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Xero share price higher following AGM update

xero share price
Source: Xero

The Xero Limited (ASX: XRO) share price was a positive performer on Thursday. This  follows the release of its annual general meeting presentation.

The business and accounting software provider’s shares rose 0.5% to $89.31.

What happened at the annual general meeting?

As well as providing investors with a breakdown on its performance over the last 12 months, Xero provided an update on its recent performance.

According to the release, operating conditions remain uncertain for Xero and it continues to anticipate an impact from COVID-19 on its FY 2021 results.

However, this hasn’t stopped the company from adding to its subscriber count during the pandemic.

Since the start of April and through to 31 July, Xero recorded 96,000 net subscriber additions to its platform. This lifted its subscribers to a total of 2.38 million at the end of the period.

Management notes that its subscriber additions were stronger in the Australia and New Zealand segment compared to the International segment. Though, positively, while these additions and churn trends have varied by region, all geographies achieved positive net subscriber additions during the four months.

No commentary was provided on its financial performance. Though, it has advised that it is deferring price increases to help customers through the crisis.

Outlook.

Xero’s view on FY 2021 hasn’t changed since the release of its full year results. It continues to believe that the COVID-19 uncertainty makes forecasting difficult. As a result, it won’t be providing guidance at this stage and instead is focusing on the future.

It commented: “Xero’s ambition is to be a long-term oriented, high-growth business. We continue to operate with disciplined cost management and targeted allocation of capital. This allows us to remain agile so we can continue to innovate, invest, support our customers, and respond to opportunities and changes in our operating environment.”

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Returns as of 6th October 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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