Winkler on a winner at Xero
II IS more than most of us can expect to make in a lifetime, but entrepreneur Craig Winkler's worth has risen a stunning $20 million just over the past week alone.
Mr Winkler made his first $100 million from accounting software company MYOB and then put part of his gains into Xero, a start-up New Zealand rival, when he sold.
With an internet cloud-based product, it claims to have a lower cost offering than its competitors.
Xero listed on the stock exchange in October. Since then its share price has nearly doubled, surging 7 per cent on Friday to hit a record $8.60, before closing up 49¢ at $8.48. It first traded on the ASX around $4.50.
It listed on the New Zealand Stock Exchange in 2007.
The rally in Xero's share price has more than doubled Mr Winkler's worth, even though the company is yet to make a dollar.
He holds 16 million Xero shares after selling 2.5 million shares at $NZ6 in December, only to watch the share price surge. Part of the reason for the rally in recent weeks has been a series of product promotions in Australia, coupled with optimism about the incorporation of new product features.
But with Xero's market valuation topping $1 billion on Friday, it seems investors are pricing in success not just in Australia, but in the US market as well, where it has established a presence.
Last month Xero said monthly revenue was running at $NZ4 million ($3.2 million), up from December quarter revenue of $NZ10 million, with revenue in the year to March to double from the $NZ19 million booked last year.
Xero is challenging market incumbents MYOB and Reckon in the Australian market.
Since selling out of MYOB, Mr Winkler has spent most of his time working in the not-for-profit sector.