(Bloomberg) -- Xero Ltd., which offers accounting software for small businesses, sees opportunities for further growth as countries push the digitization of functions such as payroll and tax, Chief Executive Officer Sukhinder Singh Cassidy said.
“We participate in a sector that globally has low penetration – small businesses digitizing software services,” Cassidy said in an interview with Bloomberg TV on Friday. “As countries continue to push digitization, that’s the biggest tailwind in our business,” she said.
Xero on Thursday reported first-half net income jumped 76%. Full-year profit could rise 70% to around NZ$300 million ($175 million), according to Bloomberg Intelligence analyst Matt Ingram.
The stock is up about 52% this year, lifting the company’s market value to A$26 billion ($17 billion).
However, Xero is unlikely to start paying dividends anytime soon, Cassidy said.
“I don’t think we are a dividend story, we are a growth story,” she said. “And our most important opportunity is to keep allocating capital to driving profitable growth.”
--With assistance from Paul Allen.
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