Thursday 4th July 2013
|Text too small?|
Xero, the cloud-based accounting software firm, has doubled its market capitalisation in just four months, rising above $2 billion today, having still to turn a profit.
The shares rose 3.9 percent to $17.40 on turnover of some $935,000, valuing the company at $2.04 billion and adding to its 120 percent jump this year. That makes it the 11th biggest company on the stock exchange, leapfrogging online auction site Trade Me, which is valued at $1.96 billion.
The Wellington-based company joined the billion-dollar club in March when its stock price reached $8.60 and is seen as the frontrunner for locally listed tech companies alongside governance app maker Diligent Board Member Services. Spy software maker Wynyard Group will be the latest addition to the growing tech sector on the bourse when it lists on July 19.
In May, Xero chairman Sam Knowles and chief operating officer Alastair Grigg cashed in some of their shares at the end of a 'black-out' period when the share price was about $13 for $1 million and $2.8 million respectively.
Xero director Sam Morgan, of Trade Me fame, sold 1 million shares at $7.40 in December, reducing his stake to 4.37 percent, a month after the company's three biggest shareholders - chief executive Rod Drury, director Craig Winkler and co-founder Hamish Edward - sold a total of $22 million shares at $6 apiece.
As at March 31, Drury was still the biggest shareholder with a stake of 21.7 million shares, or about 19 percent, worth $387.6 million at today's price. He's followed by Winkler with 18.5 million shares, or 16 percent, then Matrix Capital with 9.8 percent and Thiel with 7 percent.
The company has 4,715 shareholders on its register, with 54 of them holding 83.7 percent.
The accounting firm reported an annual loss of $14.4 million in the year ended March 31 as it continues to chase sales growth at the expense of short-term profits, doubling sales to $39 million. That means the company is valued at 52 times sales.
Xero has managed to attract 157,000 customers, the bulk of which are in Australia and New Zealand, giving it annualised monthly revenue of about $51.5 million, or about $328 per client.
The company is looking to reach one million paying clients, with about 350,000 in Australia and 360,000 in the US, according to Xero's investor presentation in May.
NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.
No comments yet
Xero’s Drury says $180M capital raise ‘sends strong signal’ to competitors
Xero raises $180M selling shares at premium to Matrix, Thiel, others
Xero shares halted pending outcome of capital raising
Xero adds another 36k customers since March, sees 80 percent lift in 2014 sales, wider loss
Xero tells NZX that 23 percent slump in shares reflects volatility in tightly held register
Xero topples Port of Tauranga as highest price local stock on NZX
Xero chair, COO book million-dollar paydays after shares more than triple in past year
Xero posts $14.4 mln FY loss, doubles revenue and paying customers
Xero adds 23k customers since September, expects to double annual sales
Xero adds 23k customers since December, expects to double annual sales