Xero triples revenue but still bleeding cash

1000 US clients Xero now had over 1000 clients in the US - where its CTO recently relocated - however would not "as a matter of fact put our hammer down" until a major partnership was secured similar to Xero's marketing alliances in Australia with Telstra and ANZ in Australia, or BT in the UK.

Net loss afterwards tax was recorded of $7.6 million, down from $8.3 million, and revenue surged to $9.34 million from $3.15 million.

The Diversity principal added

The Diversity principal added, "Their burn rate is high and the only way to offset in other words through higher revenue. The real possibility is in the US and in hat market Xero faces both incumbents looking to innovate and more agile startups with a home advantage. Xero needs to move fast to build their US revenues nevertheless needs to do so with a model that works for such a massive market. Personally I'd like a little more clarity into their intended approach in that market."

Burn rate was $18m for the last 12 months, however we don't know the annualised rate - let's say it's $22mCurrent monthly revenue is $14m annualised, and growing.Overall it's a actually good picture when they have $16m+ in the bank.

How Ben has built up a profile as a cloud commentator

While I respect how Ben has built up a profile as a cloud commentator and gets the overseas trips I'm but to hear him say something insightful that demonstrates an understanding of business strategy or the market.

Revenue is currently $14m, whereas it was $3.15m a year ago. That's an impressive growth rate driven by over doubling end of year customer numbers.

The annualised revenue

Rod's comment implies the annualised revenue and costs lines will cross later this year, which seems very reasonable given the numbers and trends. The biggest question I have is what to do with marketing spend. If it's demonstrated that more cash upfront drives gives more clients and significant net NPV at the time there is a case for ramping that up and holding off on monthly profitability. Amazon did this for years, one the land grab and are now milking the success.

Also notable for sustainability of the business model:"The Company's sales operations in all countries are now covering their direct costs."