XERO: 7.8% growth in 71 days projecting to 47% annual growth / Jan-Apr Spiking & Tax Year Seasonality

Kind of interesting...over at ShareTrader.co.nz, investors took another view toward Xero's growth announcement of 400,000 clients worldwide.

 Originally Posted by Casino 

The announcement may not be as good as you think.

"Yeah I was thinking the announcement [400,000 customers] wasn't that good, although it's hard to judge the annual sales patterns for Xero when they only announce sales figures about 6 times per year. 

It looks like they sell a lot more in Jan-Apr than at other times of the year and it also looks like sales depend on when the tax year falls in various countries. 

The last figures they announced were for 30 Sept which was 371,000. That gives 7.8% growth in 71 days which projects to 47% annual growth. Not impressed by that but it's hard to draw a trend from a short period of time that may not be indicative of the full year."  - ShareTrader Comment
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Click here to read the thread (and this kind of interesting scribbling of notes from the Xero U.S. Partner Update on 12/10/14).