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Zuora (ZUO) to Report Q4 Earnings: What's in the Cards?
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Zuora (ZUO - Free Report) is set to release fourth-quarter fiscal 2021 results on Mar 11.
For the quarter, the company expects total revenues between $75 million and $77 million. On a non-GAAP basis, loss is expected in the 5-6 cents-per-share range.
The Zacks Consensus Estimate for revenues is pegged at $76 million, suggesting growth of 8% from the figure reported in the year-ago quarter.
The consensus mark for loss stayed at 5 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 57.5%, on average.
Let’s see how things have shaped up for this announcement.
Factors to Watch
Zuora’s fourth-quarter results are expected to have benefited from a resilient subscription-based business model.
The company’s portfolio strength is expected to have helped it win new customers in the to-be-reported quarter. Notably, Zuora helped 41 customers, including Bosch, Media24, Panasonic, Siemens Smart Infrastructure, Sonos and Thomson Reuters, to go live in the previous quarter.
Markedly, in the fiscal third quarter, the number of customers with annual contract value — equal to or greater than $100K — was 653, increasing 11% year over year and forming 90% of Zuora’s business.
Additionally, a robust partner base that includes Accenture (ACN - Free Report) , Capgemini, Deloitte, EY and PwC, is likely to have helped Zuora win enterprise customers. Also, the strong momentum of Zuora Analytics and rising customer acceptance of the company’s new capabilities are expected to have been major growth drivers.
Further, the shift of revenue mix to high-margin subscription revenues is expected to have driven margin expansion. Subscription revenues accounted for 80.3% of total revenues in the third quarter.
Additionally, the dollar-based retention rate, which declined to 99% due to increased customer churn rate, is expected to have remained steady in fourth-quarter fiscal 2021.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Zuora has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
FedEx (FDX - Free Report) has an Earnings ESP of +2.72% and carries a Zacks Rank of 2, at present.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Zuora (ZUO) to Report Q4 Earnings: What's in the Cards?
Zuora (ZUO - Free Report) is set to release fourth-quarter fiscal 2021 results on Mar 11.
For the quarter, the company expects total revenues between $75 million and $77 million. On a non-GAAP basis, loss is expected in the 5-6 cents-per-share range.
The Zacks Consensus Estimate for revenues is pegged at $76 million, suggesting growth of 8% from the figure reported in the year-ago quarter.
The consensus mark for loss stayed at 5 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 57.5%, on average.
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 fourth-quarter results are expected to have benefited from a resilient subscription-based business model.
The company’s portfolio strength is expected to have helped it win new customers in the to-be-reported quarter. Notably, Zuora helped 41 customers, including Bosch, Media24, Panasonic, Siemens Smart Infrastructure, Sonos and Thomson Reuters, to go live in the previous quarter.
Markedly, in the fiscal third quarter, the number of customers with annual contract value — equal to or greater than $100K — was 653, increasing 11% year over year and forming 90% of Zuora’s business.
Additionally, a robust partner base that includes Accenture (ACN - Free Report) , Capgemini, Deloitte, EY and PwC, is likely to have helped Zuora win enterprise customers. Also, the strong momentum of Zuora Analytics and rising customer acceptance of the company’s new capabilities are expected to have been major growth drivers.
Further, the shift of revenue mix to high-margin subscription revenues is expected to have driven margin expansion. Subscription revenues accounted for 80.3% of total revenues in the third quarter.
Additionally, the dollar-based retention rate, which declined to 99% due to increased customer churn rate, is expected to have remained steady in fourth-quarter fiscal 2021.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Zuora has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Micron (MU - Free Report) has an Earnings ESP of +5.16% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
FedEx (FDX - Free Report) has an Earnings ESP of +2.72% and carries a Zacks Rank of 2, at present.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>