Tom Pullar-Strecker writes: Xero will write down $700,000 after deciding to axe a software tool designed to help people manage their personal finances.
The company said 12,000 people used its personal financial management tool, Xero Personal, but it had not "taken off" as the company had hoped.
Those customers had not been included in Xero's customer tally of businesses using its cloud-based accounting product, which stood at 193,000 at the start of the month.
"A few years ago, independent personal financial management looked like a complementary space to accounting, especially for small-business owners," chief executive Rod Drury said.
"While a valuable service with many fans, we haven't seen a mass market of consumers willing to pay for PFM products. The market just hasn't taken off for any players and relies on advertising-based models that aren't our business."
Xero would "wind down" development work on Xero Personal and axe the service on November 30 next year, he said.
Xero Personal contributed $600,000 towards Xero's total annual revenues of $39 million in the year to March.
Withdrawing the product would not affect the company's forecast of posting at least 80 per cent revenue growth this year, it said.
Existing Xero Personal users would be able to continue to use the service after their annual expiry date at no additional charge until it was shut down.
"In coming weeks, information will be provided to assist customers in exporting their data and considering alternatives," Xero said.
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