kiwiSaaS Community’s Post

25% YoY growth. 1% churn. A Rule of 40 score over 40%. Xero isn't just growing - it's setting a standard for SaaS excellence. 💡 What's their secret? It's not just the numbers - it's their GTM execution. Under CEO Sukhinder Singh Cassidy's leadership, Xero has demonstrated the power of aligning pricing decisions with customer value. Meanwhile, CFO Kirsty Godfrey-Billy has guided the company to a remarkable balance of growth and profitability, delivering Free Cash Flow margins of 21% while maintaining disciplined cost management. But this success isn't just financial - it's deeply customer-driven. 📊 25% YoY revenue growth, driven by strategic price increases They didn't just raise prices - they leaned on a laser focus on customer Jobs To Be Done (JTBD). Customers continued to realise value, keeping churn at an industry leading 1%! 🔑 Why this matters for SaaS Executives: 1️⃣ JTBD-Focused Growth Pricing increases only work when customers clearly realise the value of your product. Xero's pricing strategy was grounded in understanding and delivering on their customer's most important jobs - like simplifying compliance, automating workflows, and unlocking real-time insights. 2️⃣ Operational Efficiency Matters With a Rule of 40 score at 44%, Xero is proof that balancing growth with profitability is possible. SaaS leaders must aim for both, not one at the expense of the other. 3️⃣ The Leadership Mindset This success reflects clarity and alignment from the top. CEOs and CFOs who combine strategic growth with customer-centric execution inspire organisational focus and deliver results. 🚀 The Takeaway? Growth isn't just about acquisition It's about delivering undeniable value, retaining customers, and driving efficient expansion. There are only 37 days until 2025: How are you aligning your GTM execution to maximise efficiency and customer growth? #gotomarket #arr #saas

🚨 Growth Through Ecosystem Development: A Lesson from #Xerocon Nashville🚨 💡 At Xerocon Nashville I had a lightbulb moment about the powerful effect of ecosystem led-growth. Below, I’ll break down Xero’s approach to conquering the North American market, and the lessons we can all learn from it: ⚡ Product Enhancements Xero’s product development is laser-focused on increasing value for North American accounting software users. Key initiatives include: 1️⃣ Increasing the number of its direct feeds in the US and Canada from 20 to over 700 in the past 18 months. 2️⃣ Localized charts of accounts optimized for business types (i.e C-Corp, S-Corp, LLC, etc.)  3️⃣ An embedded bill payment solution (beta version to be released soon), powered by BILL, simplifies paying vendors and improves cash flow management with the ability to quickly and easily pay within the Xero experience 4️⃣ In partnership with Stripe, Xero is enabling more new payment types including direct bank transfers and ‘buy now, pay later’ options, in addition to existing options for credit cards, debit cards, and digital wallet. 🤝 Channel Partnerships Xero excels at building strong relationships with Value-Added Resellers (VARs), Managed Service Providers (MSPs), and Systems Integrators (SIs) across territories like Australia and the UK. The key? Adding value through both product features and meaningful thought leadership. When you win over a channel partner, they can bring you 100+ customers through their network, multiplying the impact of your efforts. 💹 Marketplace & Tech Partnerships Xero’s ecosystem extends to independent software vendors like Avalara, Gusto Ramp , Cin7, and more. These integrations significantly enhance Xero’s value proposition, creating cross-selling opportunities that benefit every partner’s client base. This approach transforms Xero from an accounting solution into a comprehensive platform that solves multiple business challenges, amplifying the value to the end consumer. 🥡 The Takeaway Xero is investing in the right areas to scale its ecosystem in North America, and their strategy holds valuable lessons for all business leaders. Watch this space - I bet we see them taking a large share of the market in the coming years. #Ecosystem #Xero #Fiskal

🌟 𝗦𝗲𝗹𝗲𝗰𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗥𝗶𝗴𝗵𝘁 𝗖𝗹𝗼𝘂𝗱 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗳𝗼𝗿 𝗬𝗼𝘂𝗿 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 🌟 In a world that’s moving faster than ever, the right cloud accounting software can make all the difference in keeping your business efficient and agile. Different platforms show different data regarding the market share. Here’s an overview of the current market share or popularity among top platforms: 𝗤𝘂𝗶𝗰𝗸𝗕𝗼𝗼𝗸𝘀 𝗢𝗻𝗹𝗶𝗻𝗲 (𝟰𝟬%): Industry leader, known for comprehensive features tailored to small and medium businesses. 𝗫𝗲𝗿𝗼 (𝟮𝟬%): Great for scalability and smooth integration with other tools. 𝗭𝗼𝗵𝗼 𝗕𝗼𝗼𝗸𝘀 (𝟭𝟬%): Affordable and user-friendly, especially for smaller businesses. 𝗦𝗮𝗴𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗖𝗹𝗼𝘂𝗱 (𝟭𝟬%): Trusted by larger businesses for robust functionalities. 𝗪𝗮𝘃𝗲 𝗔𝗽𝗽𝘀 (𝟭𝟬%): Ideal for freelancers and small businesses, with free core features. 𝗙𝗿𝗲𝘀𝗵𝗕𝗼𝗼𝗸𝘀 (𝟱%): Popular with freelancers and self-employed professionals. 𝗢𝘁𝗵𝗲𝗿 (𝟱%): Various niche providers. At Finex Bookkeeping ( https://lnkd.in/e4wT_iqe ), we not only handle your bookkeeping needs but also help guide you in choosing the platform best suited to your business. Let's connect to explore how the right choice of software can streamline your operations, keep your finances transparent, and boost your business growth! 📊 #bookkeeping #cloudaccounting #businessowners #QuickBooks #Xero #FinexBookkeeping #businessgrowth #finances #smallbusiness #waveapps

SaaS finance leaders, this one's for you! When scaling your business, outdated finance systems are the brakes you can’t afford. Andy Jackson, iplicit's Finance Controller, shares his experience with Sage 50 and Xero, highlighting the limits of entry-level tools for growing SaaS companies. Now, he reveals why the right finance software is a game-changer for scaling success. Read Andy's insights https://lnkd.in/dTsMsqkU #SaaS #FinanceAutomation #GrowthTools #ScalingSaaS #appadvisoryplus

I'm excited to introduce you to My Cloud Dashboard, a comprehensive platform designed to streamline operations for businesses offering on-site services. Whether you're managing customer relationships, scheduling services, or overseeing payment processing, our all-in-one solution is built to enhance your efficiency and growth. With My Cloud Dashboard, you’ll benefit from: ▪️Easy-to-use CRM: Track customer interactions, manage orders, and optimize service delivery all in one place. ▪️Automated Service Scheduling: Create bespoke schedules that ensure your customers are always serviced on time, every time. ▪️Integration with Accounting Software: Seamlessly sync with QuickBooks and Xero to manage payments, invoices, and VAT returns. ▪️Real-time Reporting: Get instant insights into your sales, service status, and cash flow, all from a single dashboard. ▪️Online Payments: No more chasing payments – our platform makes it easy for customers to pay for services online. We’re confident that our solution can save you valuable time, reduce operational costs, and allow you to focus on growing your business. If you’re interested in seeing how My Cloud Dashboard can work for your business, I’d love to set up a time for a quick demo. https://lnkd.in/eZKbCqZ4

SmartHR, one of Japan’s unicorns, recently crossed the ¥15b/$100m (USD) ARR mark. This got me thinking about when other companies (and their global comps) reached the 100m USD mark. SmartHR/Workday: SmartHR was founded in 2013 and crossed the $100m ARR mark in 2024. Workday was founded in 2005 and crossed the $100m ARR mark in 2012. MoneyForward/Freee/Xero: MoneyForward and Freee both started in 2012 and crossed the $100m ARR mark in 2022. Xero started in 2006 and crossed the $100m ARR mark in 2015. CloudSign/DocuSign: CloudSign launched in 2015 as a service offered by Bengo4.com. Its ARR is $37.1m but is growing at 49.7%. DocuSign started in 2003 and crossed $100m ARR in 2015. Crossing the $100m ARR mark is an amazing milestone for any company. Though the sample size is small, there seems to be a lag in Japanese software, and are now achieving this milestone. If these companies and their global comps are any indicator, the Japanese software market has a ton of room to grow! 

𝐖𝐡𝐚𝐭 𝐌𝐚𝐤𝐞𝐬 𝐗𝐞𝐫𝐨 𝐒𝐩𝐞𝐜𝐢𝐚𝐥? In today's fast-paced business world, efficient #financial management is crucial for success. #Xero stands out as a game-changing accounting solution that's revolutionising how businesses handle their finances. But what truly makes Xero special? Xero is a cutting-edge #accounting #software that streamlines financial management for businesses in the digital age. Unlike traditional methods that relied on pen and paper, Xero operates entirely online, allowing businesses to access their financial data from anywhere, at any time. With Xero, businesses no longer have to worry about losing important documents or storing bulky ledgers. The software seamlessly integrates with modern technologies, making accounting more efficient and accessible than ever before. By leveraging cloud computing, Xero eliminates the need for complicated software installations and licensing fees. Users simply need an internet connection and a compatible device to access the powerful yet user-friendly platform. What truly sets Xero apart is its commitment to innovation, user-friendly interface, and ability to adapt to the evolving needs of modern businesses. Whether you're a small startup or a growing enterprise, Xero provides the tools and flexibility to manage your finances with ease and precision. Have you experienced the Xero difference? Share your thoughts on how cloud-based accounting solutions are transforming business operations. - - - #Xero #CloudAccounting #FinancialManagement #BusinessInnovation

The sector has a turnover of £87.9bn currently, and has received £42.7bn of investment, growing at 25.9% per year. Here is what the experts think 2025 has in store for SaaS 🖥️ #expert #predictions #saas #software Glenn Chisholm, Rodolphe Malaguti, Demed L’Her, Nicholas Wegman, Roderik (Rik) Viergever, Ivan Nikkhoo, Karan Bhakuni, Rupert Bedell, Tom Zsomborgi, Dave Holloway 👏 Read more 👇 https://lnkd.in/dPh_43hg

SaaS founders: (deferred) revenue booking, are you doing it right? 💵   Clearly accounting principles are not on the top of every founder's priority list.   But if you want insight into MRR/ARR/gross margin/CLV/CAC and most other key SaaS metrics, you will need to know how prepaid subscriptions translate into actual and deferred revenue.   The relevant accounting principle here is that you should: 𝗥𝗲𝗰𝗼𝗴𝗻𝗶𝘀𝗲 revenue when it is 𝗲𝗮𝗿𝗻𝗲𝗱. 💡   How does this work in practice?   Let's take an example:   📈 Your SaaS business sells yearly subscriptions.   💰 Payment terms are 100% upfront (let's say EUR 12k).   So for EUR 12k, a client can use your SaaS product for 12 months.   How to account for this revenue?   What you shouldn't do: ❌ Account for EUR 12k in the month the subscription went live and you received your full payment.   What you should do: ✅ Account for EUR 1k in month 1 (EUR 12k divided by 12 months), EUR 1k in month 2, all the way up to reaching cumulative EUR 12k in revenue after 12 months.   Looking at month one: - You have sold a EUR 12k yearly subscription, but - Only recognise EUR 1k of that in revenue in your P&L (profit and loss statement). - The remaining EUR 11k goes into a balance sheet liability called "deferred revenue" (also called "unearned revenue").   So after month one, you will have: ➡️ Revenue: EUR 1k ➡️ Deferred revenue: EUR 11k   After month two, you will get plus EUR 1k in revenue, and minus EUR 1k in deferred revenue. So: ➡️ Revenue: EUR 1k + EUR 1k = EUR 2k ➡️ Deferred revenue: EUR 11k - EUR 1k = EUR 10k   All the way up to the end of month twelve, where your revenue will be EUR 12k, and your deferred revenue went down to zero.   ❌ To what revenue does this NOT apply? Implementation/consultancy fees (assuming they occur within one month) Hardware sales Other one-off revenues   This is also why it's a good idea to split subscription revenues from other sources of revenue in your P&L (such as services, hardware, etc.).   If you are interested in a more in-depth review, I highly recommend the article on this topic by Ben Murray (also called the SaaS CFO). I'll add the link in the comments below (and consider following him, he offers a lot of high quality content and templates).   Accounting for deferred revenue is step one in your journey to getting a proper SaaS P&L.   Even if you don't have this implemented in your actual book keeping (or balance sheets scare you 👻), I recommend tracking at least your subscription revenue in the "correct" way somewhere in your internal management reporting/KPI sheet/or such.   Because, even if you might not care much for it: your (potential) investors (as well as exit candidates) will.   #startups #saas #recurringrevenue #venturecapital #fundraising #vc #founders #accounting #finance

Businesses today face constant challenges, from managing projects to tracking finances, and choosing the right software tools can make all the difference. At Mint Dynamics, I offer tailored solutions that help businesses select and implement cloud software like Xero, BQE Core, and Projectworks, specifically designed to meet their unique needs. My process goes beyond just choosing software—it's about selecting the tools that align with your business goals. Here's what you can expect when you work with me: ✅ Tailored solutions to streamline your workflow and save time ✅ Thorough analysis of the software to find the best fit for your needs ✅ Seamless integration, reducing downtime and disruption ✅ Ongoing support to ensure the software is used effectively ✅ Proven strategies that align with your long-term business objectives When your software is working efficiently, so is your business. Let's talk about how I can help you get more out of your cloud tools and future-proof your business. #CloudSoftware #BusinessEfficiency #Xero #BQECore #BusinessConsulting #ProjectManagement #AustraliaBusiness #TechIntegration #SoftwareOptimisation #EfficiencyTools