Xero passes the 500k customer milestone
Company targeting one million subscribers.
Jenny Ruth talks about the latest Xero milestone on NBR Radio and on demand on MyNBR Radio.
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Xero [NZX: XRO] has passed another key milestone in gaining half a million customers, having grown ten-fold in the last four years.
“It’s a good result but it was always on that trajectory – we knew it was fairly close,” says Forsyth Barr analyst Blair Galpin.
The accounting software company had 475,000 customers at the end of March.
The company gave no breakdown of where the growth came from but Mr Galpin says most of it will have come from the strongly growing markets of Australia and the UK.
A key question continues to be how fast Xero can build its customer base in the US.
Xero’s founder and managing director, Rod Drury, says the company now has its sights firmly set on getting to a million subscribers.
Mr Galpin says, given the current run rate, it could be expected to take less than the four years it took to grow from 50,000 customers.
“The run rate is ramping up every year.”
Xero shares last traded at $20.40, and have gained 26 percent this year. The stock is rated an average 'sell' based on five analyst recommendations compiled by Reuters, with a median price target of $20.
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Jenny Ruth
Thu, 04 Jun 2015
Thu, 04 Jun 2015
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