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Zuora (ZUO) to Report Q2 Earnings: What's in the Cards?

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Zuora (ZUO - Free Report) is set to release second-quarter fiscal 2021 results on Sep 2.

For the quarter, the company expects total revenues between $72.5 million and $75 million. On a non-GAAP basis, loss is expected in the 7-8 cents-per-share range.

The Zacks Consensus Estimate for revenues is pegged at $72.8 million, suggesting growth of 4.4% from the figure reported in the year-ago quarter.

The consensus mark for loss stayed at 7 cents per share over the past 30 days. Zuora had reported a loss of 9 cents in the year-ago quarter.

Notably, the company beat the Zacks Consensus Estimate in the past four quarters, delivering an earnings surprise of 29.8%, on average.

Zuora, Inc. Price and EPS Surprise

 

Zuora, Inc. Price and EPS Surprise

Zuora, Inc. price-eps-surprise | Zuora, Inc. Quote

Let’s see how things have shaped up for this announcement.

Factors to Watch

Zuora’s second-quarter results are expected to have benefited from a resilient subscription-based business model amid the coronavirus pandemic.

Much similar to its Zacks Internet Software industry peers Anaplan , Model N (MODN - Free Report) and HubSpot (HUBS - Free Report) , Zuora expects subscription revenues to grow in the to-be-reported quarter. The figure is pegged in the range of $58-$59 million. At mid-point, this indicates 15.6% year-over-year growth.

Markedly, Anaplan, Model N and HubSpot reported subscription-revenue growth of 32%, 10% and 26%, respectively, in their recently concluded quarterly results.

Moreover, this Zacks Rank #3 (Hold) company’s expanding portfolio is expected to have aided top-line growth. The launch of Zuora Revenue (an updated version of RevPro) in the previous quarter is likely to have attracted new users. The updated solution enables companies to achieve a faster quarter close, minimize compliance risk and more precisely forecast the impact of business decisions on revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company also announced its next-generation Zuora Central Platform. Notably, for six months, customers can freely access Zuora Workflow software for five specific-use cases to address the common challenges emanating from the coronavirus outbreak.

However, subscription billings are expected to have grown at a lower rate sequentially in the to-be-reported quarter. Moreover, dollar-based retention rate, which declined to 103% due to lower volume upsell and cross-sell activity, is expected to have continued its downslide in second-quarter fiscal 2021.

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