Xero on track to list on US stock exchange - Drury

Xero chief executive Rod Drury. Photo / Dean Purcell

Xero chief executive Rod Drury says the company will get itself to a position this financial year where it can list on a US stock exchange "when the timing is deemed right".

The cloud-accounting software company is forecasting subscription revenue growth of 80 per cent for this financial year, Drury said today.

This is similar to the targets that it predicted and met in the 2014 financial year. Subscription revenue was $66.6 million in the year ended March 31.

Xero is hosting its annual meeting in Wellington today and has released its presentations for this to the New Zealand stock exchange.

"During the year we will pass through $US100 million in annualised committed monthly revenue positioning us for a US listing when the timing is deemed right," Drury said in the presentation.

Xero chairman Chris Liddell also mentioned a US listing in his address at the annual meeting.

"As our business continues to develop, a logical step for Xero would see us list on a US exchange. While this will be dependent on internal and external conditions at the time, this would be a significant milestone in becoming a truly global company. We should all be proud that Xero, as a New Zealand company, is playing on the international stage at this level," he said.

Xero has 334,000 customers today, Drury said in his presentation. That's up 50,000 from March 31 this year. Xero shares were trading this afternoon at $23.70, down 0.59 per cent.