I'll be the ever cheerful pessimist to say that your estimate on XRO is short by another couple of thousands more :) As for Intuit and/or MYOB, I'll be happy for them to get any numbers as long as XRO is moving more forward than them.
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Interesting article in the NBR from Lance Wiggs, using Xero as an example of impact of NZD fall.
"My take is that the fall from the end of May to today would increase their estimated monthly revenue by about 4.3%."
and
"Obviously this is only for revenue received after the exchange rate changes, so don’t expect any surprises when Xero announces their September revenue, although their Annualised Run Rate might have a boost."
He also calculates the effect on Xero of the 'Goldilocks' rate of .65. Nice ...
http://www.nbr.co.nz/article/bonus-g...ters-th-163236
And what is the net effect?
Let's look at last quarter's result:
Receipts from customers: 23.4m
Receipts from overseas customers:15m (~65% of Xero customers are overseas)
Expenses: 45m
The net effect is only positive if more than two thirds of all expenses are incurred here. My gut feeling is that it makes little difference.
From FN Arena:
"Credit Suisse rates XRO as Outperform (1) - Credit Suisse is adjusting near-term estimates. The main change is a downgrade to US customer estimates, reflecting recent news flow and the lack of traction that is apparent to date.
The broker expects the October customer update to be a key catalyst while a potential US listing in 2015 could harness attention over the coming year. An Outperform rating and NZ$43.00 target are maintained.
Current Price is $19.22. Target price not assessed.
The company's fiscal year ends in March. Credit Suisse forecasts a full year FY15 dividend of 0.00 cents and EPS of minus 46.37 cents .
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.45."
Results out overnight (unsure why they released it US time?)
https://www.xero.com/media/3952543/x...-85percent.pdf
Pretty impressive, though I have no idea how the market will take it. If you consider that NZ is maturing and diminishing as a percentage of overall numbers, as Aust, UK and US pick up, the growth could really continue to be spectacular for some years to come. And some pretty honest commentary about what's working and what's not in the US- I like that they don't try and gloss over the issues.