Winkler on a winner at Xero
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.
Frequently Asked Questions about this Article…
Craig Winkler is an entrepreneur who made his first $100 million from accounting software company MYOB. After selling out of MYOB he invested part of his gains into Xero, and the recent rally in Xero's share price boosted his worth by a reported $20 million in just over a week.
Xero is a cloud-based accounting software company that positions itself as a lower-cost offering compared with incumbents such as MYOB and Reckon. The company focuses on internet cloud delivery and has been promoting new product features and promotions, particularly in Australia.
Xero listed on the ASX in October (after listing on the New Zealand Stock Exchange in 2007). Since the ASX listing its share price has nearly doubled — it surged 7% on a recent Friday to a record high of $8.60 and closed up 49¢ at $8.48, after first trading on the ASX around $4.50.
According to the article, Xero is 'yet to make a dollar,' meaning the company was not profitable at the time of reporting despite strong revenue growth and share price gains.
The article reports that Craig Winkler holds 16 million Xero shares after selling 2.5 million shares at NZ$6 in December, a sale he later watched as the share price surged.
Xero said monthly revenue was running at NZ$4 million (about $3.2 million), with commentary that this was up from December quarter revenue of NZ$10 million. The company also expected revenue in the year to March to double from the NZ$19 million booked the prior year.
The article cites a series of product promotions in Australia and optimism about incorporating new product features as drivers of the recent rally. It also notes investors appear to be pricing in success not just in Australia but in the US market, where Xero has established a presence.
After the rally the article reports Xero's market valuation topped $1 billion. For everyday investors, that signals strong market confidence and high expectations for Xero's growth, including expansion in Australia and the US, despite the company not yet being profitable.
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