November could be an interesting month for Xero Ltd (ASX: XRO) shares.
The accounting software company is due to release its half-year results on 12 November, giving investors another chance to see how its international expansion is progressing.
But I'm interested in owning Xero for much longer than the next reporting season.
Here are three reasons I'd be happy buying its shares.
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A business customers rely on
Running a small business involves plenty of financial administration, from sending invoices and paying staff to managing bills and preparing tax returns.
Xero makes these jobs easier by bringing them together in one platform. And once a business has become accustomed to using the software, changing to another provider can be a major inconvenience.
I think that puts Xero in a strong position to retain its customers, giving it a dependable source of revenue as it continues expanding.
The company finished FY26 with 4.92 million customers, having added more than half a million during the year. That's an impressive customer base, and I think there's an opportunity to generate considerably more revenue from it over time.
As Xero introduces new features and services, it can give existing customers more reasons to use its platform and potentially spend more.
For me, the combination of a growing customer base and opportunities to increase revenue from existing customers could support earnings growth for many years.
The US opportunity is taking shape
Xero has built strong positions in Australia and New Zealand, but the United States could become a much larger source of growth.
The acquisition of payments specialist Melio gives it a better way to compete there.
US businesses can now manage their accounting and pay suppliers directly through Xero, bringing two everyday financial tasks into one place.
That could help Xero attract new customers while generating payment revenue from existing ones.
And there's evidence of progress. The US added 58,000 customers in FY26, excluding those acquired through Melio, compared with 42,000 the year before.
Melio is a significant investment, and integrating the business will take time. But I think it could give Xero a much stronger offering in a market where it still has plenty of room to expand.
AI could make the software more valuable
I'm also encouraged by how Xero is putting artificial intelligence (AI) into its products.
Its JAX technology can help automate tasks such as matching bank transactions, reducing the time business owners and accountants spend on routine administration.
That's the kind of improvement I think customers will actually notice.
And the benefits could go beyond saving time. As Xero develops better tools for understanding cash flow and managing finances, businesses may have more reasons to use the platform for everyday decisions.
Management is already looking at ways to charge for additional AI capabilities.
There is competition, and new technology can change markets quickly. But I think Xero has an advantage in the financial information its customers already trust it to manage.
Foolish takeaway
I'll be interested to see what November's results reveal about Xero's progress in the US and its investment in new products.
But the bigger opportunity for me is how much more valuable its platform could become to small businesses over time.
I would be happy buying Xero shares in November and giving it the opportunity to develop over the years.
