businesses grow. Cloud technology has revolutionised the way small businesses operate. They are now working anytime from anywhere, with 24/7 real-time access to their financial position."

"In Australia and New Zealand the penetration of cloud accounting sits around 40 percent, more than double what it is worldwide, which shows clear leadership and uptake. This is exciting, because while both New Zealand and Australia are geographically distant, the innovation we see coming from our region is powered by cloud technology and global connectivity. Xero's next opportunity for growth centres on the continued evolution of cloud technology and together, with our small business customers and partners, we are paving the way to extend business offerings on the Xero platform," he said.

Impacting the small business economy

With one million subscribers across ANZ, Xero has become a major conduit for economic activity. Over the past 12 months, the data shows that in ANZ there were:

• ● 259 million invoices passed through the platform

• ● $1,514 billion worth of transactions processed**

• ● More than 1.2 million employees paid through Xero payroll per month

Trent Innes, Xero's Managing Director of Australia & Asia, says: "Our growth is an indication of the strength of the small business economy across Australia and New Zealand. Our data shows there is a direct correlation between digital connectivity and positive business outcomes for small business. We believe that best-in-class cloud technology positively drives economic prosperity for small business and as a result - the broader economy."

*Xero measures subscribers as each unique subscription to a Xero-offered product that is purchased by an accounting partner or an ​

end user and which is, or is available to be, deployed. Subscribers that have multiple subscriptions to integrated products on the Xero platform are counted as a single subscriber.

** Incoming and outgoing transactions, 12 month period

Creating a partner community

Xero has established a significant partner community of accountants and bookkeepers in the region, attracting more than 3,500 attendees to Xerocon Brisbane this year and registrations of over 13,000 for New Zealand and Australia's partner roadshows.

One of the early adopters of the cloud, Tim Hoopmann, the founder of Spinn Business Solutions, a cloud technology consultancy which was previously a cloud based bookkeeping business, the Cornerstone Group, says that he believes the bookkeepers and accountants within the Xero community are more connected and engaged than ever.

"Xero does an incredible job of creating a community. That didn't exist before for bookkeepers or accountants - they helped us feel like we were part of something," Mr Hoopmann said.

Mr Innes and Mr Hudson both acknowledged the partner community and small business customers that have been part of the Xero journey and contributed to this milestone.

"Our ANZ partners are the true early adopters when it comes to cloud technology. We couldn't have achieved this milestone without the partnership from this community to help shape the platform. We're very grateful for their support and joining us on this journey," says Mr Hudson.

Mr Innes added, "One of the great Australian and New Zealand dreams is to be your own boss but it takes guts to risk it all to follow that passion. We have some of the most hard working and creative customers out there who are truly demonstrating what beautiful business is."

-ENDS-

About Xero

Born in the cloud, X​ ero​ is a beautiful, easy-to-use platform for small businesses and their advisors. The company has 1.6 million subscribers in over 180 countries and a thriving ecosystem, seamlessly integrating with over 700 apps. On the inaugural 2018 Financial Times FT1000 High-Growth Companies Asia Pacific list, Xero was the fastest growing tech company in the $200 million+ segment. Xero won Technology Provider of the Year at the British Small Business Awards in 2016 and was rated by Canstar Blue as Australia's best accounting software in four consecutive years from 2015 to 2018.

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Abby Hempfling	Natalie Benning
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