October 5, 2022

Robotic Notes

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Zuora narrowly beats earnings expectations

2 min read

Shares of cloud subscription services company Zuora Inc. rose slightly in late trading today, in line with quarterly earnings that narrowly beat analyst expectations.

Zuora also announced today that it had received a $ 400 million strategic investment from Silver Lake. The investment is said to strengthen Zuora’s leadership position and empower the company to accelerate growth, including potential targeted acquisitions to expand its quote-to-revenue product.

Redwood City, California-based Zuora reported a loss before certain costs such as stock compensation of $ 1.5 million or a penny a share in the quarter ended Jan. 31, compared with an adjusted loss of $ 2 million, or two cents per share, in the same quarter last year. Revenue in the quarter rose 14%, to $ 90.7 million, up 14%.

Analysts had predicted an adjusted loss of two cents a share on revenue of $ 86.54 million.

Net cash flow in the quarter totaled $ 10.4 million more than tripled from a year ago, and cash and investments came in at $ 215.4 million as of Jan. 31.

Highlights in the quarter included customers with an annual contract value equal to or greater than $ 100,000 hitting 757, up from 676 the year prior. Zuora’s dollar-based retention rate increased to 110% in the quarter, an improvement on the 100% it reported in fiscal 2021.

Customers using Zuora processed $ 21.3 billion in transaction volume, up 25% year-over-year. New customers included Gusto, Luxottica Group PIVA, HMD Global Oy, Oura Health Ltd. and Carta Inc.

For the full fiscal year 2022, Zuora reported an adjusted loss of $ 11.3 million, or nine cents per share, on revenue of $ 346.7 million, up 14% year-over-year.

“After a transformational year, we are now in a fantastic position,” Zuora Chief Executive Officer Tien Tzuo (pictured) said on the company’s analyst call.

Looking ahead, Zuora predicted an adjusted loss of one to two cents in the first quarter on revenue of $ 77 million to $ 78 million. For the full fiscal year, the company predicts an adjusted loss of three to seven cents on revenue of $ 338 million to $ 340 million.

A slightly better-than-expected earnings beat is reflected in Zuora’s share price, which rose more than 2% after the bell.

Photo: SiliconANGLE

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