Xero Follow-Up

Xero published its full year report today, so it is time to update our figures. The following table summarises the salient metrics:

	2014	2015	2016	2017F
Revenue	143m	207m	295m	410m
COGS	30%	24%	23%
R & D	50%	48%	41%
General	20%	15%	13%
Marketing	75%	72%	56%
Total	175%	159%	133%

Once again, the figures are headed in the right direction. Cash burn is still $71m, with $114m left in the bank, implying a steady runrate of 1.5 years. 

As a matter of comparison, let's look at Intuit's 2016 metrics:

Revenue USD$4.7billion up 12% from 2015 (note: XRO growth is 44%)
COGS 16% of revenue
R & D 19% of revenue
General 11% of revenue
Marketing 28% of revenue
Total 74% of revenue

The current market cap for XRO is roughly NZ$3.2 billion. Still too rich for my taste. As a matter of comparison, Intuit's market cap is currently USD$33 billion, trading on a historical PE of 33.