Xero Acknowledged as a Key HR Software Provider by APPS RUN THE WORLD in the HCM Top 500 Market Report

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Xero Strengths, Domain Expertise, and Key Differentiators

Xero's strength lies in its cloud-based accounting software, serving over 3 million subscribers globally. The recent introduction of Analytics Plus, an AI-powered forecasting suite, showcases Xero's commitment to harnessing technology for more advanced cash flow insights. The redesigned Starter plan, tailored for new businesses, reflects Xero's user-centric approach, removing limitations on bank reconciliation and increasing the invoice limit.

Xero Recent Developments

In March 2023, Xero announced its plans to retire the project management software WorkflowMax.

In 2021, Xero acquired Tickstar, which provides e-invoicing infrastructure and expertise to governments and businesses around the world. This acquisition will provide Xero with continued access to e-invoicing networks, while providing Tickstar with additional resources to service its existing customers and acquire new ones.

Xero launched Analytics Plus, AI-powered forecasting suite, which now includes more advanced insights about cash flow, through pattern matching and predictive algorithms

In recognition of the current challenges and opportunities some of the smallest businesses are facing right now, the company redesigned its Starter plan (or Early plan in the US), which is tailored for new businesses and sole traders. This includes removing the limits on bank reconciliation and increasing the invoice limit to 20 per month. That’s approximately one per business day. The new plan will include the same powerful features existing Xero Starter plan users enjoy every day, including Hubdoc for automated document collection and management.

Xero Projects has a new profitability dashboard that provides small businesses with an easier way to see and manage the profitability of each project. The dashboard shows the total profit margin, all work invoiced and costs associated with the project, and highlights any outstanding invoices.

Xero will also extend availability of its existing insights tools to all business edition customers to help them manage cash flow at crucial times. The short-term cash flow tool allows businesses to forecast their bank balance for the next 30 days based on their existing bills and invoices, while business snapshot gives accountants and bookkeepers high-level insights into critical business metrics at a glance.

Unveiling its next generation practice vision At Xero On Air, the company unveiled its next generation practice vision, a reimagining of the practice toolkit that gives accounts and bookkeepers a unified experience to onboard, collaborate and manage client work in the cloud.

Under this vision, Xero HQ will transform a powerful, purpose-built Customer Relationship Management system for accountants and bookkeepers that collects and integrates all relevant client information in one place, making it easier to find information and get client work done. We’re also bringing our tools into a single interface, removing the need for multiple logins.

In the short term, Xero releasing new features sooner that make it easier to win new clients through the Advisor Director, onboard clients with customised templates, sign documents and automatically synchronise data between Xero and Xero Practice Manager.

Xero Mergers and acquisitions (M&A) Activities

In March 2023, Xero had signed an agreement with tech-led business advisory firm, BlueRock, to take over the WorkflowMax brand.

In December 2021 - Xero acquired TaxCycle (the trading name of Trilogy Software Inc), a Canadian tax preparation software company for accountants and bookkeepers, to support Xero's strategy for growth in this strategically important market.

In August 2020, Xero acquired Waddle, a cloud-based invoice lending platform. Waddle helps connect small businesses to invoice finance, a form of secured lending that relies on a business’s unpaid invoices. The acquisition of Waddle is an important step in its strategy to grow Xero’s small business platform and to help its customers better manage cash flow and gain access to working capital as needed.

Waddle’s lending platform has the potential to enable a wide range of banks, fintech, and other lenders to better support small business financial needs.

In December 2018, Xero acquired two companies. The first company was Instafile, a tax filing and accounts production solution that extends Xero's existing connectivity to the UK's HMRC and Companies House and the second was Cicerone Limited.

In August 2018 Xero acquired Hubdoc, a data capture solution that helps accountants, bookkeepers, and small businesses to streamline administrative tasks such as financial document collection and data entry. Founded in 2011, Hubdoc is headquartered in Toronto, Canada, currently serving customers in the US, Canada, UK, and Australia. Hubdoc will continue to operate on a stand-alone basis within Xero, led by co-founders and co-CEOs Jamie McDonald and Jamie Shulman. Hubdoc has been a Xero ecosystem partner since 2014. Hubdoc automatically collects bank statements, bills, and receipts from more than 700 financial institutions, utilities, telecom providers, and suppliers, delivering streamlined data capture and seamless integration with accounting solutions such as Xero.

This data capture capability is a key element of Xero’s code-free accounting strategy, which enables small businesses and their advisors to focus on growing their businesses. Hubdoc will continue to be sold separately, and available to non-Xero customers, maintaining its current business model. Over the longer-term, customers can expect to see a deeper integration between Hubdoc and the Xero platform, servicing customers globally. Xero remains fully committed to its open ecosystem strategy and Xero customers will continue to have access to the full range of more than 700 apps that connect with Xero."

Xero Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Xero applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Xero and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Xero, customers.

Xero Key Cloud and HCM Applications

Xero,

Xero HCM and Cloud HCM Applications Revenues, $M:

Type/Year20222023YoY Growth, %
Total Revenues, $M Subscribe Subscribe Subscribe
HCM Applications Revenues, $M Subscribe Subscribe Subscribe

* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

Xero Revenue Breakdown by Type:

TypeLicenseServicesHardwareS&MSaaSPaaSIaaSOtherTotal
% of Total Revenues Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe 100%
Revenues, $M Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe

Xero Total and HCM Applications Revenues by Region:

Region% of Total Revenues2023 Total Revenues, $M2023 HCM Applications Revenues, $M
Americas Subscribe Subscribe Subscribe
EMEA Subscribe Subscribe Subscribe
APAC Subscribe Subscribe Subscribe
Total Subscribe Subscribe Subscribe

Xero Direct vs Indirect sales

RegionDirect SalesIndirect SalesTotal
Type % Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe

Xero Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Xero Customers


No. of Xero Customers: 3 million

No. of Xero HCM Applications Customers: 7000

No. of Xero Cloud HCM Customers: 3 million

No. of Xero Cloud HCM Subscribers: 3.95 Milion


Xero is used in over 180 countries by 3M paying subscribers and integrates with 800+ add-on apps and 200+ banks and financial services providers. Following strong subscriber growth over the past 12 months, Xero is small business cloud accounting software in Australia, New Zealand, and the United Kingdom, based on the number of subscriptions. They have also made good progress in the competitive United States market where the accounting industry is early in its migration to cloud technologies.

Xero Market Opportunities, M&A and Geo Expansions

Xero's opportunities lie in the potential for further U.S. expansion, especially with increasing government initiatives to digitize tax processes. The company's partnership with Shopify and its position as part of the Shopify Plus Certified App Program open new avenues for supporting global merchants. Xero's next-generation practice vision and constant feature enhancements position it as an innovator in cloud accounting.

Xero Risks and Challenges

Despite its impressive growth, Xero faces challenges, particularly in the competitive U.S. market. The company must navigate state-specific variations and continue to innovate to challenge established players like Intuit and Sage. Xero's battle against decades-old incumbents demonstrates its ongoing commitment to disrupting traditional accounting practices.

Xero Ecosystem, Partners, Resellers and SI

Xero's ecosystem, boasting over 1,000 third-party apps and 300+ connections to banks and financial partners, is a testament to its commitment to fostering innovation. Collaborations with global partners like DFK and the introduction of its app marketplace create a robust network. The strategic integration of Xero HQ as a unified CRM system enhances the user experience for accountants and bookkeepers.

Xero Cloud Platform (PaaS) and Infrastructure (IaaS) Details

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  • Xero Public Cloud and Infrastructure (IaaS)
  • Xero Platform (PaaS)
  • Xero Application Delivery
  • Xero Private Cloud and Data Centers

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.


Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).


For additional information on our methodologies, here's the link:

https://www.appsruntheworld.com/About Us
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