Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Xero’s Drury says too early for US listing

Xero’s Drury says too early for US listing, share price soaring with profile

March 18 (BusinessDesk) – Xero, the cloud-based computing company whose shares have more than tripled in the past 12 months, isn’t yet large enough to consider a US listing, says founder and chief executive Rod Drury. The shares dipped from Friday’s record high.

“A US listing is certainly something a business with global aspirations would consider,” Drury said in a statement. “We have been advised it would not make sense to consider a listing in the US until we can see at least US$100 million of revenue, so the focus for now remains on growing the team, customers and revenue while building systems and processes for efficiency.”

He reiterated that Xero is on track to double revenue in the year ending on March 31, which would put annual sales at about $38.8 million (US$32 million).

Shares of Xero, which is yet to make a profit, fell 4.2 percent to $10.25 on the NZX today.

Drury statement attempts to explain the meteoric rise in the company’s stock, which now has a market value of $1.21 billion, more than retailer Warehouse Group and global transport firm Mainfreight on about $1.2 billion.

He said the share price gain coincides with increased overseas investor appetite for exposure to Software as a Service technology, which is seen as a fast-growing segment over the next five years.

Xero’s own profile has been lifted offshore by the appointment this month of Stuart McLean, a Google executive in Australia, to the new role of chief revenue officer, media interest in the US and roadshows for accountants in Australia.

The company will provide an operating update in early April, he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news