Xero reaches 400,000 global customers
See also: Has Xero's share price bottomed out?
Xero [NZX: XRO], the cloud-based accounting software firm, says it has more than 400,000 customers globally and is "back on track" in its key US market.
In 2014 it processed more than $250 billion worth of transactions, 95 million invoices and now holds more than a half a petabyte of data collected which covers business performance and gives insight into small business economics and trends, the Wellington-based company said in a statement. The software developer wants a million customers, and is targeting growth in the US market where it sees the potential to take market share of an estimated 29 million small to medium sized business owners.
"New Zealand and Australia's most loved accounting platform has achieved a similar position in the UK and is back on track in the US," chief executive Rod Drury said. "The small business cloud market is still in its infancy: of the addressable market of hundreds of millions of small businesses, only a small percentage currently use cloud financial software."
The company last year raised $180 million in new capital to fund its US growth plans and is eyeing a US listing after it reaches annual revenues of US$100 million, expected in this financial year, and has tapped former Microsoft chief financial officer Chris Liddell as chairman.
Globally tech stocks have pared gains made early in the year as investors questioned high valuations relative to earnings. Shares in Xero rose 1.5 percent to $16.45 and have fallen some 64 percent from their March record of $44.99 as analysts weigh the company's stock price against its ambitious US plans and the ability to take market share from incumbent Intuit.