Xro - xero

[Shore]

What would be more insightful is to know what the breakdown of the churn rate is of business closing up shop versus moving off to another accounting solution because one of those options is impossible to do much about.

[winner69]

Quick number Nort America for H1

Opening number customers 18,000

Customer defections 4,600

New customers 8,600

Customers Sep14 22,000

That's how I see it anyway .... unless my logic and understanding of churn rates is ****. Please correct me if wrong

But Rod's men says its expected to have such a high rate of defections

[winner69]

43% increase in the net loss. Impressive stuff, and definitely becoming of a company valued at $2+ billion.

PE is coming down as a result

[jonu]

I suspect intitutional buyers will react and start to accumulate tomorrow as the report was released latish in the day. Today's late sellers would have been traders who got spooked. Strong support for $17 area at close of trade

[Shore]

In an odd sort of way, perhaps Intuit peddling QBO so hard will in fact accelerate the adoption of cloud accounting in the conservative US market much quicker than if Xero were trying to force the issue on their own.

DISC - glass is half full.

[lubos]

I don't think it works like that... please read winners69 post 5651 so you understand the logic a bit better

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

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

[mikeybycrikey]

Quick number Nort America for Q1

Opening number customers 18,000
Customer defections 2,300
New customers 6,300
Customers Sep14 22,000

That's how I see it anyway .... unless my logic and understanding of churn rates is ****. Please correct me if wrong

But Rod's men says its expected to have such a high rate of defections

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.

[Chaowee88]

Give me 180million I bet I can burn less cash than Xero in 6 months. I'm confident my net loss would be less than 20M. It will only go towards my lavish lifestyle.

[Casino]

In an odd sort of way, perhaps Intuit peddling QBO so hard will in fact accelerate the adoption of cloud accounting in the conservative US market much quicker than if Xero were trying to force the issue on their own.

DISC - glass is half full.

I think you're right. Cloud to cloud conversions are easier than migrating from desktop. The slow uptake is basically nothing but a trap for Intuit. So if Intuit reports weak numbers tonight, it's good for Xero. Strong Intuit numbers are great for Xero!

[apac]

The results look pretty good to me. The speed it gains new customers does not matter as much as how many customers they will have long term, and how much money they will make long term. It looks like they can continue to gain customers at a reasonable rate. People just need to be more patient I guess. Perhaps we can compare US to when the company first started, and in a few short years, we'll see Xero become unstoppable in US. I'm looking forward to the day Xero reaches the next milestone of 500k customers, then 750k, 1m, 1.5m, 2m and beyond.

DISC no position in XRO, just really like the company.