Xero results gives something for ‘bulls and bears’
Xero’s free cash flow – cash left over after operating and capital expenses – more than tripled over the past year, beating market expectations by 133%.
Key takeaway: Xero beat market expectations across a range of key metrics, but some analysts have questioned its future growth and whether it will meet its self imposed goals.
Xero, the ASX-listed but New Zealand–based technology company that provides cloud-based accounting software for small businesses, has surprised the market by achieving its ‘Rule of 40’ goal this year, delivering a combined sales growth and profit margin of 41%.
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Key points
Revenue: Up 22% to $1.71 billion.
Profit: Up 254% to $175 million.
Key takeaway: Xero beat market expectations across a range of key metrics, but some analysts have questioned its future growth and whether it will meet its self imposed goals.
