Group 1 - The proposed buyout of Zuora, Inc. by Silver Lake and GIC is valued at $1.7 billion, with a deal price of $10 per share [1][2] - Zuora's largest shareholder is Silver Lake, while founder and CEO Tien Tzuo controls approximately 40% of the company's voting power [1] - Wall Street analysts have set a high stock price target of $15 per share and an average price target of $11.83 per share, indicating concerns about the adequacy of the $10 per share offer [2] Group 2 - Julie & Holleman LLP is investigating potential conflicts of interest in the acquisition deal, as influential shareholders may have misused their authority [2] - The firm specializes in shareholder litigation, including mergers and acquisitions, and has secured hundreds of millions of dollars for aggrieved companies and their shareholders [3]

Zuora (ZUO) shares have appreciated 11% in the trailing 12 months, underperforming the broader Zacks Computer & Technology sector's return of 38.5% and the Zacks Internet Software industry's appreciation of 40.7%. ZUO shares have been facing macroeconomic challenges that have resulted in longer sales cycles and fewer transformational deals. Annual Recurring Revenue (ARR) growth and Dollar-based Retention Rate (DBRR) have been negatively impacted by higher customer churn. However, it has been benefiting from ...

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 ...