Xro - xero

[winner69]

I'd put it as defections of 4,600 and new customers of 8,600. I think. I'm pretty sure those figures you quoted (18,000/22,000) were for H1 rather than Q1.

You are so correct - half year numbers

A bit like taking one step back before taking 2 steps forward

Like Dan Carter - as long as the try is converted it be OK

[RGR367]

.....................So if Intuit reports weak numbers tonight, it's good for Xero. Strong Intuit numbers are great for Xero!

Surely you cannot have both ways so kindly elaborate. Thank you in advance.

[Casino]

Surely you cannot have both ways so kindly elaborate. Thank you in advance.

Best way to explain it is in the words of Rod Drury: 'It will take Intuit a long time to catch up. Xero is developing at a faster cadence than Intuit and the gap in features will increase, not decrease because Intuit is such a big ship to turn around.' And like it says in the interim report today: 'Xero’s exceptional growth in New Zealand, Australia and the United Kingdom continues to extend its leadership in cloud accounting,...'

Intuit may have added 60k QBO subscribers over last three months alone, which is triple of Xero's total in North America but that would only prove one thing. Cloud accounting is synonymous with Xero. To say otherwise is like imagining the internet without AOL. Like Time Warner confronted with a new era, we may see a merger of Xero and Exxon to become the world's biggest oil small business cloud accounting conglomerate. Exxon Xero, EXXXero or Xerexxon? About the name I'm not so sure but you heard it here first!

[twotic]

If 95.8% of the customers at the start of the month are still customers at the end of the month, then the total remaining at the end of 12 months is 95.8%^12 = 59.8% (which is the same as lubos posted)

That is true, but you are of course making the incorrect assumption that XRO is not adding any new customers.

[BFG]

Changing subject...

What does everyone think about the Business Dashboard?

[twotic]

Incorrect, sir. I was merely trying to calculate the proportion of customers who do not last 12 months. Nothing to do with new customers.

Just to be clear, nothing I said was incorrect. What you calculated was the annual retention rate, extrapolated from the monthly churn rate - that I agree with. It was your inference (in relation to XRO) that I am not comfortable with.

"If 95.8% of the customers at the start of the month are still customers at the end of the month, then the total remaining at the end of 12 months is 95.8%^12 = 59.8%"

Your above statement is only true IF you assume no new customers - do you agree with that?

[twotic]

I'd put it as defections of 4,600 and new customers of 8,600. I think. I'm pretty sure those figures you quoted (18,000/22,000) were for H1 rather than Q1.

I don't have access to some of my historical data, but just to clarify, 18,000 to 22,000 is for the 6 months to Sep 30 2014 right?

If so, assuming a constant net growth rate in customers over time, and an average monthly churn rate (as per recent announcement), I get 4940 defections and 8940 new customers.

Out of interest what formula are you using to get your numbers (Winner & Mikey)?

[twotic]

You are right. The annual churn rate in North America is 40.2%

1 - (1 -0.042)^12 = 40.2%

not even close........ please read post 5651 & 5654.
winner please help this poor soul out.

Snapiti, my understanding is the post you refer to is correct - why do you believe him/her to be wrong?

[Shore]

Business Dashboard looks great. They're lining up their Xerocon's well. Biz Dash will be the centerpiece of Xerocon UK, and US Payroll the talking point of Xerocon USA mid year. Should be an exciting first 6 months for the company.

[twotic]

Again, your statement is only true IF you assume no new customers. Therefore, in the context of Xero, your statement is not accurate.

"If 95.8% of the customers at the start of the month are still customers at the end of the month, then the total remaining at the end of 12 months is 95.8%^12 = 59.8%"