GI was quoted in the Australian Financial Review on Monday stating that Xero is the only Australian company with the potential to be a $100 billion global tech behemoth.
As the market cap is less than USD5 billion now I am saying a 20 bagger is possible.
The $100 billion number was a matter of some dispute in the office - and a discussion is in the appendix. However suffice to say there is huge upside provided it all works.
Xero however have a few hoops to jump through on that path. This post is to explain my view and also what I hope management improve. I do not think they have done a great job of it so far (even though the stock and business have been a success).
But for the uninitiated I am going to explain what Xero does and why it has such potential.
Xero is an open architecture cloud-based small business accounting software package. It provides a proper double-entry accounting system for small businesses available from any reasonable device, and backed up automatically. It has permissions to allow various people different levels of access (to facilitate proper accounting controls) and in some jurisdictions it connects straight to banking systems to allow payments to be made directly from Xero.
We use it to run our business. It works. It is wonderful.
This is not an isolated view. Check out the @xero twitter feed. People unironically use the word "love" about accounting software. It makes their life easier - and is way better than alternatives out there. [Observation: as I wrote this I saw the first complaint I have ever seen about the Xero system having issues.]
As the market cap is less than USD5 billion now I am saying a 20 bagger is possible.
The $100 billion number was a matter of some dispute in the office - and a discussion is in the appendix. However suffice to say there is huge upside provided it all works.
Xero however have a few hoops to jump through on that path. This post is to explain my view and also what I hope management improve. I do not think they have done a great job of it so far (even though the stock and business have been a success).
But for the uninitiated I am going to explain what Xero does and why it has such potential.
Xero is an open architecture cloud-based small business accounting software package. It provides a proper double-entry accounting system for small businesses available from any reasonable device, and backed up automatically. It has permissions to allow various people different levels of access (to facilitate proper accounting controls) and in some jurisdictions it connects straight to banking systems to allow payments to be made directly from Xero.
We use it to run our business. It works. It is wonderful.
This is not an isolated view. Check out the @xero twitter feed. People unironically use the word "love" about accounting software. It makes their life easier - and is way better than alternatives out there. [Observation: as I wrote this I saw the first complaint I have ever seen about the Xero system having issues.]
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