Industry revenues:

• Software-as-a-Service (SaaS)

TOP 3 markets:

• Australia: approx. 45%
• New Zealand: approx. 25%
• United Kingdom: approx. 20%

Xero Limited generates the majority of its revenues from the Software-as-a-Service (SaaS) sector by offering cloud-based accounting software for small and medium-sized enterprises. The main markets in which Xero operates are Australia, New Zealand, and the United Kingdom. Australia is Xero's largest market, followed by New Zealand and the United Kingdom, which together account for the majority of the company's revenue. These markets benefit from a high acceptance of cloud technologies and a strong focus on digital transformation in accounting.

Production Sites: No physical production facilities

Xero Limited is a company that develops and offers cloud-based accounting software. As a software company, Xero does not produce physical products. The software development mainly takes place in offices and development centers located in various countries, including New Zealand, Australia, and the United Kingdom.

The software is delivered over the internet, eliminating the need for traditional production sites. Xero focuses on providing and enhancing its digital services through software development and IT infrastructure.

Revenue Growth: Estimated 18% (2025, based on trends until 2023)
Customer Growth: Estimated 20% annually (based on 2023 data)

Xero Limited pursues a strategy that is heavily focused on expanding into international markets and increasing its customer base. The company continuously invests in improving its cloud-based accounting software to enhance user-friendliness and functionality.

Another key focus is on integrating AI and machine learning to provide customers with advanced automation features. These technologies are intended to increase the efficiency of accounting processes and provide users with valuable insights into their financial data.

In addition, Xero is leveraging strategic partnerships and acquisitions to expand its product portfolio and enter new markets. These measures are aimed at accelerating growth and strengthening Xero's market position.

Main materials: Software licenses, IT infrastructure

Countries of origin: USA, China, India

Xero Limited is a company primarily active in the field of cloud-based accounting software. Therefore, it does not import physical raw materials in the traditional sense. Instead, it sources software licenses and IT infrastructure necessary for the operation and further development of its platform.

The USA is a significant partner for software technologies and licenses, while China and India are important sources for IT infrastructure and technical services. These countries provide access to advanced technologies and cost-effective IT solutions that are crucial for Xero to remain competitive.

Market share in Australia and New Zealand: Over 50% (2025, estimate)
Customer growth worldwide: 20% (2024)
R&D expenses: 15% of revenue (2024)

Xero Limited has a significant competitive advantage, especially in the markets of Australia and New Zealand, where the company holds more than half of the market share. This strong market position is supported by a continuous expansion of the customer base, which grew by 20% in 2024.

The company heavily invests in research and development, with approximately 15% of revenue being spent in this area. These investments enable Xero to offer innovative solutions and differentiate itself from the competition. Strong brand awareness and high customer satisfaction also contribute to their competitive advantage.

Institutional Investor Share: 65% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last quarter (estimated for 2025)

The institutional investor share in Xero Limited is estimated to be around 65%, indicating that a majority of the shares are held by large financial institutions. This may suggest the confidence of these investors in Xero's long-term growth strategy and market position.

There were no significant insider transactions in the last quarter, indicating that the company's management and directors have not made any significant changes to their holdings. This could be seen as a sign of stability and confidence in the current corporate strategy.

Market share of Xero Limited: Estimated 25% (2025)

Main competitors and their market share:

1. Intuit Inc. (QuickBooks) - 40%
2. Sage Group - 15%
3. FreshBooks - 10%
4. Wave Financial - 5%
5. Zoho Books - 3%

Moat of Xero Limited:

Xero Limited has a significant moat due to its strong presence in the cloud-based accounting sector, especially in Australia, New Zealand, and increasingly in the UK. Their advantage lies in the user-friendly platform tailored specifically to small and medium-sized businesses. The integration with a variety of third-party apps and continuous innovation in automation and user experience strengthen this moat.

In comparison, Intuit Inc. with QuickBooks has a stronger moat in the USA, due to a larger customer base and an established brand. Sage Group also has a solid moat, especially in Europe, due to a wide range of products and long-standing customer relationships.

While Xero leads in certain markets, competition remains intense. Xero's moat is strong in its core markets, but globally, Intuit with QuickBooks has a broader advantage due to its market leadership and brand recognition.

Revenue Growth: 23% (2024) Customer Growth: 18% (2024) Market Share in Australia and New Zealand: 45% (2024)

Xero Limited recorded strong revenue growth of 23% in 2024, attributed to its continuous expansion into international markets and the introduction of new features in their cloud-based accounting software. The company also achieved customer growth of 18%, reflecting the increasing demand for digital accounting solutions.

Xero's market share in Australia and New Zealand stands at 45%, highlighting its leading position in these markets. This dominance provides a solid foundation for further growth, especially in regions where the digitization of financial processes is still in its early stages.

Xero is heavily investing in research and development to further enhance its platform and integrate new technologies. These investments could lead to a stronger market position and higher margins in the long term. Given these factors, Xero Limited could present an attractive investment opportunity for investors who believe in the growth potential of cloud-based financial solutions.

Dividend payment: No dividend (as of 2025)

Xero Limited has traditionally not paid any dividends to its shareholders. Instead, the company has focused on reinvesting its profits into the growth and expansion of its business. This strategy is typical for technology companies that are in a growth phase and require capital for developing new products and entering new markets.

The reliability of dividend payments is therefore not relevant as Xero currently does not make any distributions. Investors who invest in Xero typically do so with the aim of benefiting from share price increases and the long-term growth potential of the company.