Xero

2023 - 1 - 9

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Image courtesy of "Motley Fool Australia"

The Xero share price tumbled 50% in 2022. Can 2023 bring a ... (Motley Fool Australia)

The Xero Limited (ASX:XRO) share price lost half its value in 2022. Is the party over or can the ASX tech share start a turnaround?

With a global addressable market, I think Xero still has a very long growth runway. That means most of the new revenue can be invested in growth efforts, such as marketing and software development. I don’t think its outlook has changed much despite everything that has happened. Over the long term, this can really pay off because Xero had a subscriber retention rate of over 99% in FY22 and the first half of FY23. Indeed, it was a tough year for many [ASX tech shares](https://www.fool.com.au/investing-education/technology/) as valuations plunged. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

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Image courtesy of "The Australian Financial Review"

Accounting software firm Xero's subscriber growth to slow thanks to ... (The Australian Financial Review)

Xero will be forced to rely more on its home markets of Australia and New Zealand for subscriber growth in the next few years, despite them being more ...

She is best known for co-founding Yodlee in the late 1990s, but has also worked at Merrill Lynch and Google. In the last year, Xero shares have sunk more than 43 per cent, as investors rotated away from loss-making tech companies. We remain confident in our ability to capture the long-term opportunity. The UK is Xero’s second-largest market, behind Australia. Connect with Yolanda on [[email protected]](mailto:[email protected]) Xero could be forced to rely more on its home markets of Australia and New Zealand for subscriber growth in the next few years, following a UK legislative change that is tipped to put a handbrake on growth in the region.

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