The Xero Limited (ASX: XRO) share price is down 2% on Thursday as the market endures another day in the red.
The S&P/ASX 200 Index (ASX: XJO) is currently down 0.7% to 7,146.1 points.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) is also down 0.7% at the time of writing.
Xero shares are changing hands for $113.75 apiece amid the company's annual general meeting today.
Xero share price weaker as CEO talks up expansion
CEO Sukhinder Singh Cassidy told shareholders that the company is focused on expanding its global customer base and "being even more customer centric in all that we do".
At the last count, the company had 3.7 million subscribers to its cloud-based accounting platform.
The churn rate is very low at 0.9%.
Xero estimates the lifetime value of these 3.7 million subscribers is NZ$13.4 billion.
However, Singh Cassidy says the total addressable market for their products is more than 45 million small businesses globally.
The ASX 200 tech company is particularly focused on expanding its presence in the United States.
Singh Cassidy said:
While we delivered good results for FY23, we are not satisfied with the size of our current business against the market opportunity [in North America].
We remain confident that this is a critical market for SMBs and their advisors, and that Xero is providing current value to customers.
One of my tasks in the coming months is forming a much deeper and more nuanced view on our North America strategy and execution.
Singh Cassidy said she hopes to provide an update on the US strategy in November.
She also announced that Xero will host an Investor Day on 29 February next year.
Is this ASX 200 tech share a buy?
Top broker Citi sees more share price growth ahead for Xero.
It has retained its buy rating on the ASX 200 tech share with a 12-month price target of $141.90.
This implies a potential upside of 25% for the Xero share price.
The Xero share price has risen 62.6% in the year to date while the ASX 200 has gone up 3.1%.