Back to top

Image: Bigstock

Zuora (ZUO) Q4 Earnings Beat, Subscription Revenues Up Y/Y

Read MoreHide Full Article

Zuora (ZUO - Free Report) reported fourth-quarter fiscal 2021 loss of 2 cents per share that beat the Zacks Consensus Estimate by 60%. The company had reported a loss of 9 cents in the year-ago quarter.

Moreover, revenues of $79.3 million beat the consensus mark by 4.3% and also increased 12.6% year over year.

This solid outperformance was led by the robust adoption of Zuora solutions. Transaction volumes through Zuora’s billing platform were $17 billion, up 30% year over year.

Moreover, this Zacks Rank #3 (Hold) company benefited from a resilient subscription-based business model similar to its Zacks Internet Software industry peers —Anaplan (PLAN - Free Report) , Cloudera (CLDR - Free Report) and Workday (WDAY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

Zuora, Inc. Price, Consensus and EPS Surprise

 

Zuora, Inc. Price, Consensus and EPS Surprise

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

 

Notably, Anaplan’s fourth-quarter fiscal 2021 subscription revenues (91.9% of total revenues) rallied 25.7% year over year to $112.6 million. Cloudera’s fourth-quarter fiscal 2021 subscription revenues (91.3% of revenues) rose 13.7% year over year to $206.8 million. Workday reported fourth-quarter fiscal 2021 subscription revenues (88.9% of total revenues) of $1.01 billion, up 19.8% year over year.

Markedly, Zuora’s subscription revenues accounted for 82.1% of total revenues. The figure was $65.1 million, up 19.3% year over year.

QuarterDetails   

Professional Services Revenues (17.9% of total revenues) declined 10.5% year over year to $14.2 million.

In the fiscal fourth quarter, the number of customers with annual contract value— equal to or greater than $100K — was 676, increasing 8% year over year.

The dollar-based retention rate improved 100 basis points (bps) sequentially at 100%.

Zuora helped Acer, Bridgestone, Cambium Networks, Gitlab, Grundfos, Radio Canada and Riverbed to go live in the quarter. Siemens, Schibsted, and NVIDIA were notable customers. Zuora also announced a strategic partnership agreement with Stripe.

Meanwhile, non-GAAP gross margin expanded 840 bps year over year to 66%, driven by a shift from services work to a higher-margin, subscription-based model.

Non-GAAP subscription gross margin was 81% compared with 77% in the year-ago quarter.

Research & development expenses, as a percentage of revenues, decreased 220 bps on a year-over-year basis to 20.6%. Moreover, general & administrative (G&A) expenses, as a percentage of revenues, were 12.8%, down 230 bps year over year.

However, sales & marketing expenses increased 30 bps to 34.9%.

Total operating expenses, as a percentage of revenues, were 68.2%, down 420 bps from the year-ago quarter.

Balance Sheet & Cash Flow

As of Jan 31, 2021, Zuora had cash, cash equivalents and short-term investments of $186.6 million compared with $178.8 million as of Oct 31, 2020.  

Free cash outflow was $0.03 million compared with $5.1 million in the year-ago quarter.

Guidance

For the first quarter of fiscal 2022, Zuora expects subscription revenues in the range of $63-$65 million. Revenues are expected between $78 million and $80 million. The Zacks Consensus Estimate for revenues is currently pegged at $76 million.

Non-GAAP loss from operations is expected between $4.5 million and $5 million.

Non-GAAP loss is expected between 3 cents and 4 cents per share. The consensus mark for the same is pegged at 5 cents per share.

For fiscal 2022, Zuora expects subscription revenues in the range of $272-$276 million. Revenues are expected between $335 million and $337 million. The Zacks Consensus Estimate for revenues is currently pegged at $333 million.

Non-GAAP loss from operations is expected between $8 million and $12 million.

Non-GAAP loss is expected between 6 cents and 10 cents per share. The consensus mark for the same is pegged at 9 cents per share.

 

5G Revolution: 3 Stocks to Make Your Move

With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.

Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our .

  • Smartest stock for 5G telecom
  • Safest investment in 5G hardware
  • Single best 5G buy of all!


Download now. Today the report is FREE >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Workday, Inc. (WDAY) - free report >>

Cloudera, Inc. (CLDR) - free report >>

Zuora, Inc. (ZUO) - free report >>

Anaplan, Inc. (PLAN) - free report >>