After reaching an important support level, Zuora (ZUO) could be a good stock pick from a technical perspective. ZUO surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.ZUO ha ...

Zuora (ZUO) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this enterprise software company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate ...

Zuora (ZUO) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ZUO broke through the 50-day moving average, which suggests a short-term bullish trend.One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend. ...

Zuora (ZUO) closed the last trading session at $8.62, gaining 0.4% 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 $11.79 indicates a 36.8% upside potential.The average comprises seven short-term price targets ranging from a low of $8 to a high of $15, with a standard deviation of $2.48. While the lowest estimate indicates a decline of 7.2% from the current price level, the most op ...

Financial Data and Key Metrics Changes - Subscription revenue for Q4 was $100.2 million, growing 12% year-over-year, while full-year subscription revenue reached $383.4 million, representing a 13% increase year-over-year [85][41] - Non-GAAP operating income for Q4 was $15.9 million, exceeding guidance by nearly $3 million, with a non-GAAP operating margin of 14% for the quarter [87] - Adjusted free cash flow improved by $72 million year-over-year, totaling $44.3 million for the full year [84][91] Business Line Data and Key Metrics Changes - Professional services revenue decreased by 22% year-over-year in Q4, ending at $10.5 million, and for the full year, it was $48.3 million, a decline of 16% [54] - Non-GAAP professional services gross margin for Q4 was negative 10%, a decline of 215 basis points year-over-year [55] - The company processed $139.9 billion in billing transactions and payment volume, a growth of 10% year-over-year, and $212.8 billion in revenue volume, a growth of 12% year-over-year [59] Market Data and Key Metrics Changes - The trailing 12-month dollar-based retention rate (DBRR) decreased by two points, primarily due to one large churn [41][57] - Total remaining performance obligations (RPO) ended the year at $594 million, growing 19% year-over-year [58] - The company ended the quarter with 461 customers with a contract size at or above $250,000, up 30 year-over-year [58] Company Strategy and Development Direction - The company aims to balance growth and profitability, committing to the Rule of 40 framework, ending the year at 24% [36] - The strategy includes focusing on faster, lighter lands and adding new logos to the installed base, with a commitment to improving go-to-market efficiency [48][81] - The company plans to invest in consumption-based billing models as more technology companies adopt AI [50] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious outlook among enterprises regarding investments, anticipating continued scrutiny in the office of the CFO throughout fiscal 2025 [93][146] - The company experienced unexpected churn from two large customers, which impacted revenue growth expectations for the upcoming fiscal year [79][66] - Management expressed confidence in customer retention and product stickiness, highlighting that once customers go live, they tend to remain long-term [89][125] Other Important Information - The company announced a workforce reduction of approximately 8% to drive efficiency, incurring about $7 million in restructuring charges in Q4 [60][61] - For fiscal 2025, the company expects subscription revenue of $410 million to $414 million and total revenue of $451 million to $459 million [94] Q&A Session Summary Question: What types of customers are being added? - The company noted a diverse mix of new logos, including significant customers like Sony and Infor, with a focus on deals between $100k and $500k [64][73] Question: How much of the ARR growth deceleration is due to churn? - Management indicated that the two logo churns contributed to a point of headwind in both ARR growth and DBRR, with a cautious approach to larger deals [66][98] Question: What is the outlook for invoice volume growth? - The company expects invoice volume growth to normalize over time, with a focus on subscription and consumption-based billing models [116][143] Question: How is the company addressing go-to-market efficiency? - The company is making investments in marketing and pipeline capabilities, focusing on generating higher quality demand [109][135] Question: Will the two churned customers potentially return? - Management expressed optimism about the possibility of working with the churned customers again when their IT projects resume [112][138]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Fourth Quarter Fiscal 2024 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Financial%20Results) Zuora achieved strong top-line growth and significant profitability improvements in Q4 FY2024, with total revenue increasing 7% to $110.7 million, a substantial reduction in GAAP operating loss, and a shift to Non-GAAP net income of $16.7 million, alongside positive adjusted free cash flow of $14.6 million Q4 FY2024 Financial Highlights (vs. Q4 FY2023) | Financial Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Subscription Revenue | $100.2M | $89.5M | +12% | | Total Revenue | $110.7M | $103.0M | +7% | | GAAP Loss from Operations | $(17.2)M | $(99.7)M | +82.7% | | Non-GAAP Income from Operations | $15.9M | $2.2M | +623% | | GAAP Net Loss | $(20.8)M | $(107.9)M | +80.7% | | Non-GAAP Net Income (Loss) | $16.7M | $(5.8)M | N/A (Turned to profit) | | Adjusted Free Cash Flow | $14.6M | $(16.9)M | N/A (Turned positive) | [Full Year Fiscal 2024 Financial Results](index=1&type=section&id=Full%20Year%20Fiscal%202024%20Financial%20Results) Zuora reported balanced growth and significant profitability for full fiscal year 2024, with subscription revenue growing 13% to $383.4 million and total revenue increasing 9% to $431.7 million, alongside a 10 percentage point improvement in non-GAAP operating margin and positive adjusted free cash flow of $44.3 million Full Year FY2024 Financial Highlights (vs. FY2023) | Financial Metric | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Subscription Revenue | $383.4M | $338.4M | +13% | | Total Revenue | $431.7M | $396.1M | +9% | | GAAP Loss from Operations | $(64.4)M | $(187.5)M | +65.7% | | Non-GAAP Income from Operations | $47.5M | $2.5M | +1793% | | GAAP Net Loss | $(68.2)M | $(198.0)M | +65.6% | | Non-GAAP Net Income (Loss) | $45.9M | $(17.2)M | N/A (Turned to profit) | | Adjusted Free Cash Flow | $44.3M | $(27.8)M | N/A (Turned positive) | - The CEO highlighted that fiscal 2024 was a year of **balanced growth and profitability**, with an acceleration in new customer acquisition through a focus on '**smaller, faster lands**'[2](index=2&type=chunk) [Fourth Quarter Key Metrics and Business Highlights](index=2&type=section&id=Fourth%20Quarter%20Key%20Metrics%20and%20Business%20Highlights) Zuora's key operational metrics at the end of fiscal 2024 showed steady growth, with customers having an ACV of $250,000 or more increasing to 461 and Annual Recurring Revenue (ARR) growing 10% to $403.1 million, complemented by expanded partnerships and new customer acquisitions - Key operational metrics as of January 31, 2024: - **Customers with ACV ≥ $250k:** 461 (up from 431 YoY) - **Dollar-based Retention Rate (DBRR):** 106% (down from 108% YoY) - **Annual Recurring Revenue (ARR):** $403.1 million (up 10% YoY)[7](index=7&type=chunk) - Business highlights include an expanded partnership with Avalara to address complex e-invoicing mandates and new or expanded customer relationships with Toast, Infor, Sony Network Communications, TELUS Corporation, and The Associated Press[7](index=7&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) [First Quarter and Full Fiscal Year 2025 Guidance](index=3&type=section&id=First%20Quarter%20and%20Full%20Fiscal%20Year%202025%20Guidance) Zuora projects continued growth and enhanced profitability for fiscal year 2025, with full-year total revenue expected between $451.0 million and $459.0 million, Non-GAAP income from operations of $79.0 million to $81.0 million, and adjusted free cash flow of at least $80.0 million, alongside anticipated ARR growth of 8-10% and a Dollar-based Retention Rate between 104% and 106% Fiscal 2025 Guidance | Metric | Q1 FY2025 Guidance | Full Year FY2025 Guidance | | :--- | :--- | :--- | | Subscription Revenue | $98.0M - $99.0M | $410.0M - $414.0M | | Total Revenue | $107.8M - $109.8M | $451.0M - $459.0M | | Non-GAAP Income from Operations | $14.0M - $16.0M | $79.0M - $81.0M | | Non-GAAP Net Income per Share | $0.06 - $0.07 | $0.40 - $0.42 | | ARR Growth | - | 8% - 10% | | Dollar-based Retention Rate | - | 104% - 106% | | Adjusted Free Cash Flow | - | $80.0M+ | [Explanation of Key Metrics and Measures](index=3&type=section&id=Explanation%20of%20Key%20Metrics%20and%20Measures) [Key Operational and Financial Metrics](index=3&type=section&id=Key%20Operational%20and%20Financial%20Metrics) The report defines Zuora's key operational metrics, including Annual Contract Value (ACV) as expected subscription revenue, Dollar-based Retention Rate (DBRR) for existing customer revenue retention and growth, and Annual Recurring Revenue (ARR) as the annualized value of active subscription contracts - **Annual Contract Value (ACV):** The subscription revenue expected to be recognized from a customer over the next twelve months, assuming no changes to their subscriptions[11](index=11&type=chunk) - **Dollar-based Retention Rate (DBRR):** Calculated by dividing the current period's ACV from a cohort of customers by that same cohort's ACV from twelve months prior, including upsells, contractions, and attrition[12](index=12&type=chunk) - **Annual Recurring Revenue (ARR):** The annualized recurring value of all active subscription contracts at the end of a period, excluding professional services and contracts under one year[13](index=13&type=chunk)[14](index=14&type=chunk) [Explanation of Non-GAAP Financial Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Zuora uses non-GAAP financial measures to enhance consistency and comparability of operational performance by excluding items like stock-based compensation, amortization of acquired intangibles, and litigation costs, while also reporting revenue on a constant currency basis to isolate foreign exchange impacts - Zuora uses non-GAAP measures to assess performance, prepare budgets, and evaluate business strategies, believing they offer better comparability with past performance and industry peers[17](index=17&type=chunk) - Key items excluded from non-GAAP calculations include: - Stock-based compensation expense - Amortization of acquired intangible assets - Charitable contributions - Non-recurring shareholder litigation costs - Asset impairment charges - Acquisition-related transaction costs - Workforce reduction charges[18](index=18&type=chunk)[22](index=22&type=chunk) - Adjusted free cash flow is a non-GAAP measure calculated from GAAP operating cash flow, excluding acquisition-related costs and non-ordinary course litigation expenses, and including capital expenditures[19](index=19&type=chunk) [Consolidated Financial Statements (GAAP)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Zuora's consolidated statement of comprehensive loss for fiscal year 2024 shows total revenue of $431.7 million, a significant reduction in loss from operations to $64.4 million, and a narrowed net loss of $68.2 million compared to the prior year FY2024 vs. FY2023 Statement of Loss (in thousands) | Line Item | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Total Revenue | $431,661 | $396,087 | | Gross Profit | $284,687 | $242,858 | | Loss from Operations | $(64,407) | $(187,455) | | Net Loss | $(68,193) | $(197,970) | | Net Loss Per Share | $(0.49) | $(1.51) | - Total stock-based compensation expense for fiscal year 2024 was **$101.1 million**, an increase from **$96.4 million** in fiscal year 2023[28](index=28&type=chunk) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 31, 2024, Zuora's balance sheet reflects a stronger financial position with total assets growing to $823.8 million, supported by increased cash and short-term investments, despite a rise in total liabilities primarily due to long-term debt Balance Sheet Highlights (in thousands) | Account | Jan 31, 2024 | Jan 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $256,065 | $203,239 | | Short-term investments | $258,120 | $183,006 | | Total Assets | $823,836 | $668,598 | | Total Liabilities | $690,149 | $571,438 | | Total Stockholders' Equity | $133,687 | $97,160 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2024, Zuora's cash flow statement shows $18.8 million used in operating activities, $84.3 million used in investing activities, and $156.5 million provided by financing activities, resulting in a net increase of $52.8 million in cash and cash equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(18,767) | $(20,644) | | Net cash used in investing activities | $(84,277) | $(131,074) | | Net cash provided by financing activities | $156,542 | $241,911 | | Net increase in cash and cash equivalents | $52,826 | $89,732 | [Reconciliation of GAAP to Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) [Subscription and Professional Services Gross Margin Reconciliation](index=12&type=section&id=Subscription%20and%20Professional%20Services%20Gross%20Margin%20Reconciliation) This section reconciles GAAP to Non-GAAP gross margins, showing that for fiscal year 2024, Non-GAAP subscription gross margin improved to 82% from 79%, and Non-GAAP professional services gross margin improved to (4)% from (3)% FY2024 Subscription Gross Margin Reconciliation | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | FY2024 Subscription Gross Margin | 78% | 82% | | FY2023 Subscription Gross Margin | 76% | 79% | FY2024 Professional Services Gross Margin Reconciliation | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | FY2024 Prof. Services Gross Margin | (29)% | (4)% | | FY2023 Prof. Services Gross Margin | (25)% | (3)% | [Operating Income and Net Income Reconciliation](index=13&type=section&id=Operating%20Income%20and%20Net%20Income%20Reconciliation) Reconciliation tables highlight the significant difference between GAAP and Non-GAAP profitability for fiscal year 2024, with a GAAP operating loss of $64.4 million adjusted to a Non-GAAP operating income of $47.5 million, and a GAAP net loss of $68.2 million reconciled to a Non-GAAP net income of $45.9 million, primarily due to stock-based compensation and shareholder litigation adjustments FY2024 Operating (Loss) Income Reconciliation (in thousands) | Metric | Amount | | :--- | :--- | | GAAP loss from operations | $(64,407) | | Add: Stock-based compensation | $101,052 | | Add: Other adjustments | $(4,554) | | **Non-GAAP income from operations** | **$47,494** | FY2024 Net (Loss) Income Reconciliation (in thousands) | Metric | Amount | | :--- | :--- | | GAAP net loss | $(68,193) | | Add: Stock-based compensation | $101,052 | | Add: Other adjustments | $13,083 | | **Non-GAAP net income** | **$45,942** | [Adjusted Free Cash Flow and Constant Currency Reconciliation](index=15&type=section&id=Adjusted%20Free%20Cash%20Flow%20and%20Constant%20Currency%20Reconciliation) Zuora's adjusted free cash flow for fiscal 2024 significantly improved to a positive $44.3 million from a negative $27.8 million in fiscal 2023, while constant currency revenue growth rates for subscription (15%) and total revenue (10%) were higher than GAAP, indicating adverse foreign currency impacts FY2024 Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | FY2024 | FY2023 | | :--- | :--- | :--- | | Net cash used in operating activities (GAAP) | $(18,767) | $(20,644) | | Add: Shareholder litigation & Acq. costs | $73,048 | $3,437 | | Less: Purchases of property and equipment | $(9,987) | $(10,634) | | **Adjusted free cash flow (non-GAAP)** | **$44,294** | **$(27,841)** | FY2024 Constant Currency Revenue Growth | Revenue Type | GAAP Growth | Constant Currency Growth | | :--- | :--- | :--- | | Subscription Revenue | 13% | 15% | | Total Revenue | 9% | 10% | [Other Information](index=6&type=section&id=Other%20Information) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section serves as a safe harbor notice, cautioning that the report's financial outlook and future-oriented statements are subject to significant risks and uncertainties, including macroeconomic conditions, market acceptance, competition, and growth management, which could cause actual results to differ materially from projections - The report's forward-looking statements, including the financial outlook for fiscal 2025, are based on current management expectations and are subject to risks that could cause actual results to differ materially[23](index=23&type=chunk) - Key risk factors include ability to attract customers, macroeconomic conditions (inflation, interest rates), market acceptance of monetization platforms, competition, and ability to achieve profitability[23](index=23&type=chunk) [About Zuora, Inc.](index=7&type=section&id=About%20Zuora%2C%20Inc.) Zuora is a leading monetization suite enabling businesses to manage customer-centric models by orchestrating the complete quote-to-cash and revenue recognition process, serving over 1,000 global companies including General Motors, Siemens, and Zoom, with headquarters in Silicon Valley and worldwide offices - Zuora provides a monetization suite that orchestrates the quote-to-cash and revenue recognition process for businesses with customer-centric models[24](index=24&type=chunk) - The company serves **over 1,000 companies**, with notable clients including BMC Software, Box, Caterpillar, General Motors, and Zoom[24](index=24&type=chunk)

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Zuora (NYSE: ZUO), a leading monetization suite for modern businesses, today announced that it will report financial results for its fourth quarter fiscal 2024 ended on January 31, 2024 following the close of market on February 28, 2024. On that day, Zuora’s management team will hold a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET to discuss Zuora’s financial results and business highlights. Event: Zuora Fourth Quarter Fiscal 2024 Earnings Conference Call ...

Maskot Investment thesis Our current investment thesis is: ZUO is a market leader, ensuring it should progressively grow over time with limited churn, even if this lags behind its peers. This should drive incremental margin improvement through operating cost leverage, increasing its attractiveness. We struggle to see how ZUO can gain market share and reach an attractive financial profile, but this is less important at its current valuation. All that is required is a continuation of its mild trajectory ...

Zuora (ZUO) could be a solid choice for investors 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 sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a ...

Zuora (ZUO) shares ended the last trading session 6.1% higher at $9.38. 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 5.4% loss over the past four weeks.Zuora continues to benefit from an expanding clientele.In the fiscal third quarter, the number of customers with an annual contract value (ACV) equal to or greater than $250K was 453, up from the 420 reported in the year-ago quarter. Seven of the deals that close ...