The Motley Fool Pro team caught up with XERO FP NZ (ASX:XRO) CEO Rod Drury, who is swinging through Australia for the company's big Xerocon event later this week. Here's a quick morsel-sized, Twitter-tastic take on the team's latest thinking.
Great catch up with @RodDrury today. @Xero has so many futures and Rod has the focus and patience to bring them to life. 1/N
Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
$XRO has been punched in the nose since we first bought shares last year, but the business case keeps strengthening… 2/N — Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
Subscription revenue grew 81% last year and $XRO's 87% retention rate is Foxtel-esque. Gaining share in all markets and… (3/N)
— Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
Xero has rounded out the accounting product suite. Also expanding those markets, as many user-first disrupters do. 4/N — Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
Gains will come in the US with time. Fixed the US leadership team and will have payroll in 50 US states by year end. It's a slow burn. 5/N
— Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
Speaking of burn, losses have risen, but for good reason. Customer acquisition costs booked immediately but value accrues over years. 6/N — Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
We estimate the present value of $XRO's incremental profit on a new customer is almost 3X the acquisition cost. 7/N pic.twitter.com/CL5qK5EAiY
— Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
Very attractive economics on just the existing suite. New markets and products are eventualities, and will leverage strong, loyal base. 8/N — Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
And plenty more room to run in the existing accounting channels (9/N). pic.twitter.com/V9UpXVmrKf
— Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
Bottom Line: It'll be a bumpy ride — comes with hyper-growth territory — but we've booked seats for the very long-haul. 10/N — Motley Fool Pro (@MotleyFoolProAU) August 11, 2015
