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. ...

Sundry Photography The sentiment in the market right now is undoubtedly cautious. Amid the backdrop of higher interest rates and an uncertain macro recovery, the best strategy is to lean in more on "growth at a reasonable price" stocks, allocating more of your portfolio toward value-oriented tech. And while these names are far from exciting, companies like Zuora (NYSE:ZUO) are a perfect long-term hold that will have little correlation to how the broader markets do. After years of lagging behind its tech pee ...

Financial Data and Key Metrics Changes - In Q1, subscription revenue was $99 million, up 10% year-over-year, at the high end of the guidance range [11] - Non-GAAP operating income was $18.6 million, representing a 17% operating margin, a quarterly record [11][31] - Adjusted free cash flow reached an all-time high of $31.4 million, significantly up from $13 million in Q1 of the previous year [11][34] - Dollar-based retention rate (DBRR) ended at 104%, down 2 percentage points quarter-over-quarter and 4 percentage points year-over-year [32] Business Line Data and Key Metrics Changes - Professional services revenue was $10.8 million, a decrease of 19% year-over-year, representing 10% of total revenue [21] - Non-GAAP subscription gross margin improved to 81%, up nearly 100 basis points year-over-year [21] - Non-GAAP professional services gross margin was negative 14%, declining from negative 3% in Q1 of last year [22] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) ended at $581 million, growing 15% year-over-year [33] - Non-current RPO was up 23% year-over-year to $256 million [33] - The company closed two deals with annual contract values (ACV) of $500,000 or more, down from four in Q1 of last year [34] Company Strategy and Development Direction - The company is focused on a strategy of total monetization, integrating multiple business models to maximize value [14][17] - The acquisition of Togai is seen as a key step in enhancing capabilities for usage-based models, driven by trends in GenAI and IoT [17][72] - The company aims to maintain a modular approach to its product offerings, allowing customers to start with specific services and expand over time [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the enterprise customer base and the potential for expansion despite macroeconomic headwinds [6][19] - The company anticipates growth to accelerate in the second half of the year, maintaining guidance for annual recurring revenue (ARR) growth between 8% and 10% [23][40] - Management noted that the current macro environment has led to longer sales cycles and fewer transformational deals, but they remain optimistic about pipeline development [19][66] Other Important Information - The company ended the quarter with $547 million in cash and cash equivalents, a sequential increase of $33 million [35] - Guidance for Q2 includes subscription revenue of $101 million to $102 million and total revenue of $111.5 million to $113.5 million [36] - The company expects to maintain free cash flow guidance of $80 million or greater for the full year [37] Q&A Session Summary Question: Can you help us understand the level of visibility you have right now into demand? - Management indicated that there is still good visibility in the pipeline, but companies are cautious about large deals, particularly those in the seven-digit range [25][62] Question: What gives you confidence in maintaining DBRR and retention metrics? - Management highlighted the stickiness of their product and the strong performance of their installed base, which provides visibility into future performance [49][50] Question: How ready is the Togai solution for market integration? - Management expressed confidence in Togai's technology and its readiness to be integrated into cross-sell efforts, noting positive responses from customers [75][79] Question: What are the capital allocation plans moving forward? - Management confirmed a commitment to maintaining free cash flow guidance while absorbing costs from the Togai acquisition, with a focus on driving profitability [98][100]

Exhibit 99.1 Zuora Reports First Quarter Fiscal 2025 Results Operating cash flow grew to $32.9 million compared to $14.6 million last year Adjusted free cash flow grew to $31.4 million compared to $13.0 million last year GAAP operating margin increased 16 percentage points year-over-year Non-GAAP operating margin increased 11 percentage points year-over-year Subscription revenue grew 10% year-over-year Redwood City, Calif. – May 22, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern bus ...

Zuora (ZUO) closed the most recent trading day at $9.95, moving +0.91% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.02%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 2.03%.The enterprise software company's shares have seen an increase of 8.11% over the last month, surpassing the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 3.15%.Analysts and investors alike will be keeping a close eye on the perform ...

In the latest market close, Zuora (ZUO) reached $9.75, with a +1.25% movement compared to the previous day. This change outpaced the S&P 500's 1.2% gain on the day. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.59%.The enterprise software company's shares have seen an increase of 8.81% over the last month, surpassing the Computer and Technology sector's loss of 6.83% and the S&P 500's loss of 4.16%.The investment community will be closely monitoring ...

Zuora is reportedly considering a sale and other options after more than one company expressed interest in acquiring it.The subscription management software provider is working with an investment bank to conduct discussions with potential buyers, Reuters reported Wednesday (April 17), citing unnamed sources.There is no certainty that a deal will be reached, according to the report.Zuora did not immediately reply to PYMNTS’ request for comment.The company’s board has formed a special committee of independent ...

Zuora (ZUO) closed the latest trading day at $8.47, indicating a +1.19% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.03%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq increased by 0.12%.Heading into today, shares of the enterprise software company had lost 7.72% over the past month, lagging the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9% in that time.The investment community will be clos ...

Zuora (ZUO) shares ended the last trading session 5% higher at $8.80. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.7% loss over the past four weeks.ZUO is benefiting from an expanding clientele that's driving subscriptions growth.This enterprise software company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expec ...