Monday 18th March 2013
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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.
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