Ann: H1 FY23 Investor Presentation, page-27

Time for a few dot points from what I have gathered from different analysts and soph investors, also comments on some things mentioned here;

• Churn for xero is very low, VERY low, not sure where you guys are pulling that narrative. Its one of the best parts of their business. They lost 12k of their over 2m AU/NZ customers and added 163k (net 150k). This isnt a worry for the market. In fact, pricing power for xero is one of their biggest draws and that has been proven with no change in churn.
• The market did not like the US/UK subscriber numbers. AU/NZ is extremely profitible and expansion outside au/nz is, to the market, eating a lot of capital returns now.
• The market did not like that, again, another aquisition (waddle) has been mostly written off costing them some $26m to the bottom line this period, this is more wasted money.
• Revenue increase was fantastic and proof of pricing power was great, but the market already showed last results they were looking for that to flow to the bottom line, and it did the opposite - confidence killer.
• The new CEO is not known for cost controls, she is known for growth - more of the same, not a confidence builder either.
• Macro environment doesnt like debt, its very expensive, they have drawn more of their term debt, 218m for the period.
• Nobody really talking about doubts around the product, lots of positivity still
• No doubts on customer base sticking around and positivity through upcoming recession

I think buying <$65 isnt bad, but its gotta depend on your timeframe and risk tolerance. It could easily hit the 50s.