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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news