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Xero Limited (AU:XRO)
ASX:XRO
Holding AU:XRO?
Track your performance easily
Earnings Data
Report Date
May 15, 2025TBA Not Confirmed
Period Ending
2025 (Q4)Consensus EPS Forecast
0.98Last Year’s EPS
0.9Same Quarter Last Year
Strong Buy
Based on 13 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:May 15, 2019
|% Change Since: 11.42%
|Next Earnings Date:Nov 08, 2018
Earnings Call Sentiment|Positive
The earnings call reflects a positive sentiment due to strong financial results, significant growth in revenue and profitability, and successful strategic initiatives. However, challenges remain in certain markets, such as Canada, and there are elevated costs associated with share-based payments. Overall, the highlights significantly outweigh the lowlights.Company Guidance
During the Xero Limited Half Year 2025 Results Conference Call, significant financial metrics were highlighted, showcasing strong performance and strategic execution. Xero reported a 25% increase in revenue, reaching $996 million, with adjusted EBITDA rising by 52% to $312 million. This resulted in an impressive Rule of 40 outcome of 43.9%, up by 10.3 points year-over-year. The company experienced 10% subscriber growth, adding 401,000 new subscribers, and achieved an 11% expansion in ARPU. Regional contributions were strong, with Australia and New Zealand showing a 24% revenue increase, while the UK and US markets also contributed significantly to the 25% revenue growth. Additionally, Xero's platform revenue accelerated to 28%, driven by improved payments performance. The company maintained a free cash flow margin of 21% and improved its balance sheet with a $692 million increase in cash. Looking forward, Xero aims to maintain its operating expenses at around 73% of revenue for FY '25, focusing on strategic investments in product development and marketing to drive future growth.Strong Revenue and Profitability Growth
Revenue grew by 25% to $996 million, with adjusted EBITDA increasing by 52% to $312 million. This resulted in a Rule of 40 outcome of 43.9, which is up by 10.3 points year-over-year.
Significant Subscriber and ARPU Growth
Subscriber growth was up 10% year-over-year, with 401,000 new additions. ARPU expanded by 11%, driven by price changes, better payments revenue, and some mix benefits.
Regional Contributions to Revenue Growth
Australia saw a 27% revenue growth, while the U.K. and the U.S. contributed to a 25% revenue increase. Subscriber growth in these regions was 11% and ARPU grew by 12%.
Successful Strategic Execution
Completion of long idle subscriptions removal (160,000 subscriptions removed) and strategic investments in AI and mobile technologies to drive future growth.
Improved Payments and Platform Revenue
Payments revenue saw a 65% growth, and platform revenue grew by 28%, contributing 11% of operating revenues.
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AU:XRO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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AU:XRO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 13, 2024 | AU$161.55 | AU$171.00 | +5.85% |
| May 22, 2024 | AU$124.00 | AU$134.84 | +8.74% |
| Nov 08, 2023 | AU$114.72 | AU$100.47 | -12.42% |
| May 17, 2023 | AU$94.10 | AU$102.49 | +8.92% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Xero Limited (AU:XRO) report earnings?
Xero Limited (AU:XRO) is schdueled to report earning on May 15, 2025, TBA Not Confirmed.
What is Xero Limited (AU:XRO) earnings time?
Xero Limited (AU:XRO) earnings time is at May 15, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Xero Limited stock?
The P/E ratio of Xero Limited is N/A.
What is AU:XRO EPS forecast?
AU:XRO EPS forecast for the fiscal quarter 2025 (Q4) is 0.98.
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