Zuora (ZUO) closed the last trading session at $8.86, gaining 0.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $11.86 indicates a 33.9% upside potential. The mean estimate comprises seven short-term price targets with a standard deviation of $1.95. While the lowest estimate of $10 indicates a 12.9% increase from the current price level, the most optimistic analyst expects the s ...

agrobacter/iStock via Getty Images Investment thesis Zuora (NYSE:ZUO) is a leading software provider for businesses to manage their subscription-based services. The company's dominant position is highlighted in the image below, taken from the 2024 Gartner Magic Quadrant for Recurring Billing Applications. According to a study by Juniper Research, the subscription-based economy that the company serves is valued at $593 billion and is expected to grow at a 14% CAGR through 2028. In recent years, Zuora has als ...

I II Sundry Photography Once a tech company has entered into the penalty box, it can be very difficult to get out. Such is the case with Zuora (NYSE:ZUO), the software platform that helps fellow subscription-based revenue companies manage their billings. Despite a red-hot stock market fueled by the prospect of interest rate cuts, shares of Zuora have only been about flat year to date, vastly underperforming the S&P 500 and other tech names. It's in these value names, however, that some of the most prudent i ...

Zuora (ZUO) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a c ...

Shares of Zuora (ZUO) have gained 0.8% over the past four weeks to close the last trading session at $8.91, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $11.86 indicates a potential upside of 33.1%. The mean estimate comprises seven short-term price targets with a standard deviation of $1.95. While the lowest estimate of $10 indicates a 12.2% increase from the current price l ...

Zuora (NYSE:ZUO) just reported results for the second quarter of 2025. Zuora reported earnings per share of 19 cents. This was above the analyst estimate for EPS of 9 cents. The company reported revenue of $115.40 million. This was 3% better than the analyst estimate for revenue of $112.03 million. InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, ...

Financial Data and Key Metrics - Subscription revenue in Q2 was $104 million, up 9% year-over-year [4] - Non-GAAP operating income reached $25.6 million, representing a 22% operating margin, a quarterly record [4] - Adjusted free cash flow was $12.2 million, up from $4 million in the previous year [4][19] - The Rule of 40 metric was achieved at 31, ahead of the full-year goal [4] - Total RPO (Remaining Performance Obligations) ended at $577 million, growing 14% year-over-year [17] - ARR (Annual Recurring Revenue) grew 7% in Q2, reaching $412.3 million [19] Business Line Data and Key Metrics - Advanced Consumption Billing was one of the fastest-growing products in Q2, driven by AI feature rollouts [10] - Zuora Payments' Smart Retry capability helped recover over $120 million in lost revenue, a 40% year-over-year increase [12] - Half of the new logo deals in Q2 included both Zuora Billing and Zuora Revenue [6] - Over $1 million in ACV (Annual Contract Value) deals came from the existing install base, indicating the success of the land-and-expand strategy [7] Market Data and Key Metrics - More than half of the deals with ACV of $500,000 or more were influenced by system integrator (SI) partners [8] - The media vertical showed strong growth, with investments in AI-powered paywall solutions through the acquisition of Sub(x) [11][44] - The transportation and logistics sector, including an $80 billion revenue customer, adopted usage-based billing models, indicating broader industry adoption beyond tech companies [7] Company Strategy and Industry Competition - The company's vision of "total monetization" focuses on enabling customers to adopt hybrid business models, including subscriptions, consumption-based pricing, and one-time transactions [9][10] - Strategic acquisitions like Togai and Sub(x) have strengthened Zuora's product portfolio, particularly in advanced consumption billing and AI-driven paywall solutions [10][11] - Zuora was recognized as a leader in Gartner's Magic Quadrant for Recurring Billing Applications and by ISG Research in Subscription Management categories [13] Management Commentary on Operating Environment and Future Outlook - The company expects the challenging macroeconomic environment to continue, with elongated sales cycles and deal scrutiny [20] - Management remains confident in the land-and-expand strategy, with a robust pipeline of opportunities within the install base [22] - The company is committed to achieving a Rule of 30 run rate by the end of fiscal 2025, focusing on balanced growth and profitability [22] Other Important Information - Zuora released its latest Global Impact Report, committing to the Science Based Targets Initiative and setting near-term and long-term greenhouse gas reduction goals, including reaching net-zero [14] - The company ended Q2 with $543 million in cash and cash equivalents, a slight decrease due to the Togai acquisition [20] Q&A Session Summary Question: Total Monetization Strategy and Future Financial Impact [24] - The company views total monetization as an opportunity to expand beyond traditional subscription models, incorporating consumption-based pricing, one-time fees, and hybrid models [25] Question: ARR and NRR Guidance Revisions [26] - The company adjusted ARR growth expectations to 6% due to deal timing uncertainties and a cautious outlook on the macroeconomic environment [26][36] Question: Competitive Landscape for Canva Deal [28] - Canva chose Zuora over competitors due to its ability to handle complex billing and revenue needs across multiple business lines, including B2C and enterprise offerings [28][29] Question: Payment Processor Revenue Upside [30] - The upside in payment processor revenue was due to a catch-up from a previous audit and adjustments to future agreements, with expectations of ongoing revenue growth [30][31] Question: Pre-IPO Customer Pipeline [33] - Pre-IPO customers are focusing on future-proofing their systems, with many opting for both Zuora Billing and Revenue solutions in preparation for public offerings [33][34] Question: Pricing Trends and Market Sensitivity [39] - The company has not seen significant pricing pressure, with customers willing to pay for innovations and added value rather than flat price increases [40] Question: Media Vertical and AI Investments [43] - The media vertical is a key focus, with AI-driven paywall solutions gaining traction among publishers and streaming companies [44][45] Question: Togai Integration and AI Opportunities [55] - The integration of Togai has enhanced Zuora's Advanced Consumption Billing capabilities, positioning the company to capitalize on the growing demand for AI-driven consumption-based pricing models [56][57] Question: Revenue Share from Payment Processors [58] - The company sees significant potential to monetize payment processing further, given the $100 billion in annual payment volume flowing through its systems [59][60]

Zuora (ZUO) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 90%. A quarter ago, it was expected that this enterprise software company would post earnings of $0.07 per share when it actually produced earnings of $0.11, delivering a surprise of 57.14%. Over the last four quarters, the c ...

Summary I acknowledge the fact that macro continues to be a headwind to ZUO growth, and this is well reflected in ZUO's inability to accelerate the number of customer net adds sequentially (still pressured at below 10). However, I think the market continues to fail in pricing despite a growth recovery in the coming years. My take is that more businesses are going to pivot their business model or incorporate subscriptions into their business strategy as consumers are demanding them. Take the retail subscript ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _____________________________ FORM 10-Q _____________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-38451 _____________________________ Zuora, Inc. ...