XROLF - Xero Limited: Price Competition And New Convertible Notes In The Spotlight
- Xero's earnings surged from NZD1.3 million in 1H FY 2020 to NZD34.5 million in 1H FY 2021, but its financial performance is not as good as what headline numbers suggest.
- Xero Limited's revenue and subscriber growth slowed in 1H FY 2021, which is likely attributable to both the negative impact of COVID-19 and increased price competition.
- Xero Limited's new convertible notes increase the company's available liquidity to approximately NZD1.3 billion, which suggests that it's more likely to execute on significant acquisitions in the near future.
- Xero Limited trades at consensus forward FY 2022 enterprise value-to-revenue and EV/EBITDA multiples of 22.6 times and 86.3 times, respectively.
For further details see:
Xero Limited: Price Competition And New Convertible Notes In The Spotlight