I agree that it's hard for a competitor to come in instantly and...

I agree that it's hard for a competitor to come in instantly and gain traction. It's not like people change their accounting software every year. It's a great product to be selling. Both Xero and Intuit have done exceptionally well. They could pullback on R&D, product development and acquisitions, but I feel like they need to spend this money to maintain a leadership position. My issue with Xero is more to do with the wider macro environment. Once interest rates normalise and stimulus is tapered lots of companies will settle at more realistic valuations imo. Xero also gets some of its premium from being one of the larger and more reliable tech stocks on the ASX. The other 'WAAAX' stocks have all underperformed of late, except Wisetech, but they've had their own issues.