Certainly sharemarket action today. Looking like sp might hit AUD60.
And $60 has been reached. Interesting day. Market certainly likes the results. The same sort of acquisition numbers over the next financial year and we are well into the 2.2 million plus subscriber range.
Xero may well be overvalued, for sure, but the many losses so far need to be seen in Xero's strategic context. Which has been growth first, profits later.
Xero’s subscriber growth in the year ended March in the US was 48 percent while overall group growth was 31 percent.
“The cloud accounting software market is huge and is very under-penetrated. We think cloud accounting penetration in that market is less than 15 percent which compares to around 50 percent penetration in NZ,” Dickie says.
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