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XERO CEO: EXECUTING WELL IN U.S Featured

Rod Drury, Xero On the heels of hitting its lowest stock price in three years recently, Xero CEO Rod Drury cheerily told a radio interviewer that the company is executing well in the U.S. The stock hit $13 per share early this month, down from its all time high of $45 (New Zealand) in March 2014. Drury told RadioLive interviewer Andrew Patterson on September 6 the company will get to well over the $100 million U.S. when the year ends March 31. That's the threshold viewed as necessary for an American IPO.

Drury reiterated Xero's position that an offering won't be done this fiscal year. Drury said his company has enough cash to get the break-even without an IPO, but he also talked about raising $300 million "or so" in the U.S. at some point. Patterson hammered Drury on whether Xero can meet its goals and investor expectations for growth in this country. "I don't know where this idea [comes from] that we are not executing well in the U.S.," Drury said. "The only speed bumps we have had is when we haven't had the right people." These include an North American CEO who lasted six months and a global CFO based in the U.S. who stayed eight weeks. Drury said the company's loss will rise for fiscal 2016, but added, that Xero has "three years worth of cash." The interview apparently caused some concern after Drury was quoted in a publication because on September 10, the cloud software company filed a clarification of the execs comments with the Australian stock exchange. That included the statement Xero has not provided guidance about a forecasted loss for the current year or on a break-even point but that Drury was talking about cash burn. The filing stated "Xero is focused on containing its full financial year cash outflow to similar levels to Xero's prior financial year."

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