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.

May 23, 2024 – 1.37pm

Email LinkedIn Twitter Facebook

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

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.

James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine.