Zuora - ZUO STOCK NEWS

Zuora (NYSE: ZUO) reported strong financial results for Q2 fiscal 2025. Subscription revenue grew 9% year-over-year to $104.1 million, while total revenue increased 7% to $115.4 million. The company achieved significant improvements in profitability, with GAAP operating margin increasing by 8 percentage points and non-GAAP operating margin rising by 13 percentage points year-over-year. Zuora's operating cash flow rose to $11.4 million, up from $5.4 million last year, and adjusted free cash flow increased to $12.2 million from $4.0 million. The company reached its goal to operate at a Rule of 30 two quarters ahead of plan, demonstrating its commitment to margin expansion and profitability in a challenging market.

Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern businesses, has announced the date for its second quarter fiscal 2025 earnings conference call. The company will report financial results for the quarter ended July 31, 2024, after market close on August 21, 2024. Zuora's management team will host a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET on the same day to discuss the financial results and business highlights.

The earnings call details include toll-free and toll dial-in numbers, a conference ID, and replay information. A live webcast will be available on the company's investor relations website, with a replay accessible until August 21, 2025. Zuora provides monetization solutions for over 1,000 customers worldwide, including notable companies like BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric, and Zoom.

Zuora (NYSE: ZUO) has been recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Recurring Billing Applications, placing furthest in Completeness of Vision. The Zuora Monetization Suite enables companies to power diverse revenue models, including usage-based, subscription, and hybrid offerings.

Pete Hirsch, Chief Product and Technology Officer at Zuora, emphasized the company's role in predicting and leading the shift from one-time transactions to recurring revenue businesses. The Zuora platform provides flexible, modular software for billing, payments, and revenue accounting, designed to support any business model.

The Gartner Magic Quadrant offers a comparative view of technology providers in markets with high growth and distinct provider differentiation. Zuora's recognition reinforces its position as a leading solution for companies looking to evolve their monetization strategies in line with customer demand.

Zuora's study on AI and GenAI services adoption reveals key consumer trends:

• 28% of respondents currently use GenAI services, with adoption highest among Gen Z (50%) and lowest among Boomers/Seniors (9%)
• 53% of respondents prefer usage-based pricing for AI and GenAI services
• Early adopters show interest in outcome-based charges, particularly Gen Z
• 70% of respondents are unwilling to pay extra for embedded GenAI features, but Gen Z is split on this issue

The study suggests that aligning monetization strategies with perceived value and generational preferences could be key for companies looking to capitalize on AI and GenAI services.

Zuora's Understanding the Modern Subscriber study reveals that consumers, especially younger generations, seek flexibility in payment options for recurring products and services. Key findings include:

- 80% of respondents value flexibility in buying and paying
- Usage-based pricing is preferred for travel (62%), food delivery (60%), and retail (58%) services
- 48% prefer bundles for better value, while 30% choose à la carte when cheaper
- 36% have canceled and rejoined the same service within a year
- 78% are interested in temporarily pausing services instead of canceling

The study highlights the importance of affordability (51%), value for money (37%), and convenience (32%) in subscription services. Businesses are encouraged to diversify offerings to meet consumer demands for flexibility and personalization.

Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern businesses, has been named a leader with the highest rating in ISG Software Research's 2024 Subscription Management Buyers Guides. The company received top marks across all four categories: Subscription Management, Subscription Management Platforms, B2B Subscription Management, and B2C Subscription Management.

The guides evaluated 24 software providers, with Zuora classified as Exemplary in each category. ISG highlighted Zuora's recent success, growth, and platform improvements. The research also noted an increasing trend in the adoption of mixed revenue models, including subscriptions and usage-based pricing, with projections suggesting over half of enterprises will deploy such models by 2027.

Zuora (NYSE: ZUO) announced its acquisition of Sub(x), an AI solution for digital publishing and media companies. This acquisition will enhance Zuora’s paywall offering into an AI-powered solution to better understand and optimize subscriber behavior, aiming to boost acquisition and retention. By leveraging first-party data, Sub(x)’s AI reduces manual testing costs by up to 90% and dynamically adapts strategies based on user interactions. This move aims to provide media companies with agile, data-driven decisions and continuous improvement in revenue models. The acquisition is expected to close by Zuora’s Q3 fiscal 2025.

Zuora (NYSE: ZUO) reported its Q1 fiscal 2025 results. Subscription revenue rose 10% year-over-year to $99.0 million, while total revenue increased 6% to $109.8 million. The GAAP loss from operations decreased from $20.2 million to $4.0 million. Non-GAAP income from operations grew to $18.6 million from $6.1 million. GAAP net loss was $13.7 million, an improvement from $19.3 million. Non-GAAP net income increased to $16.8 million. Operating cash flow improved to $32.9 million from $14.6 million, and adjusted free cash flow grew to $31.4 million. The company also highlighted its acquisition of Togai and new customer wins, including Ubisoft and Mitsubishi Electric. Zuora provided guidance for FY 2025, maintaining its topline outlook and raising its non-GAAP operating income range.

Zuora announced that its Chief Product and Technology Officer, Pete Hirsch, will participate in a fireside chat at the 19th Annual Needham Technology, Media, & Consumer Conference. The event will take place in New York City on May 14, 2024, at 1:30 p.m. Eastern Time. Investors can access the webcast live and on replay through Zuora's investor relations website.