Zuora ( ZUO Quick Quote ZUO - Free Report) , a leading monetization suite for modern businesses, has recently unveiled two additions to its product lineup: the Zuora Warehouse and BYOW (Bring Your Own Warehouse) Technology, and Zephr's subscriber-led growth engine. Zuora recognizes the crucial role of data analysis in empowering business leaders to make informed decisions. However, traditional data analysis methods often suffer from inefficiencies and delays. To address this challenge, Zuora has introduced the Zuora Warehouse and BYOW technology, enabling enterprises to directly connect their data warehouse to Zuora's user interface. With this integration, businesses gain the ability to perform large-volume, high-speed data analysis within the Zuora UI, significantly improving the efficiency of billing and revenue operations. The solution allows for elastic, high-scale queries that can run on unlimited data volumes, delivering valuable insights quickly and efficiently. By leveraging the full power of SQL, enterprises can create queries across all their Zuora entities to analyze performance, including pre-calculated recurring revenue metrics. Further, by the end of 2023, Zuora plans to incorporate generative AI capabilities that use natural language to surface actionable insights. Early adopters of the Zuora Warehouse have already experienced remarkable results, with one enterprise reducing its month-end close process by up to 80%. This demonstrates the tangible benefits that businesses can achieve by leveraging Zuora's advanced data analysis tools. Zephr's Subscriber-Led Growth Engine to Aid Clientele
Zuora’s Zephr is the world's first subscriber-led growth engine. Originally catering to the media and digital publishing industry,, Zephr has expanded its capabilities to support various sectors, including SaaS, gaming, fitness and hospitality. This powerful engine enables modern businesses to drive growth and customer lifetime value by engaging subscribers directly through their product offerings.
Subscriber-led growth necessitates deep subscriber engagement, a precise understanding of individual subscribers, and the ability to deliver personalized offers. With Zephr, companies can dynamically create offerings tailored to each subscriber, fostering conversion, retention and ongoing value delivery. These offerings can range from freemium conversions and upsell add-ons to churn saves and win-back strategies. Zephr seamlessly integrates with Zuora's monetization suite, harmonizing billing, payments, collections and revenue recognition processes. This integrated approach streamlines operations and provides a comprehensive solution for enterprises aiming to capitalize on subscriber-led growth. Expanding Portfolio to Drive Zuora’s Top-Line Growth
Zuora's expanding portfolio, featuring the Zuora Warehouse and BYOW Technology and Zephr's growth engine, brings significant advantages to modern businesses. With the ability to perform fast and efficient data analysis within the Zuora UI, enterprises can make informed decisions quickly and be more competitive.
Furthermore, Zephr's dynamic offers enable businesses to cultivate strong subscriber relationships and maximize customer lifetime value. The new additions to the portfolio will expand Zuora’s clientele. In first-quarter fiscal 2024, customers with ACV equal to or greater than $100,000 were 782, up from 746 reported in the year-ago quarter. Customers with ACV equal to or greater than $250,000 were 436, up from 386 in the year-ago quarter. Further, Zuora’s ARR increased 15% year over year to $373.9 million in the fiscal first quarter. Additionally, dollar-based retention rate was 108% compared to 110% as of Apr 30, 2022. Zuora now expects second-quarter fiscal 2024 subscription revenues between $95 million and $96 million. Total revenues are expected between $108 million and $109.5 million. The Zacks Consensus Estimate for second-quarter fiscal 2024 revenues are $108.8 million, indicating 10.14% growth year over year. Moreover, for fiscal 2024, ARR is expected to grow between 12% and 15%. Zuora expects fiscal second-quarter earnings to grow 3-4 cents per share. The consensus mark for earnings is pegged at 3 cents per share, up by a penny over the past 30 days. Zacks Rank & Stocks to Consider
Zuora currently has a Zacks Rank #2 (Buy).
ZUO shares have outperformed both the Zacks Computer & Technology sector and the Zacks Internet Software industry. While Zuora has returned 75.5%, the sector and industry returned 34.7% and 45.9%, respectively. Meta Platforms ( META Quick Quote META - Free Report) , Palo Alto Networks ( PANW Quick Quote PANW - Free Report) and BlackLine ( BL Quick Quote BL - Free Report) are better-ranked stocks in the same industry. All three sport a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Shares of Meta and PANW are up 134% and 71.2%, respectively, on a year-to-date basis. However, BL shares have declined 20.4% over the same timeframe. Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.