First look at Xero results
1: Xero made $24k from 204 paying customers and 404 users.
That’s $117 per customer and $59 per user, but the report states $54 per customer. Perhaps the $54 is the average monthly per customer revenue.
2: Xero received $16k in cashflow from customers (“receipts from customers” – i.e. an additional $8k booked but not received – a useful number)
3: Xero spent $2.36m (operating) + $486k (Dev costs) + $240 (other assets) = $3.086m in cash on operating over the period.
4: Xero made loans to 3 directors for $300k. The money from those loans ended up being passed back through the IPO procees but will not be forgiven.
5: Xero earned $493k interest (from the IPO money) and $107k GST = $900k in cash.
6: Xero received $15m from the IPO, which cost $1.1m for a net return of $13.9m.
7: Xero now has $12.6m left, spending $2.8m (plus that $1.1m IPO cost) after starting with $1.5m and receiving (net) $13.9m.
This is all over six months, and obviously Xero has moved forward in both revenue and burn rate per month over that time. The next step is to figure out their monthly burn rate and try to see what the future holds.
Monthly costs are $50 per customer (and yes – $10 for additional customers). Xero was launched in – mm when, and moved to general release in August.
So this 2 month (August/September) result represents 2.34 months of payments per customer.