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Thread: Xro - xero

  1. #21
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    quote:Originally posted by warthog


    Who said Xero wanted income before 300307? Maybe their current goal isn't income?
    Let me guess, the reason you get up and go to work in the morning, is beacuse it is for the overall benefit of humankind, and has absolutely nothing to do with that insignificant little detail called "income" ?


  2. #22
    Senior Member warthog's Avatar
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    quote:Originally posted by Dazza

    i like the part 'money raised to give to directors @ 4% interest so they can buy the shares'
    Actually this is relatively common practice around the world. Other ways to achieve the same thing, with less risk to directors, is to issue options.
    warthog ... muddy and smelly

  3. #23
    Senior Member warthog's Avatar
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    [quote]quote:Originally posted by kura

    Why would I want to transfer my bizz away from MYOB, to a SaaS service which has the potential to cost me a lot more in the long run ? Just can't see anything compelling at all myself. The cheapest XRO option is $50 per month, what does MYOB cost now (about $500 ? ) I purchaesd MYOB about 6 years ago, (got sick of doing everything on a spreadsheet) if I had been using the XRO service over the same 6 years that would have been a total cost of $3,600
    Current Xero pricing may or may not reflect eventual pricing.

    If things change, MYOB will charge you for an upgrade. It's part of the revenue model. Xero will make the change, and you keep going.

    At some price-point, Xero will make sense for busy people. We kiwis are world-famous for wanting to do everything ourselves and forgetting that if we stuck to our knitting, we would earn more. Same goes for tax avoidance.
    warthog ... muddy and smelly

  4. #24
    Senior Member warthog's Avatar
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    quote:Originally posted by kura

    quote:Originally posted by warthog


    Who said Xero wanted income before 300307? Maybe their current goal isn't income?
    Let me guess, the reason you get up and go to work in the morning, is beacuse it is for the overall benefit of humankind, and has absolutely nothing to do with that insignificant little detail called "income" ?
    No offence intended but there are times for everything. I reiterate - what is the point in having an online service if sudden popularity means that the servers are hammered so bad they fall over?
    warthog ... muddy and smelly

  5. #25
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    quote:Originally posted by warthog

    quote:Originally posted by Dazza

    i like the part 'money raised to give to directors @ 4% interest so they can buy the shares'
    Actually this is relatively common practice around the world. Other ways to achieve the same thing, with less risk to directors, is to issue options.
    Quite right, if the worst happened and went belly up, who would want a loan that could be attacked by liquidators ?

    Regards their pricing & bizz model, I would like to see them charge minimal (or zero) fees for the basic service, then make their money out of advertising/support/additional services. Owners of SME's would be a marketers delight, just think of that buying power logging on to your website every other day. Team up with an enterprising accountant, and you would have a one stop shop for SME compliance issues. (Someone might do it one day)

    Now a free service, that sure would put a strain on your servers !

  6. #26
    Senior Member warthog's Avatar
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    quote:Originally posted by kura

    quote:Originally posted by warthog

    quote:Originally posted by Dazza

    i like the part 'money raised to give to directors @ 4% interest so they can buy the shares'
    Actually this is relatively common practice around the world. Other ways to achieve the same thing, with less risk to directors, is to issue options.
    Quite right, if the worst happened and went belly up, who would want a loan that could be attacked by liquidators ?

    Regards their pricing & bizz model, I would like to see them charge minimal (or zero) fees for the basic service, then make their money out of advertising/support/additional services. Owners of SME's would be a marketers delight, just think of that buying power logging on to your website every other day. Team up with an enterprising accountant, and you would have a one stop shop for SME compliance issues. (Someone might do it one day)

    Now a free service, that sure would put a strain on your servers !
    Pricing: who wants to watch ads or be marketed widgets when trying to get your accounting done? The ads would drive a hog to drink.

    Free: if you pay for something, you can expect something in return. Try complaining (not that complaining about an accounting tool is very useful - you just want the damn thing to work) about something you got for free. Get you anywhere?

    Certainly, a cheaper option that would attract interest from those not wanting to go the whole hog (sorry) and then once their data is there it's easy to continue or upgrade as the case may be. However, the time for that may not be now. Remember, if you start with higher pricing, you always have the option of lowering your prices. You can guess what happens in a competitive market if you start your product off cheaply and raise pricing as you start to build marketshare ...
    warthog ... muddy and smelly

  7. #27
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    There is no reason I would think of to invest in this IPO over better risk/reward options out there. My prediction of share price: Stagnation (unless the boys selling the business prop it up)

  8. #28
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    Looking at the cash flow statement I see XERO receipts from customers! $55 million seems excessive for projected revenues of only $550,000. Even if projected earnings were $550,000 that would have given a P/E of 100! I will be more fun gambling my money at the TAB ($5.50 for SA to win the RWC!)

  9. #29
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    Well it is a start up from nothing so it will be all go to get it all going in NZ, then Aus and UK. Some risk, a lot of faith needed but potentially big gains.

    42 below led the way with IPO of a non operating company.

    There must be something different from Quicken, MYOB which have internet access parts but are not fully internet based.

    Might be how they get income - eg the trademe type thing where you pay bit by bit and have lots of advertising but no up front fee. Ie a free service. That could appeal to Kiwis.

  10. #30
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    quote:Originally posted by warthog

    No offence intended but there are times for everything. I reiterate - what is the point in having an online service if sudden popularity means that the servers are hammered so bad they fall over?
    No offence taken, but rather than getting into a discussion over needless details, the real point of my arguement was that at listing of IPO there will be 55 mill $1 shares on issue, of which the public will "roughly" own 15 mill, meaning the existing owners are rewarded with holding the remaining 40 mill, if the idea was that brilliant then fair enough, maybe their bizz model is worth $40 mill.

    Trouble is that I'm sure that a few of us could come up with an even better bizz model, just by sitting round a BBQ one afternoon, and throwing round a few ideas.

    Disc: Would love to have $40 million for every BBQ I've been to this year !

  11. #31
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    Well, whatever happens next it must be said they got it listed and it ended up 10% after day one.

    Congrats Rod Drury and co.

    The other thing I suspect it proves is there plainly an appetite amongst some investors for risky, potentially high growth companies. Expect to see more.

    Disc : None
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  12. #32
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    Yep, Fair enough, credit where credit is due, well done, I sure didn't think they would get this far !

    Disc: Not even tempted !

  13. #33
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    Down to below to issue/float pricing now =.90c wheres the bottom = good byeing (pun intended!!!)

  14. #34
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    Xero moves to General Release


    Xero Live Limited ("XRO") today announced the move to a General Release of its small business accounting software.

    General Release means Xero now has systems and processes in place for expected future growth, including streamlined customer sign-up and the introduction of a Xero "demo" for prospects wishing to trial the software.

    Xero has been releasing software approximately every three weeks, in line with its schedule. This frequent release of functionality is underpinned by Xero's unique Software as a Service business model, where software updates are delivered over the Internet at no additional cost to the end user.

    Xero's move to General Release confirms the company's goal set out in its Offer Document that it would have the operational capability required in August to move from Limited to General Release.

    Xero Chief Executive Rod Drury said the company had achieved another key milestone.

    "Since we listed 11 weeks ago we've had our heads down building a platform for growth in three key areas - building our team, delivering software and forming partnerships with accountants."

    Mr Drury said the company had continued to hire the best people in a very tight labour market. Xero now has a core team of 41 people across its Wellington headquarters and Auckland offices.

    Xero has also made significant investment in its back office management systems, which are fundamental to building a scalable business.

    Xero's marketing activities since listing have primarily concentrated on accountants. Xero's national roadshow in August introduced Xero to the New Zealand accounting community.

    "Accountants are key advisors for our target market. Their input helps us refine out product roadmap so we can create the most compelling offer for all small businesses," Mr Drury said.

    Xero's Partner Programme for accountants includes a listing on Xero's "Find An Expert" section of its website, training, and joint marketing to small businesses.

    As Xero moves into General Release its sales focus will initially be on a small segment of the overall target market.

    "We are confident we have a great product for start-up and professional services businesses. This is where we'll be focussing our initial customer acquisition activity while we continue to create a more comprehensive offering for the broader market," Mr Drury said.

    "These are early steps in a long journey. We are pleased with the progress we are making, executing our plan."


    For more information, contact:
    Kate McLaughlin
    Market Communications Manager, Xero
    +64 21 481 554
    kate.mclaughlin@xero.com
    www.xero.com

  15. #35
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    I missed the part with the earnings guidance?
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    Quote Originally Posted by Stranger_Danger View Post
    I missed the part with the earnings guidance?
    earnings guidance would be a bit irresponsible at this stage I'd say. Once they get some sort of idea how sales are going then they should provide some sort of guidance. But nonetheless this is a good step.

    disc. hold none. not interested

  17. #37
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    So the head sales guy and the head finance guy are both leaving. Sales and finance are pretty key areas once you're past the idea stage and are trying to build an actual business.

    Negative because the two guys now see Xero has its work cut out so bailed? Or positive because they weren't right for the job and the company has acted quickly and nudged them out for better prospects?

    Interesting nonetheless this early on.
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  18. #38
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    Quote Originally Posted by Stranger_Danger View Post
    So the head sales guy and the head finance guy are both leaving. Sales and finance are pretty key areas once you're past the idea stage and are trying to build an actual business.

    Negative because the two guys now see Xero has its work cut out so bailed? Or positive because they weren't right for the job and the company has acted quickly and nudged them out for better prospects?

    Interesting nonetheless this early on.
    Your byline gives you the answer and it is to the negative question.
    Last edited by biker; 14-12-2007 at 08:47 PM. Reason: spelling

  19. #39
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    Default My thoughts on XRO

    Been watching this company as the idea behind it is sound and I met Drury a few weeks ago and his enthusiasm got me interested. One of the main advantages of XERO is that different businesses can use it to connect their accounts payable/receivable thus if a good number of people start using the software it will begin a snowball effect. But that's also the problem. How much does the average NZ business owner trust internet security? Enough to input all their businesses financial data? Well maybe but I'm not sure just yet. Success will occur if/when a critical mass of small businesses trust the security enough use the software and the rest of the SME community follows suit.
    The size that critical mass needs to be depends on how connected the NZ SME community is. The more connected, the fewer needed, the more disparate the greater. I'm not investing in XRO right now because it is a complete punt and I'm better at blackjack but if we start to see evidence of SIGNIFICANT top line growth (indicative of the growing customer base and approaching the 'tipping point') this could be an excellent investment.

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    Default Netsuite IPO

    Haven't read through whole thread so forgive me if already mentioned - time constrained.

    Internation Herald Tribune today article on Netsuite IPO which does what XRO does plus a few other things. Current revenue around USD 80m. Ellison acting as banker and suggested original idea to founder. In same space as XRO ; SME.

    Just thought I'd show that this idea is getting serious. Presumably NASDAQ listing.

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