Chanticleer
The ASX tech giant surging without jumping on gen AI bandwagon
ASX companies are scrambling to show they too have a generative artificial intelligence halo. But one of our hottest tech stocks is being far more measured.
About two hours after Nvidia sent investors around the world into a fresh frenzy over artificial intelligence, Australasian accounting software group Xero delivered an impressive earnings beat thanks to a decidedly old-school tech rule.
Developed in about 2015, the rule of 40 says that a software-as-a-service company should aim to deliver annual revenue growth and an annual free cash flow margin (free cash flow divided by sales) that adds up to 40.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Technology
Fetching latest articles