XRO - Xero

[winner (n)]

Talked to Rod many years ago  and he excitedly told me that they were close to the stage where the cash for every new customers would flow through to the bottom line because expenses would not need to increase much ....he used to carry around a diagram/chart which had future sales and expenses shown and loved to describe it as a set of crocodile jaws sucking in all the cash.

These days I often think this automated cloud stuff is an illusion and that in reality Xero buildings  around the world are full of good old fashioned bookkeepers (humans) who take the stuff that comes through from this cloud and manually update the customers set of books/accounts and then sending those back through this cloud thing

Get the picture - more accounts/customers more human bookkeepers working away in the buildings

Maybe I was influenced by Mr Grimm and his story of the The Elves and the Shoemaker .... at least the elves sneaking in at night and doing the work

[Hectorplains]

https://thebull.com.au/18-share-tips...6+January+2023

The Bull is keen on Xero.

[Basil]

30 cents eps in FY24...wow that's impressive, puts them on a forward FY24 PE of "only" 233 lol

[BlackPeter]

30 cents eps in FY24...wow that's impressive, puts them on a forward FY24 PE of "only" 233 lol

Yep, price dropped a lot and still so dear ... market must still price in a sh*tload of future growth.

Ah well, sometimes markets are right and often they are wrong. Just hard to determine for the future which it will be ...

[winner (n)]

Another tech outfit realising they don't charge enough for what they offer

So 800 jobs to go

Yes, staff are just consumables
https://www.rnz.co.nz/news/business/485606/xero-announces-plan-to-cut-up-to-800-jobs

[KW]

Seems like the "San Francisco" effect has already taken over Xero

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[Waltzing]

Suspect these old technology platforms will implode.. not this year of course or next... putting up a quick invoice app could be where CHAT AI could EXCEL.. rather than sending a HIT Squad out to kill you.

After all sole traders are END POINT solutions which begs the question why would you need advanced low level record and field locking databases when other data storage that is much cheaper could be used.

Of course since MB and ZRO data mine la customer databases.

Actually when  data privacy gets going clients could possible ask for money back for data extracted or SUE them.

[Pierre]

XRO has hit an all time high of $182.50 - that's over $200 NZD.
Incredible performance for an NZ-based enterprise.
Wish I'd bought more when I first invested at around $5.

[Waltzing]

sell - or hope the old SQL stuff lasts a bit longer ...

Block chain hasnt gone away ...

with google having big problems with there AI models going into repeat stall loops these old tech companies cant afford a stuff up...

[Left Field]

Great acquisition by XRO

https://hotcopper.com.au/threads/ann-xero-to-acquire-melio-to-accelerate-us-growth-raises-equity.8637510/?post_id=79554702

[Pierre]

Great acquisition by XRO

https://hotcopper.com.au/threads/ann-xero-to-acquire-melio-to-accelerate-us-growth-raises-equity.8637510/?post_id=79554702

Definitely. Should give a significant boost to XRO's penetration into the US market.

It will be interesting to see the Placement price!

[Pierre]

XRO appears to be well out of favour at the moment. Any thoughts on why the SP has dropped so much over recent months?

[winner (n)]

Maybe it wasn't really worth $185 it got to a few months ago

Still in long term uptrend though

[Basil]

XRO appears to be well out of favour at the moment. Any thoughts on why the SP has dropped so much over recent months?

Sorry mate I can't help you on this one. Trades on 89 times FY26 earnings per share.  Average target price is $A222.  Disc: I've never understood their valuation so I stay in my lane and invest in companies with valuations I DO understand.  https://www.marketscreener.com/quote/stock/XERO-LIMITED-11900043/consensus/  I see analysts are expecting EPS of over $3 per share by FY28 so the PE will be less than 50 by then.  Is that good for a SAAS company growing at their speed ?  I have no idea.

[Pierre]

Maybe it wasn't really worth $185 it got to a few months ago

Still in long term uptrend though

I hope the current downtrend is not longterm.
Seems not too many punters believe the latest acquisition will do what XRO says it will achieve - not quickly, anyway.