Well done Xero!
Xero have just announced their customer numbers as of 31 March 2009. They now have 6000 paying customers. They had 4000 customers on the 19th of February, and therefore have added 2000 customers in 40 days. Since the previous 1000 customers took 50 days to add, I had forecast they would have about 5000 customers today, so this far exceeds that forecast. Well done Xero.
One interesting point was that the UK has significantly contributed to this number; they now have 2000 paying customers. On February 19th they had 1000 customers signed in the UK, so of the 2000 customers signed in the last 40 days, half of them are new UK customers. That is quite an interesting trend.
Disclosure: I am a Xero shareholder and one of many delighted Xero customers!
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By Jared L, April 1, 2009 @ 5:41 pm
Impressive growth Indeed,
- And now with the Telstra Partnership, they should be able to continue this crazy growth rate with the upcoming Australian financial year-end.
Word of mouth is really taking off – delighted customers going out of their way to recommend Xero to others.
A quick search on Twitter confirms this
http://search.twitter.com/search?q=xero
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By RogerRamjet, July 15, 2009 @ 10:01 pm
Impressive growth Indeed?
Kind of depends on how much each customer is paying don’t you think? This company is still loosing money so me thinks maybe the customers are not paying enough?
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Kelvin Hartnall Reply:
July 18th, 2009 at 2:52 am
I expect Xero will continue to lose money as they aggressively take advantage of growth opportunities. They have raised enough additional capital to allow them to pursue growth for the next few years. Assuming they grab a significant amount of market share from the incumbents, they could be very profitable in the future.
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By Share Investor, July 23, 2009 @ 1:49 am
At what customer level does profit kick in Kelvin?
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Kelvin Hartnall Reply:
July 23rd, 2009 at 11:31 pm
There is a good article in the National Business Review. They currently have exceeded 10,000 paying customers and break-even has moved up to 30,000 customers due to the increased investments to grow the business. Xero are aggressively pursuing growth options and increasing head count in New Zealand as well as their overseas markets.
It is worth noting that as is common with software businesses, their growth is currently exponential and variable costs are minimal. So I predict we will see them coast past 30,000 customers in the next 18 months. I am personally not too concerned about accounting profits, and am pleased to see them focusing on growth options with positive NPV.
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