Full year 2021 results out. Watching the market with interest today given the carnage in the US.
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Full year 2021 results out. Watching the market with interest today given the carnage in the US.
Well yes, revenue and earnings are up - its now a royal 13 cents per share, which leads to a PE of 1000! Wow! Customers keep growing (well, the customers probably as well, but I meant to point to customer numbers), but it sort of feels that growth rates are slowly dropping. Not sure I like that given that they had Covid tail wind.
Given that this is now already the second year with a positive result (i.e. they made money vs losing some) I'd expect that markets might slowly start to re-price the share according to its money making abilities. Lets see, how this will work out.
Great share, but in my view (as many other great companies) too dear at the current moment ...
I don't know XRO very well but have been interested in perhaps getting in there. However on first view this report makes for very sober reading. I can't see anything but a painful correction in share price.
Ouch! Down about 10% today.
I didn't actually think it was a particularly bad announcement although I haven't read through that carefully.
Growth has been slowing for a while and I thought that with covid that growth might have come to a complete halt.
Not that we have to post it but just like old postings, it's nice to know that XRO is still improving https://www.xero.com/blog/2021/08/pe...gn=personaltax
Looks like XRO had a bad H1 FY22.
- HY REVENUE FROM ORDINARY ACTIVITIES NZ$505.7 MILLION, UP 23%
- HY NET LOSS NZ$5.9 MILLION VERSUS PROFIT NZ$34.5 MILLION
Clare Capital thinks a great result
Some big @Xero numbers out today: annualised monthly recurring revenue (AMRR) at NZ$1.1BN (⬆️29%), 3M subscribers (⬆️23%), 87% gross margins. Congrats team - those are some serious achievements. And the share price is down 5% today. Markets are tough and expectations are sky-high
Xero noted its operating expenses, including the costs of integrating acquisitions, increased as a percentage of revenue to 83.4%
Increasing reinvestment
"Greater clarity and renewed confidence in the economic environment over the past 12 months drove
increased reinvestment into customer growth opportunities," it said.
"This included increased spend on subscriber addition initiatives andinnovative brand awareness campaigns in a number of markets."
Product design and development costs increased 51% to $166.8m, about 33% ofoperating revenue and at a similar level to the second half of the previousyear.