- Release Date: 28/08/13 11:01
- Summary: GENERAL: XRO: Xero to withdraw personal product in November 2014
- Price Sensitive: No
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XRO 28/08/2013 09:01 GENERAL REL: 0901 HRS Xero Limited GENERAL: XRO: Xero to withdraw personal product in November 2014 Xero to withdraw personal product in November 2014 28 August 2013 Xero Limited (XRO) announces that development of its personal financial management (PFM) tool Xero Personal will be wound down and the service shut down on 30 November 2014. The company is focusing its development resources on its larger and faster growing small business and accountant software products and services. Xero is also now working with financial advisors in Australia to assist them in managing wealth management clients through use of Xero's Cashbook product. "A few years ago, independent Personal Financial Management looked like a complementary space to accounting, especially for small business owners," says CEO Rod Drury. "While a valuable service with many fans, we haven't seen a mass market of consumers willing to pay for PFM products. The market just hasn't taken off for any players and relies on advertising-based models that aren't our business." "While Xero Personal has covered its costs from the start, the company is ensuring its development staff are focused on the most valuable parts of the business. Xero has evolved to a platform that connects small business owners and their accountants, with greater investment in accountant tools. Continuing to invest in a lower margin and lower growth segment no longer makes sense." Existing Xero Personal users as at 30 September 2013 will be able to continue to use the service after their annual expiry date at no additional charge until it is shut down. In coming weeks information will be provided to assist customers in exporting their data and considering alternatives. Xero will incur a write down of NZ$0.7 million relating to Xero Personal. This represents the written down value of the development investment in Xero Personal over the last 4 years. Revenue from Xero Personal was $0.6 million out of total operating revenues of NZ$39 million in the year ending 31 March 2013. Discontinuing this service will not impact existing guidance of full year operating revenue growth over 80%. The company notes that users of Xero Personal (now numbering 12,000) have never been included in the company's customer count, due to it not being a business product. For more information contact: Rod Drury Xero CEO [email protected] +64 27 6000 007 About Xero Xero provides beautiful, easy to use online accounting software for small businesses and their advisors. As at 1 August 2013 the company had 193,000 paying business customers in more than 100 countries around the world. The company is listed on the NZX and ASX. See www.xero.com End CA:00240284 For:XRO Type:GENERAL Time:2013-08-28 09:01:32
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