October 5, 2022

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Zuora narrowly beats expectations in its quarterly earnings report

2 min read

Shares in cloud subscription services company Zuora Inc. were up slightly in late trading, in line with its quarterly earnings report that narrowly beat analyst expectations.

For the quarter ending Jan. 31, Zuora reported a non-generally accepted accounting principles loss of $ 1.5 million or one cent per share. Zuora reported a non-GAAP loss of $ 2 million or two cents per share in the same quarter last year. Revenue in the quarter came in at $ 90.7 million, up 14% year-over-year.

Analysts had predicted a non-GAAP per-share loss of two cents on revenue of $ 86.54 million.

Net cash flow in the quarter totaled $ 10.4 million compared to $ 3.1 million at the same time last year. 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, compared to 100% 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 a non-GAAP loss of $ 11.3 million or nine cents per share on revenue of $ 346.7 million, the latter up 14% year-over-year.

“After a transformational year, we are now in a fantastic position,” Zuora Chief Executive Officer Tien Tzui (pictured) said in the company’s investor call. “We’ve got what I believe is the best management team in the business, who along with our ZEOs are executing on our plan, and we are accelerating.”

Looking forward, Zuora predicted a non-GAAP EPS loss of one cent to two cents in the first quarter on earnings of $ 77 million to $ 78 million. For the full fiscal year, the company predicts a non-GAAP EPS loss of three cents to seven cents on revenue of $ 338 million to $ 340 million.

Along with announcing its earnings, Zuora also announced 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.

A slightly better-than-expected earnings beat is reflected in Zuaro’s share price. Shares in the company were up 3.9% after the bell to be sitting at $ 16 as of 8 pm EST.

Photo: SiliconANGLE / theCUBE

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