Did you see the opening? Came and went about 30 minutes ago.
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"H&R Block prepares one in every seven US tax returns" - That alliance HAS to be a big step up the ladder for Xero in the US.
Another test of 3100.. Are we seeing a reversal pattern?? Where will she close?? Two attempt theory??
See you at $60 per share??
OK. So.... have to be honest, pretty perplexing afternoon. Given recent good news I was expecting a bit more of a kick, especially after the promising start. Certainly did not see the lower close coming. Any theories?
Institutions already priced in a US sales partner of scale? Not unreasonable given Xero's strategy elsewhere and their recent stateside hires. Wonder how much significance the lower Q3 loss really has in the big picture given some serious money will need to be spent the coming months to get customer attention in the US.
At the end of March 2014, XERO had 284,000 customers - growing at about 542 new customers a day since the end of January 2014. Assuming that rate of new customers hasn't changed, I estimate that XERO now has around 303,000 customers... So the magic 300,000 milestone has been reached..
I suspect though, the numbers are higher if the recent strategic alliances with KMPG and H&R Block are already helping to gain more traction in UK and US.
Anyone have any thoughts of how quickly and at what rate these alliances will help increase customer numbers?
The question is, when will the make a profit from these customers, currently the more customers the bigger the loss ! 81% increase in subscriptions, loss more than doubled.
Disc: No longer holding.
From April :
With monthly committed subscriptions growing to $7.8m, the recurring revenue model means that Xero commences its 2015 financial year strongly with $93m in annualised subscriptions (representing an 81% increase on the $51.5m reported at the same time last year).
The net loss after tax for the second half of the year ending 31 March 2014 is anticipated to be similar to that reported for the first half resulting in a full year loss of approximately $35m, compared to $14.4m last year. Xero has expanded its team to 758 employees and has $210m of cash to fund its growth
My guess is that it takes labor (sales staff-employees) to get new customers,but after that ,providing they stay,its pretty easy money in subscriptions.(There will always be running cost though)