Xero Annual Meeting

Media Release

[link to the CEO and Chairman's presentations from the meeting]

GROWTH, INNOVATION, PARTNERSHIPS KEY ITEMS ON XERO AGENDA AT ANNUAL SHAREHOLDER MEETING

Passes key milestone of 150,000 subscribers in New Zealand and 540,000+ worldwide One of world’s fastest growing SaaS companies, fastest growing payroll vendor

WELLINGTON 22 July, 2015 Xero (@Xero) today held its Annual Shareholder Meeting in Wellington where the company detailed achievements from the past year and the outlook for the year ahead. Xero also announced it had passed a significant milestone in New Zealand, reaching 150,000 subscribers and over 540,000 worldwide.

In the financial year ending 31 March 2015, Xero passed through $100 million revenue milestone, and today provided guidance that it expects subscription revenue for the full year to exceed NZ$200 million for the financial year ending 31 March 2016, based on June 2015 FX rates.

Global recognition
In a year of accolades, Forbes recently named Xero #1 Most Innovative Growth Company for the second year running. Locally in New Zealand, Xero picked up HiTech Company of the Year and in June, IDC named Xero the fastest growing company in the payroll accounting space demonstrating 74.7 percent yearoveryear revenue growth in 2014 . Xero was also recently named the fastest [IDC, Worldwide Payroll Accounting Market Shares, 2014: Xero and Workday Lead Payroll Growth into the Cloud, Doc #256819, June 2015.] growing financial applications vendor with 80.3 percent yearoveryear revenue growth in 2014, by IDC [IDC, Worldwide Financial Applications Market Shares, 2014: Year of SMB and Public Cloud, Doc #257867, July 2015.].

Xero is becoming an indispensable platform for small business, with thirdparty integrations and an ecosystem featuring more than 400 partners. Existing relationships and distribution partners include Apple, Avalara, Bill.com, Google, Microsoft, Mindbody, Shopify and Square. Xero is continuing to invest in application programming interface (API) improvements to fuel growth of its developer ecosystem and support tighter integrations with strategic partners.

Xero’s growth agenda

Xero strategy remains firmly focused on growth, attracting worldclass investment to fuel this. Earlier this year, Xero attracted a NZ$132.9 million investment from Accel Partners and an additional NZ$14.3 million from Matrix Capital Management.

Since its inception, Xero has set an unprecedented pace of innovation in an industry that was previously accustomed to annual product update cycles. The company delivers regular product updates and new features, with no intention of letting up its relentless pursuit of giving its customers the best possible experience.

Xero’s awardwinning,innovative service support model provides expert customer support around the clock.

With Xero offices all over the world, the customer care team delivers quick solutions to Xero users, no matter where they are. Xero’s innovative support model is benefiting customers every day and saving them time waiting on the phone.

Key points from Xero’s Annual Meeting 2015

Delivering on what it said it would do at last year’s Annual Meeting across product, people, partnerships and gotomarket.

Detailed the momentum driving Xero from an accounting platform to a business platform, and leveraging the market network effect that presents opportunity as a financial platform.

Demonstrated that it is one of only a few SaaS companies worldwide to scale its user base to more than 10,000 subscribers (few have done this).

Early FY16 outlook including expecting subscription revenue for the full year to exceed NZ$200 million for the financial year ending 31 March 2016, based on June 2015 FX rates.

Comments on the News:
Our team has proven its execution ability and we are building a small business platform that will help millions of businesses thrive,” said Xero CEO, Rod Drury.

“Our journey has just begun,” said Andy Lark, Xero’s Chief Marketing Officer. “We have an immense global opportunity to become the platform small businesses thrive on."

Xero NZ Managing Director, Victoria Crone, said: “I love that Xero is making it easier and faster for around a quarter of small businesses in New Zealand to run their business. I’m excited that we’re cutting an even greater slice of the small business market in Xero’s home country. Congratulations and thank you to each of our 150,000 Kiwi subscribers."

ENDS

About Xero

Xero is beautiful, easytouse
online accounting software for small businesses and their advisors. The company has 540,000 subscribers in more than 180 countries. Xero seamlessly integrates with over 400 thirdparty tools, and was ranked No. 1 by Forbes as the World's Most Innovative Growth Company in 2014 and 2015.

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