Share
- Release Date: 28/08/13 11:01
- Summary: GENERAL: XRO: Xero to withdraw personal product in November 2014
- Price Sensitive: No
- Download Document 2.72KB
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
