Not considering at this stage. I want to see some traction in the US/UK first as without that, they are not worth $1B.
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they can go Obama lot longer if they get traction in the US. Those that are buying in now are betting that they will. Xero is also betting they will which is why their staff numbers (and cost base and break even point) keep increasing.
Note: following RYM comment they wanted to be #1 on the NZX, Drury posted theat they aren't the only ones!
yikes, what happened?! Down 23c - is there a report I missed?
The only thing I noticed was this: http://www.afr.com/p/technology/reck...4oiaIDtlbaV1rM
IMO it doesn't seem like terribad news really... Aren't they likely to draw more from MYOB than Xero? Why change twice in quick succession...
So they are about to launch an untested product. Aimed at micro businesses but with hundreds of different options depending on functionality requirements. Sounds like a nightmare. Xero is pretty cheap as it is (about $600 a year) so they are going to add increased complexity to save businesses a couple of hundred dollars a year?
Only a 'small' jump on openning and still under $7. I haven't done any analysis but the announcement didn't look overwhelming but just a steady increase (not exponential). Having said that the quarter to December is a relatively non event as most companies would update after year end so The quarter to march is important for the US, the quarter to June for NZ and the quarter to Sept for Australia having default year ends respectively of December, March and June.
Since US is where this company needs to be going to hit the target of 1m customers, teh next quarters result will be the interesting one to see if they got any traction out of all the US marketing they did with accounting firms late last year.
Interesting piece on Ross Jenkins in CFO magazine (yes winer reads such stuff) and how he sees his role at XRO ...seems to have a fair degree of input into strategy ...seems like Rod wanted more than just a numbers man but to overseer strategy and investor relations
One quote " There's a balance to achieve appropriate governance and simply arse covering and we are continually testing that balance"
Interesting. Maybe it is a hard job managing total shareholder expectations / return when your market cap is 20 times sales
The standard CFO just reports the numbers and sets budget at 10% above last year
For Xero their budgets must be pie in the sky stuff but measuring and figuring out what works and what doesn't, quickly would be very important.