Sharemarket darling, online cloud-based accounting company
Xero - which is yet to post a profit - is expected to give a
detailed account of growth prospects when it releases its
full-year results tomorrow.
From a low of $13 a year ago, Xero shares surged to a high of
$44.98 in early March and were yesterday trading around
Craigs Investment Partners broker Peter McIntyre is expecting
Xero to post an after-tax loss of around $35 million
tomorrow, but conversely show an improvement in operating
''The market will be expecting more charity on its future
profitability expectations, and [more] customer growth.
''A continuation of high growth is expected, to support its
high share price,'' Mr McIntyre said.
From a Xero update last month, the company said operating
revenue was up 83%, to $70.1 million, which had been in line
with earlier financial guidance, driven by growth across all
Mr McIntyre noted 66% of revenue was now generated outside
Committed monthly revenue was $23.2 million from New Zealand,
$27.7 million from Australia, $9.8 million from the United
Kingdom, $3.3 million from the United States and $2.6
million, from other countries.
Xero staffing rose 98% from a year ago to 758. Based in
Wellington and founded in 2006, the company holds $210
million cash in hand, from a recent capital raising.
Xero listed in June 2006 and in its initial public offering
in 2007 raised $15 million. In March 2009, it raised a
further $29 million.