News: XRO Xero To Buy Workforce Management Platform Planday, page-6

patiencetowin's comments are a bit extreme but the point is that looking at xero on any profit or ebitda multiple is not doing them justice or completely missing the point, seeing as they are not trying to make a profit. they are reinvesting all their profits into themselves to grow revenue as they are in a situation where they could grow to dominate the world in their market and it's verticles such as workforce management (see today's announcement). they actually have a very high gross margin and the ability to be extremely profitable if they so choose but they have a very longterm mindset. They have the best accounting software product in the world, are naturally incredibly sticky as this software is fundamental to the operation of their customers businesses and they are making it stickier all the time by adding new products like this one which will bury their software deeper into the everyday running of their customers businesses. Eventually they will start to run out of headroom to grow revenue, market share, new verticles and the free cash flow will be immense.

I missed the conference call today as I was at the gym but really interested to hear from anybody who was on it as to any comments they made on european expansion. From the announcement "Planday currently operates [in] Denmark, Norway, Sweden, the UK, Germany and France." UK is currently Xero's most valuable market, these other European markets could also be very valuable. Are they considering using Planday's network to cross-sell xero's accounting software into these geographies???