I am a long term holder of xero (IRL) and am contemplating where to go with it. But I wanted some straw people help.

I wanted to create a discussion on what the future of Xero looks like in terms of short, medium and long term in regards to subscription growth and how this might cause a significant re rating in price. And how do you assign a probability to these situations.

In my view.

I’m weighing up the fact that we have a dominant AUS/NZ segment, profitable with large margins and recently generating significant positive cash flow against the growth opportunity in the UK with slowing subscriber rates.

I am considering the long term hold value prop in regards to this and am wondering if I cash out out now, or continue playing the long game.

My short term worry is that if subscribers continue to slow, would the share price fall further….. or has this now been re rated as prices have come back around $20 per share. Weighing this against the economic backdrop of tougher business conditions which maybe could explain some of the slow down. If interest rates were to stabilize or lower, coupled with the growth opportunity in the UK….. is there big future growth potential to be caught long term.

Interested to hear everyone’s thoughts on this.

edit. I haven’t mentioned competition. Which is a huge factor. Just wanting to kick off the discussion ????