CORRECT: Xero appoints heavy-hitter, Andy Lark, for US push 9 Oct 2014
Pattrick Smellie
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
CORRECT: Xero appoints heavy-hitter, Andy Lark, to push US sales
(CORRECTS and updates Andy Lark's current employment in sixth par)
Oct. 9 (BusinessDesk) - Cloud accounting software firm Xero has snared Andy Lark, an expatriate New Zealander with a heavy-hitting global career, to be its new chief marketing officer as it moves to strengthen its push into the vital US market and confirms it expects a net loss for the six months to Sept. 30 of $25 million and 80 percent subscription revenue growth this financial year.
Lark's appointment accompanied Xero's latest trading update, in which it records further strong growth in subscription revenues, up 85 percent to $52 million for the half year to Sept. 30 and monthly committed subscriptions at $11 million, meaning annualised revenues are now running at $132.3 million, up 87 percent on a year ago.
Both announcements come three weeks after Xero announced the surprise resignation of the recently appointed chief executive for its US operation, Peter Karpas, and a string of broker reports questioning Xero's ability to crack the US market, where it is seeking scale ahead of profitability against incumbent accounting software provider Intuit. A presentation published to the NZX this morning highlights "dissatisfaction with execution and leadership" in the US as one of four areas that "need work" for Xero to succeed in the US market.
The latest update shows Xero has $171 million still in kitty to invest in building its customer base under a strategy that expects no profits until sufficient global scale is achieved.
Xero shares have fallen from a record high of $44.98 in March to a closing price of $21.16 a share yesterday.
Currently head of Group Lark, his Sydney-based consultancy, Lark was previously chief marketing and online officer at the Commonwealth Bank of Australia and is a major score for Xero. He takes up his new role next month, has been a member of Xero's advisory board since the company was established seven years ago and is a member of the Fronde and SLI Systems boards.
Auckland-born, Lark is also a former global marketing executive for Dell, the online computer sales giant, where he had responsibility for the Dell.com website, was chief marketing officer before that at LogLogic, which at the time was a Silicon Valley start-up, and before that was head of global marketing and communications for Sun Microsystems.
He will "lead Xero’s global marketing strategy and further drive growth in the US," the company said.
“As we continue to accelerate our growth globally, adding executives of Andy’s calibre -- with deep experience of the US market -- demonstrates our ability to attract world-class talent and commitment to bringing Xero to more small businesses than any other platform on Earth,” said chief executive Rod Drury.
Meanwhile, today's update shows Australia is Xero's largest market by both customers and revenue, with 100 percent growth in customers to 158,000 over the year to Sept. 30, and annualised subscription revenues of $63.9 million, with New Zealand second at 119,000 customers, up 38 percent over the year, and annualised subscription revenues of $34 million, an increase of 42 percent over the year.
The scale of the company's challenge in the US is clear. While it experienced 116 percent growth in annualised revenues, they total $8.2 million and actual revenues in the six months to Sept. 30 total $3 million. Customer growth was 120 percent over the year, to total 22,000 the company's total global total of 371,000 customers.
Of its 13,857 partner firms - essentially accounting firms that provide a channel to market for Xero - 1,663 are in the US, an increase of 127 percent for the September year, while total global growth in partners was 57 percent, for a total of 13,857, 6,400 of whom are in Australia, 2,818 in New Zealand, and 2,467 in the UK, where Xero has entered a strategic partnership with big four accounting firm KPMG. Annualised revenues from the UK are now running at $20.9 million, up 105 percent on a year earlier.
In the US, Xero says the transition to cloud-based services "will play out over several years", with most American accounting firms focussing on compliance and are "only at the beginning of the transition to the cloud and proactive advisory services."
As well as needing to work on execution and leadership, the company identifies "some product gaps, speed or refining and tuning sales model, and recruitment" in the San Francisco Bay area as challenges in the US market.
More executive time in the US is one of the ways Xero expects to do better, with Drury spending two of every five weeks in the US, its chief financial officer Ross Jenkins now based there, and Lark's appointment a key element because of his 15 years' experience in US markets.
There was no mention of a replacement for Karpas in the material.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more