Pattrick Smellie for BusinessDesk writes: Shareholders in cloud accounting software firm Xero will be looking for guidance from the company at its annual meeting in Wellington this evening about progress in the crucial US market.
The company has been among the most exciting rides on the NZX in the last couple of years, peaking at $45.68 a share in February this year but slumping to half that level since, closing yesterday at $23.91 a share. A year ago, they were at $17.30 on the eve of the annual meeting.
However, Fairfax Media carries a report this morning from what it describes as “an influential US accountant”, Michelle Long, suggesting that the strong buzz around Xero in the US market last year has ebbed this year.
“I have a LinkenIn group with almost 80,000 members and I haven't seen a question or comment about Xero in months," she told Fairfax’s tech reporter, Tom Pullar-Strecker.
Meanwhile, US incumbent accounting software supplier Intuit has been pushing hard to gain the loyalty of both existing and new customers.
Xero’s business model has been all about exponential revenue growth to build global scale, with profitability to follow.
While estimates for the current financial year put total revenues above $120 million, up 75 percent in the year, the company is not yet profitable.
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