Xro - xero

**Peitro** · 23-07-2009, 10:50 AM

10,000 Customers - Hockey stick growth in full flight!

**Stranger_Danger** · 23-07-2009, 11:13 AM

10,000 customers is awesome. That should be 500k in revenue per month.

Watch the numbers closely. If they are for real the actual cash coming through the door per month is about to take off.

**Peitro** · 23-07-2009, 11:22 AM

Originally Posted by Stranger_Danger

10,000 customers is awesome. That should be 500k in revenue per month.

Watch the numbers closely. If they are for real the actual cash coming through the door per month is about to take off.

They stated in their Annual report that their Average revenue per Customer was $33 or something to that effect.

**Stranger_Danger** · 23-07-2009, 11:32 AM

But that is substantially less than their minimum price, and they stated that they only count paying customers?

**Peitro** · 23-07-2009, 11:36 AM

"Xero currently has in excess of 7,500 customers who, in aggregate, are committed to approximately $250,000
of monthly revenues. Revenue collection and recognition is subject to timings of customer promotional
periods."

Lower than $50 Month due to:

-Annual Payment discount
-Not for profit discounted rate
-Xero Accountants edition (lower functionality available through accounting firms only - at a discount, but usually bundled with accounting services)
-Telecom, Telstra & BT taking a cut?

**Peitro** · 23-07-2009, 03:16 PM

"10,000 paying customers is a ten-fold increase in our customer numbers since March 2008 and, in aggregate, these 10,000 customers generate approximately $330,000 of committed monthly revenues"

Ha Share buy-back announcement today - so soon after the SPP

**Jess9** · 23-07-2009, 07:49 PM

Market likes : ) Expect some more favorable price action as XRO forward momentum pick-ups further and traders again enter.

**buns** · 24-07-2009, 01:35 PM

I expected XRO to race away a bit more than this on the 10k news, and the other positive signs out there. We were at 1.42 before the good news. So that raises the question - is XRO still at value to an investor?

To tell the truth I have no idea how to value XRO - does anyone?

The stock has so many unknowns, all good, but how good?. In the end it does come down how you value the benefits of these future possibility’s.

I'm expecting news from XRO is going to slow down a tad and really enter a BAU phase. As;
- Telco contracts in place
- Major system upgrades complete (multi currency)
- UK office set up
- FY09 and AGM behind us

The announcement on treating the USA with care, to me is a huge hint they are a long way away from pushing into that market. This obviously means they feel very comfortable easily making that break even in good time without the US. Another nice display of confidence.

In the medium term, I'm thinking about 3 things:
- Continuing to bulk up XRO accounting functionality
- Looking into adding value added services integration, i.e Web 2.0 Payroll apps. To lift that $33 ARPU.
- A stronger force in Aussie. Road shows have just completed, hopefully these have spread the word as they have very small market share over there.

Defiantly a slow down in advancements/news though. So a decent time to value XRO - anyone?

**MPC** · 24-07-2009, 07:25 PM

My thoughts as well Buns. I was thinking today what the company would be worth once they have 20000 or 100000 customers. 10000 is a drop in the ocean but a nice start.

I am happy with progress and with the company in general. Nice to see positive articles in the media but words of caution from the company itself is also reassuring, they know what is needed and how hard it will be to become a big player. Interesting future.

Regards,
MPC