Xero market cap is $14.8 b, and annual revenue was $552.82 m in FY 2019

Xero Gross profit (H1, 2020)288.5 M

Xero Gross profit margin (H1, 2020), %85.2%

Xero Net income (H1, 2020)1.3 M

Xero EBIT (H1, 2020)14.7 M

Xero Cash, 30-Sept-2019110.9 M

Xero EV15.2 B

Xero revenue was $552.82 m in FY, 2019 which is a 36% year over year increase from the previous period.

Xero revenue breakdown by business segment: 97.4% from Subscription and 2.6% from Other

Xero revenue breakdown by geographic segment: 5.4% from Rest of World, 8.0% from North America, 21.6% from United Kingdom, 17.7% from New Zealand and 47.3% from Australia

NZD | FY, 2014 | FY, 2015 | FY, 2016 | FY, 2017 | FY, 2018 | FY, 2019 |
---|---|---|---|---|---|---|

## Revenue | 70.1m | 123.9m | 207.1m | 295.4m | 406.6m | 552.8m |

| 77% | 67% | 43% | 38% | 36% | |

## Cost of goods sold | 24.5m | 37.4m | 49.9m | 69.4m | 76.2m | 90.9m |

## Gross profit | 45.6m | 86.4m | 157.2m | 226.0m | 330.3m | 461.9m |

| 65% | 70% | 76% | 77% | 81% | 84% |

## Sales and marketing expense | 55.1m | 93.5m | 148.3m | 166.8m | 193.9m | 248.0m |

## R&D expense | 18.4m | 49.0m | 69.7m | 93.3m | 118.8m | 137.8m |

## General and administrative expense | 12.4m | 24.5m | 30.8m | 37.9m | 47.0m | 66.1m |

## Operating expense total | 85.9m | 167.0m | 248.8m | 297.9m | 359.7m | 451.9m |

## EBIT | (39.0m) | (75.1m) | (89.1m) | (70.7m) | (28.7m) | (8.7m) |

| (56%) | (61%) | (43%) | (24%) | (7%) | (2%) |

## Interest expense | 25.0k | 55.0k | 107.0k | 315.0k | 17.7m | |

## Interest income | 5.1m | 7.7m | 8.2m | 3.8m | 2.4m | 8.0m |

## Pre tax profit | (33.9m) | (67.5m) | (81.0m) | (67.1m) | (27.3m) | (23.1m) |

## Income tax expense | (808.0k) | (2.1m) | (1.5m) | (2.0m) | (523.0k) | 4.0m |

## Net Income | (34.7m) | (69.5m) | (82.5m) | (69.1m) | (27.8m) | (27.1m) |

- Source: Company Filings

NZD | H1, 2016 | H1, 2017 | H1, 2019 | H1, 2020 |
---|---|---|---|---|

## Revenue | 137.2m | 187.8m | 256.5m | 338.7m |

## Cost of goods sold | 33.8m | 37.4m | 44.3m | 50.1m |

## Gross profit | 103.4m | 150.4m | 212.3m | 288.5m |

| 75% | 80% | 83% | 85% |

## Sales and marketing expense | 86.2m | 92.3m | 68.9m | 146.1m |

## R&D expense | 43.9m | 57.7m | 68.9m | 85.3m |

## General and administrative expense | 19.1m | 21.5m | 31.1m | 41.1m |

## Operating expense total | 149.2m | 171.5m | 168.8m | 272.5m |

## EBIT | (45.8m) | (21.1m) | (22.4m) | 14.7m |

| (33%) | (11%) | (9%) | 4% |

## Interest expense | 17.4m | |||

## Interest income | 2.1m | 1.1m | 782.0k | 7.4m |

## Pre tax profit | (43.8m) | (20.1m) | (27.4m) | 3.8m |

## Income tax expense | 1.1m | 945.0k | 1.2m | 2.5m |

## Net Income | (43.9m) | (21.1m) | (28.6m) | 1.3m |

- Source: Company Filings

NZD | FY, 2014 | FY, 2015 | FY, 2016 | FY, 2017 | FY, 2018 | FY, 2019 |
---|---|---|---|---|---|---|

## Cash | 14.9m | 58.9m | 39.0m | 27.7m | 21.0m | 121.5m |

## Accounts Receivable | 3.7m | 5.7m | 8.7m | 11.8m | 5.5m | 7.1m |

## Current Assets | 224.3m | 293.5m | 211.5m | 147.7m | 118.0m | 586.6m |

## PP&E | 9.9m | 16.6m | 15.5m | 15.9m | 21.2m | 91.5m |

## Total Assets | 271.8m | 378.4m | 328.1m | 293.3m | 289.1m | 970.3m |

## Accounts Payable | 3.6m | 5.7m | 9.6m | 11.4m | 7.4m | 5.7m |

## Short-term debt | 11.5m | |||||

## Current Liabilities | 16.8m | 30.5m | 46.8m | 65.7m | 61.1m | 105.1m |

## Long-term debt | 71.3m | |||||

## Non-Current Liabilities | 57.0k | 2.3m | 2.2m | 3.4m | 4.9m | 511.9m |

## Total Debt | 82.8m | |||||

## Total Liabilities | 16.9m | 32.7m | 49.0m | 69.1m | 65.9m | 617.0m |

## Common Stock | 336.3m | 492.0m | 503.3m | 522.6m | 537.7m | 627.8m |

## Retained Earnings | (85.9m) | (155.5m) | (237.9m) | (307.0m) | (334.8m) | (343.9m) |

## Total Equity | 254.9m | 345.7m | 279.1m | 224.2m | 223.1m | (353.3m) |

## Debt to Equity Ratio | -0.2 x | |||||

## Debt to Assets Ratio | 0.1 x | |||||

## Financial Leverage | 1.1 x | 1.1 x | 1.2 x | 1.3 x | 1.3 x | -2.7 x |

- Source: Company Filings

NZD | H1, 2017 | H1, 2019 | H1, 2020 |
---|---|---|---|

## Cash | 23.3m | 21.2m | 110.9m |

## Current Assets | 123.9m | 658.1m | 646.4m |

## PP&E | 21.1m | 73.1m | 92.3m |

## Total Assets | 285.3m | 996.4m | 1.1b |

## Short-term debt | 3.5m | 11.8m | 12.3m |

## Current Liabilities | 62.6m | 159.9m | 115.4m |

## Long-term debt | 403.9m | 464.4m | |

## Non-Current Liabilities | 6.2m | 506.9m | 564.9m |

## Total Debt | 3.5m | 415.8m | 476.6m |

## Total Liabilities | 68.8m | 666.8m | 680.3m |

## Common Stock | 525.8m | 607.6m | 643.7m |

## Retained Earnings | (328.1m) | (345.3m) | (342.5m) |

## Total Equity | 216.5m | 329.6m | 379.8m |

## Debt to Equity Ratio | 0 x | 1.3 x | 1.3 x |

## Debt to Assets Ratio | 0 x | 0.4 x | 0.4 x |

## Financial Leverage | 1.3 x | 3 x | 2.8 x |

- Source: Company Filings

NZD | FY, 2014 | FY, 2015 | FY, 2016 | FY, 2017 | FY, 2018 | FY, 2019 |
---|---|---|---|---|---|---|

## Net Income | (34.7m) | (69.5m) | (82.5m) | (69.1m) | (27.8m) | (27.1m) |

## Depreciation and Amortization | 42.1m | 54.7m | 17.9m | |||

## Cash From Operating Activities | (21.0m) | (38.6m) | (34.8m) | (4.4m) | 41.2m | 114.2m |

## Purchases of PP&E | (5.1m) | (10.3m) | (4.7m) | (6.7m) | (15.3m) | (15.7m) |

## Cash From Investing Activities | (27.4m) | (49.8m) | (53.8m) | (66.4m) | (78.1m) | (140.5m) |

## Short-term Borrowings | (112.0m) | (76.8m) | (40.7m) | |||

## Cash From Financing Activities | 57.2m | 132.2m | 66.2m | 60.1m | 30.1m | 143.6m |

## Net Change in Cash | 8.8m | 43.8m | (22.3m) | (10.8m) | (6.9m) | 117.3m |

- Source: Company Filings

NZD | H1, 2016 | H1, 2017 | H1, 2019 | H1, 2020 |
---|---|---|---|---|

## Net Income | (43.9m) | (21.1m) | (28.6m) | 1.3m |

## Cash From Operating Activities | (13.4m) | 6.1m | 36.0m | 71.5m |

## Purchases of PP&E | (2.3m) | (9.7m) | (6.9m) | (5.3m) |

## Cash From Investing Activities | (32.4m) | (40.7m) | (76.1m) | (66.7m) |

## Short-term Borrowings | (56.0m) | (41.0m) | (4.8m) | (5.3m) |

## Cash From Financing Activities | 42.5m | 30.2m | 39.6m | (22.5m) |

## Net Change in Cash | (3.3m) | (4.4m) | (496.0k) | (17.7m) |

- Source: Company Filings

NZD | FY, 2014 |
---|---|

## Financial Leverage | 1.1 x |

Xero's Subscribers was reported to be 1.4 m in FY, 2018. Xero's Transaction Volume was reported to be $2.8t in FY, 2019.

FY, 2014 | FY, 2015 | FY, 2016 | FY, 2017 | FY, 2018 | FY, 2019 | |
---|---|---|---|---|---|---|

## Subscribers | 284 k | 475 k | 717 k | 1.04 m | 1.39 m | |

## Annualized Committed Monthly Revenue | $93 m | $159.34 m | $257.90 m | $359.70 m | $484.42 m | $638.20 m |

## ARPU | $27.30 | $28 | $30 | $29 | $29.10 | $30.66 |

## Net Customer Additions | 284 k | 191 k | 242 k | 318 k | 351 k | |

## Transaction Volume | $300 b | $1 t | $1.40 t | $2.15 t | $2.80 t | |

## Countries | 180 | 180 | 180 | 180 | ||

## Partners | 11.60 k | 16 k | ||||

## Updates Delivered | 1.20 k | |||||

## Invoices Sent per Year | $320 b | |||||

## Payrolls Processed Annually | $4.10 b | |||||

## AWS Servers Used | 4.80 k | |||||

## Customers (Australia) | 109 k | 203 k | 312 k | 446 k | 583 k | |

## Customers (New Zealand) | 102 k | 138 k | 186 k | 246 k | 301 k | |

## Customers (North America) | 18 k | 35 k | 62 k | 92 k | 132 k | 195 k |

## Customers (UK) | 47 k | 83 k | 133 k | 212 k | 312 k | 463 k |

## Customers (Other world) | 8 k | 16 k | 24 k | 39 k | 58 k | 83 k |