Xro - xero

[skid]

Fair enough.
Im not a holder (from a combination of fact that the environment for growth stocks is different now than from before-and being just plain cowardly of such a high SP)
I do however find it an interesting share to follow.

[couta1]

Fair enough.
Im not a holder (from a combination of fact that the environment for growth stocks is different now than from before-and being just plain cowardly of such a high SP)
I do however find it an interesting share to follow.

The wheels go round and round the up cycle will return in due course meanwhile Xro continues to do what it said it would aye,holding at $42 so cant be a coward

[Harvey Specter]

The question is, when will the make a profit from these customers, currently the more customers the bigger the loss ! 81% increase in subscriptions, loss more than doubled.
Disc: No longer holding.
From April :
With monthly committed subscriptions growing to $7.8m, the recurring revenue model means that Xero commences its 2015 financial year strongly with $93m in annualised subscriptions (representing an 81% increase on the $51.5m reported at the same time last year).
The net loss after tax for the second half of the year ending 31 March 2014 is anticipated to be similar to that reported for the first half resulting in a full year loss of approximately $35m, compared to $14.4m last year. Xero has expanded its team to 758 employees and has $210m of cash to fund its growth

Assume the Gross margin on XRO is very high - DIL is over 80% from memory.

Lets also assume that once you sign a customer, they are retained for 5 years (XRO doesn't publish its retention ratio which I think all SaaS companies should)

Lets also assume that they will sign up $100m of recurring income from the US over the next 2 years due to that $35m cash burn.

Would you not pay $70m over two years to earn $500m over 5 years with a 80% gross margin. ($500m x 80% = $400m - $70m = $330 NPBT)

Tweek those numbers as you see fit. While those S&M costs may continue beyond 2 years, they will be securing the next $100m ruccuring income for another 5years onward.

[winner69]

Rod has some real problems to sort out, he not thinking XRO today

Was transferring his iTunes files to a external drive yesterday and it all went wrong grr grr h sai .......and now this tweet

@roddrury: Consolidation of iTunes (as per Apple instructions) has meant half of media locations (000's) can't be found. Any good iTunes repair tools

[In4a$]

Assume the Gross margin on XRO is very high - DIL is over 80% from memory.

Lets also assume that once you sign a customer, they are retained for 5 years (XRO doesn't publish its retention ratio which I think all SaaS companies should)

Lets also assume that they will sign up $100m of recurring income from the US over the next 2 years due to that $35m cash burn.

Would you not pay $70m over two years to earn $500m over 5 years with a 80% gross margin. ($500m x 80% = $400m - $70m = $330 NPBT)

Tweek those numbers as you see fit. While those S&M costs may continue beyond 2 years, they will be securing the next $100m ruccuring income for another 5years onward.

Your onto it Harvey, it's just a bit risky for me at the moment, SUM, RYM etc safer short term and long term investments for me. I will be back into XRO eventually, sooner than later if those loss's start reducing

[winner69]

Not a bad sort of day for XRO

Jeez somebody had to say something about XRO today

[robbo24]

Zddviyctwqglnovdd!!!???

Nasdaq down over a percent...

[bull....]

Nasdaq down over a percent...

ugly xero could be headed to recent lows again

[couta1]

ugly xero could be headed to recent lows again

This repetitious daily commenting on the Nasdaq being up and down is getting quite boring both on this thread and other tech/biotech threads until the tide turns and the cycle reverses there will be no returns to previous highs and the tide will turn but maybe not for a year once the yanks get sick of the boring old so called safe stocks which of course they will its just in their nature

[bull....]

at your peril the person who does not take notice of relevant news or markets