Such a move has limited potential in tiny markets that Xero operates in and carries significant risks.
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How much is a promise they could be profitable worth, maybe nothing, maybe 2.5 billion(!!) maybe more(!!!).
Really??
So they have a ton of cash etc. That is included in the NTA which they are currently burning at more than 25% per annum.
Maybe they can raise more capital, but any investor is going to want to know that they will get a return on that investment, and so far they have given no indication that that will ever happen.
From the recent NZ herald live chat with Rod:
"We could slow down and do it next year. We could delay it 5 years. As this year develops we can can decide. The role of the board and I is to maximise long term value for shareholders."
"But we of course would love to get to profitability as soon as we can, but not at the expense of growth. We did our biggest hiring spurt last year, so the loss widened. This year we can slow that down and with our revenue growth the cost and revenue lines will cross over. With 1/4 of Billion of cash we have plenty of time but personally we think about that every day. Will be quite a party."
Patience is a virtue.
You have to see this latest integration of Alavara (sales tax software) to just comprehend how complicated doing business in the US of A.
https://www.youtube.com/watch?v=aSPf...ature=youtu.be
But yes, it may even take them another 36 months to crack that territory but I am willing to wait :p
This has become a bit of a haters' forum, which I suppose is fair enough as the Internet is wonderfully democratic. Anyway, just thought I'd post this- I've followed it for over a year now and it does tend to mirror their subscription growth. Not particularly scientific, and doesn't speak to profit/revenue/NTA etc and all those other issues that are being, rightly, debated here- but posting it for a little bit of balance...
http://www.google.com/trends/explore...j7z&cmpt=q&tz=