Xiaomi surges past 2017 revenue target setting up for IPO bid

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.

source: Reuters

About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, an LG G3, and a Motorola Moto X Pure Edition along with a Samsung Galaxy Tablet 10.1. He currently uses a Samsung Galaxy S8 and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active an active runner usually training for his next marathon, owns a Mazda MX-5 Miata, and plays Dungeons & Dragons. Jeff has three grown kids and a golden retriever.