Xero becomes billion dollar company without turning a profit

Thu, 07 Mar 2013

By Paul McBeth March 7 (BusinessDesk) – Xero, Wellington-based cloud accounting software firm, has become New Zealand’s latest billion dollar company after its shares climbed to a new record today. The stock rose 5.7 percent to $8.60, giving the software developer a market capitalisation of $1.01 billion and putting Xero in the company of 17 other local issuers on the stock exchange. That's about 21 times Xero's implied annualised sales of $48 million from its 135,000 customers. "It's not over-priced at these levels," said Andrew Harvey-Gr...

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