UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _____________________________ FORM 10-K _____________________________ (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2019 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. (Exac ...

Financial Data and Key Metrics Changes - Subscription revenue grew by over 35% year-over-year to $46.7 million in Q4, while total revenue increased by 29% year-over-year to $64.1 million [12][36] - Non-GAAP operating loss was $11.6 million, better than guidance, leading to a non-GAAP net loss per share of $0.11 [12][36] - For the full year, total revenue grew 40% to $235.2 million, with both subscription and professional services revenue also increasing by 40% [37] Business Line Data and Key Metrics Changes - The company signed more than 30 new deals over $250,000, up nearly 50% from the prior year, indicating larger deal sizes [13] - Transaction volume through the billing system grew 56% to $10.8 billion in Q4, with annual subscription billings now exceeding $40 billion [13] Market Data and Key Metrics Changes - The company reported a 27% year-over-year growth in customers with $100,000 of Annual Contract Value (ACV) or more, ending Q4 with 526 such customers [30] - Dollar-based retention ended at 112%, indicating strong customer retention and growth [31] Company Strategy and Development Direction - The company aims to execute its land-and-expand strategy in core verticals like technology, media, auto, and manufacturing while expanding its system integrator partner network [51][52] - The focus is on building a modern BSS-OSS stack for dynamic customer-centric business models, positioning itself as a leader in the subscription economy [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the subscription economy and the company's strategic importance within it, noting that more companies are committing to subscription models [64] - The company anticipates continued growth in international markets, with international revenue approaching 30% of total revenue [76] Other Important Information - The company adopted the new revenue recognition standard ASC 606, providing guidance under both ASC 606 and ASC 605 for comparative purposes [4][44] - Free cash flow for Q4 was negative $9.8 million, with expectations of negative $42 million for fiscal year 2020, but the company remains on track to reach cash flow breakeven in three years [40][42] Q&A Session Summary Question: What is driving the growth in new deals over $250K? - Management indicated that the maturity of the subscription economy is leading companies to invest more seriously in subscription projects, recognizing the competitive advantages they offer [54] Question: How are system integrators expected to impact future bookings? - Management highlighted that system integrators are becoming increasingly important partners in digital transformation projects, which can streamline the sales cycle and enhance customer engagement [56] Question: How is the company addressing churn and cohort profitability? - Management noted that they are leveraging extensive data to reduce churn and drive growth, with a focus on understanding what pricing models work best for customers [59] - The company reported a net retention rate of 108% to 112%, indicating healthy growth across its customer base [60] Question: What is the impact of ASC 606 on revenue guidance? - Management explained that the differences in revenue recognition under ASC 606 are primarily due to historical business practices and reallocations, but they do not expect these to materially impact growth rates [66][68] Question: What is the company's strategy for sales execution and hiring? - Management expressed confidence in their sales execution strategy, emphasizing the need for disciplined hiring to engage with companies ready to launch subscription models [72] Question: What is driving faster growth in Europe? - Management noted that the subscription economy is not U.S.-centric, and they are seeing significant traction internationally as companies globally undergo digital transformations [75][76]