When 2017 opened, Xiaomi was getting over the bump in the road that 2016 had been for the company. Like so many technology companies, Xiaomi succeeded in generating a lot of buzz when they first launched and translated that early success into positive financial results. As they transitioned out of their start up phase though, things got a little rougher and Xiaomi saw sales and revenues flatten out. The theme for 2017 for Xiaomi was to regain a solid footing, build on their previous success, and start to position the company for longer term staying power. In recent reports to bankers, Xiaomi officials indicate the company has exceeded revenue targets for the year suggesting the strategy is working.
According to sources with knowledge of what was reported, Xiaomi is letting its banking partners and supporters know that it has exceeded 2017 revenue targets by approximately 18 percent. That goal had been set at around $15 billion and parties expect the final result to come in at around $17 to $18 billion.
Those sales numbers are expected to translate into net profit of around $1 billion for 2017. Projections are for profits to double in 2018 to around $2 billion.
All of this good news and the path that Xiaomi appears to be on may setup the company for an IPO in 2019 based on a company valuation of at least $100 billion. During a funding round in 2014 the company was valued at $46 billion.
At least one industry watcher thinks Xiaomi may want to accelerate those plans to take advantage of their positive financial position. Kiranjeer Kaur with IDC notes that “this is a good time for them to list because right now they are on a roll. If they get a good valuation, they will get it now.” Kaur notes that Xiaomi will need to focus on retaining customers and “make sure that users upgrade to higher-end Xiaomi” devices instead of switching to other brands in order to build on the momentum they have.