Annual Meeting 2011

Annual Meeting day at Xero is one of our favorite days as a company.  We get to host our shareholders, share with them how our business is going and present plans for the next year.

We were delighted with another large turnout and it was great to hear from Xero Directors and business legends Craig Winkler and Sam Morgan during the presentation.

You can download the Chairman’s Address and CEO Presentation at http://xero.com/investors

The key information disclosed at our Annual Meeting included:

• Total paying business customers now 45,000 – 25% growth in the 3 months since 31 March 2011.
• After tripling revenue to $9 million for the year to 31 March 2011, the current annualized revenue run rate is $15 million (as at 30 June 2011).
• The Company maintains a strong cash position to pursue its growth strategy.
• In 2009 Xero provided market guidance that the Company would break-even in 2011. Given the size of the opportunities available to the Company, the Board is pursuing a growth agenda. This is a not a change to the Company’s strategy as it allows the Board the flexibility to pursue options that will add shareholder value without being constrained by short-term profit guidance.
• Xero has signed an agreement to acquire Australian online payroll provider Paycycle.

Other announcements made at the Annual Meeting

• Xero has appointed a Managing Director for its US operation – starting in October.
• Xero’s investment in Workflowmax in September has resulted in the successful development of an online tax module.
• Xero announces a partnership with New Zealand Post to improve small business productivity using digital postal services. Post will announce more about this initiative in a few weeks.

It’s very satisfying for our team to be able to demonstrate to shareholders that a lot of the start up risks in Xero have been reduced and that our substantial investment to get the foundations right are undoubtedly paying off now.

To our valued shareholders – thank you so much for the opportunity to allow us to build a world class business.  We’re all very excited about where we’ll be in the next 12 months.