Xero has its First Year of Profits but Braces for the COVID-19 Impact Across the Globe

Xero has its First Year of Profits but Braces for the COVID-19 Impact Across the Globe

This IDC Market Note reviews the strategy and financial performance of Xero, a cloud accounting software company. This financial year was the first in which the accounting software firm recorded profits and saw continuous growth in its original markets of Australia and New Zealand, coupled with sustained growth in the U.K., U.S., and rest of the world. However, IDC expects Xero — like other SMB-focused financial accounting providers — will have to face challenges related to the COVID-19 pandemic, which is severely impacting the IT spending of SMBs. At a time of uncertainty, Xero is faced with the challenge of maintaining growth and seeking new avenues for expansion.

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