It is high risk play above everything. You need to be on your toes whichever direction it goes. But as much as we are inclined to think that it must go up a lot or fold, stocks can go sideways too. Just look at ZNGA.
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Yeah I was thinking the announcement wasn't that good, although it's hard to judge the annual sales patterns for Xero when they only announce sales figures about 6 times per year.
It looks like they sell a lot more in Jan-Apr than at other times of the year and it also looks like sales depend on when the tax year falls in various countries.
The last figures they announced were for 30 Sept which was 371,000. That gives 7.8% growth in 71 days which projects to 47% annual growth. Not impressed by that but it's hard to draw a trend from a short period of time that may not be indicative of the full year.
it would be good if they gave regular quarterly numbers. That way we could model seasonally adjusted growth as some quarters should be better than others. I would expect the December quarter to be the worst (actually the 3 months to the end of November to be the worst) due to where year ends fall.
400k customers is an impressive milestone that's worth shouting about regardless of the timing, growth rates etc. Let's not get sucked in the negative sentiment and congratulate a NZ company that's making amazing progress towards a target that none of us would have dreamt possible a few years back.
I guess your viewpoint on XRO will be influenced by the level of your entry point into the stock - mine was at $6.20 and I was nervous then. I bought as a long term holder so my profit is still on paper - as are the losses for those who bought above $16. If you bought as a speculator then unfortunately you're going to have to learn the value of patience.
Well said Pierre. I got sucked in big time when it was at its very low 0.74 - 0.96 and unlucky not to have sold everything I had when it was at its zenith. Having tasted the joy of what you can gain with this stock, I don't even worry now whether less thatn 80% gain on customers is a bad thing. Come for the ride guys as this stock will really go places. With its IPO looming and that Fedelity Fund buying, how can you lose? :D:t_up:
I doubt they will are planning to be profitable before they hit 1 million customers. After that, I think it's likely. So I'd be saying that their first profit should be FY2017, although it could even be H1 2017.
That's still 2½ years away (with 1 million customers happening within two years from today). A lot can happen in that time.
Most of their money at the moment is going on acquiring customers, at some point income should exceed that. Although maybe they will take the Amazon route and plough any potential profit into further growth.