Xero’s FY 2023 financial results

▤ Summary

Having started my journey as Xero’s CEO in February this year, I’m pleased to share our strong FY23 operating results, and I’m deeply excited about our opportunity to help power the global small business economy. Our results demonstrate Xero’s resilience in a complex macroeconomic environment, our valuable customer proposition, our increasing efficiency, and commitment to even more disciplined, customer-focused growth. We grew FY23 operating revenue by 28% (25% in constant currency (CC)) to $1.4 billion, which contributed to a 45% increase in adjusted EBITDA compared to FY22 to $301.7 million. This was driven by double digit subscriber growth across all regions – as average monthly churn (0.90%) remained low and ARPU improved 10% (8% in CC). Performance highlights FY23 (All figures are in NZD and comparisons are made against FY22) • None Total available liquidity $1.1 billion, cash on hand, short-term deposits and undrawn committed debt facilities Our strong underlying operating result is underpinned by continued revenue momentum from both subscriber and ARPU growth.

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