Xero's share price has tumbled by about 15 per cent this week but chief executive Rod Drury says the "business is firing" and he doesn't know what is behind the drop.
Shares in the cloud accounting software company were down 6.28 per cent shortly after 1.30pm and trading at $20.15 each.
This is less than half the record price of $44.98 which Xero shares hit in March.
Drury did not know why the shares were falling and said he had just returned from San Francisco where he got good feedback about Xero's growth forecasts.
The company is forecasting subscription revenue growth of 80 per cent for this financial year, Drury said at the company's annual meeting last month.