Xero Limited (ASX: XRO) has achieved profitability for the second year in a row, despite higher operating expenses. The company has shifted its focus from growth to profitability, in line with market expectations.

Xero's strategy to increase average revenue per subscriber rather than solely expanding its subscriber base reflects its change in focus. The company is also expanding its product offerings with innovative solutions, such as AI-driven tools and a tap-and-go payment system for small businesses in Australia and the UK. These initiatives not only enhance Xero's product portfolio but also position the company for future growth in a competitive technology landscape.

For investors, Xero offers stable growth and disciplined cost management. While some may prefer to wait for a longer track record of profitability, the company's trajectory suggests significant upside potential. The launch of new products and its strong market position indicate that Xero is well-prepared to continue its growth journey, making it an attractive option for many investment portfolios.