Subscription revenue grew 9%
year-over-year GAAP operating margin increased 8 percentage
points year-over-year Non-GAAP operating margin increased 13
percentage points year-over-year Operating cash flow
increased to $11.4 million compared to $5.4 million last
year Adjusted free cash flow increased to $12.2 million
compared to $4.0 million last year
Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern
business, today announced financial results for its fiscal second
quarter ended July 31, 2024.
“I’m proud of our ZEOs for delivering a solid second quarter,”
said Tien Tzuo, Founder and CEO at Zuora. “From our install base to
the analyst community, we continue to be recognized for our market
leadership. When enterprise organizations want to win with a Total
Monetization strategy, they come to us for our mission-critical
technology.”
“In the second quarter, we reached our goal to operate at a Rule
of 30 two quarters ahead of plan,” said Todd McElhatton, Chief
Financial Officer at Zuora. “We remain committed to margin
expansion and profitability as we navigate this challenging
market.”
Second Quarter Fiscal 2025 Financial Results:
- Revenue: Subscription revenue was $104.1 million, an
increase of 9% year-over-year. Total revenue was $115.4 million, an
increase of 7% year-over-year.
- GAAP Loss from Operations: GAAP loss from operations was
$9.7 million, compared to a loss from operations of $18.2 million
in the second quarter of fiscal 2024.
- Non-GAAP Income from Operations: Non-GAAP income from
operations was $25.6 million, compared to non-GAAP income from
operations of $9.6 million in the second quarter of fiscal
2024.
- GAAP Net Loss: GAAP net loss was $7.2 million, or 6% of
revenue, compared to a net loss of $22.6 million, or 21% of
revenue, in the second quarter of fiscal 2024. GAAP net loss per
share was $0.05 based on 149.4 million weighted-average shares
outstanding, compared to a net loss per share of $0.16 based on
138.6 million weighted-average shares outstanding in the second
quarter of fiscal 2024.
- Non-GAAP Net Income: Non-GAAP net income was $29.1
million, compared to non-GAAP net income of $10.0 million in the
second quarter of fiscal 2024. Non-GAAP net income per share was
$0.19 based on 149.4 million weighted-average shares outstanding,
compared to non-GAAP net income per share of $0.07 based on 138.6
million weighted-average shares outstanding in the second quarter
of fiscal 2024.
- Cash Flow: Net cash provided by operating activities was
$11.4 million, compared to net cash provided by operating
activities of $5.4 million in the second quarter of fiscal
2024.
- Adjusted Free Cash Flow: Adjusted free cash flow was
$12.2 million compared to $4.0 million in the second quarter of
fiscal 2024.
- Cash and Investments: Cash and cash equivalents and
short-term investments were $543.5 million as of July 31,
2024.
Descriptions of our non-GAAP financial measures are contained in
the section titled "Explanation of Non-GAAP Financial Measures"
below and reconciliations of GAAP and non-GAAP financial measures
are contained in the tables below.
Key Metrics and Business Highlights:
- Customers with annual contract value (ACV) equal to or greater
than $250,000 were 445, up from 444 as of July 31, 2023.
- Dollar-based retention rate (DBRR) was 104%, compared to 107%
as of July 31, 2023.
- Annual Recurring Revenue (ARR) was $412.3 million compared to
$384.2 million as of July 31, 2023, representing ARR growth of
7%.
- Gartner recognized Zuora as a Leader in the Magic Quadrant for
Recurring Billing Applications, placing Zuora furthest in
Completeness of Vision.
- ISG Software Research (formerly Ventana Research) named Zuora a
Leader with the highest rating in all four of its Subscription
Management Buyers Guides.
- Zuora ranked no. 1 in Product and Strategy in the latest MGI
Research Automated Revenue Management (ARM) Buyer's Guide.
- Announced the planned acquisition of Sub(x), an AI solution for
digital publishing and media companies that will transform Zuora’s
existing paywall offering into an AI-powered paywall solution,
which closed in August.
- Released Zuora's latest Global Impact Report. In the latest
report, Zuora continues to be a carbon-neutral company and
committed to the Science Based Targets initiative (SBTi) to set
both near-term and long-term greenhouse gas reduction goals,
including reaching net-zero.
- New customers and go-lives included Canva, The Economist and
Dark Matter Technologies.
Financial Outlook:
As of August 21, 2024, we are providing guidance for the third
quarter and full fiscal year 2025 based on current market
conditions and expectations. For the full fiscal year 2025, we are
raising both our revenue outlook and our non-GAAP operating income
ranges, as well as increasing our target for adjusted free cash
flow, while absorbing the operating expense impact of our recent
Togai and Sub(x) acquisitions. We emphasize that the guidance is
subject to various important cautionary factors referenced in the
section entitled “Forward-Looking Statements” below.
For the third quarter and full fiscal year 2025, Zuora currently
expects the following results:
Third Quarter
Fiscal 2025
Subscription revenue
$104.5M - $105.5M
$414.5M - $416.5M
Professional services revenue
$10.5M - $11.5M
$41.0M - $45.0M
Total revenue
$115.0M - $117.0M
$455.5M - $461.5M
Non-GAAP income from operations1
$20.5M - $21.5M
$90.0M - $93.0M
Non-GAAP net income per share1,2
$0.11 - $0.12
$0.56 - $0.58
ARR growth3
~6%
Dollar-based Retention Rate3
103% - 104%
Adjusted Free Cash Flow1
$82.0M+
(1) For information on how we derive our
non-GAAP financial measures, see the section titled "Explanation of
Non-GAAP Financial Measures" below. Zuora has not reconciled its
guidance for non-GAAP income from operations to GAAP loss from
operations or non-GAAP net income per share to GAAP net loss per
share because stock-based compensation expense cannot be reasonably
calculated or predicted at this time. Additionally, adjusted free
cash flow has not been reconciled to operating cash flows as it
cannot be reasonably calculated or predicted at this time.
Accordingly, a reconciliation of these non-GAAP measures is not
available without unreasonable effort.
(2) Non-GAAP net income per share was
computed assuming 152.5 million and 150.9 million weighted-average
shares outstanding for the third quarter and full fiscal year 2025,
respectively.
(3) Refer to the "Explanation of Key
Operational and Financial Metrics" section below for how these
metrics are calculated.
These statements are forward-looking and actual results may
differ materially. Refer to the “Forward-Looking Statements” safe
harbor section below for information on the factors that could
cause our actual results to differ materially from these
forward-looking statements.
Explanation of Key Operational and Financial Metrics:
Annual Contract Value (ACV). We define ACV as the subscription
revenue we would contractually expect to recognize from a customer
over the next twelve months, assuming no increases or reductions in
their subscriptions. We define the number of customers at the end
of any particular period as the number of parties or organizations
that have entered into a distinct subscription contract with us and
for which the term has not ended. Each party with whom we have
entered into a distinct subscription contract is considered a
unique customer, and in some cases, there may be more than one
customer within a single organization.
Dollar-based Retention Rate (DBRR). We calculate DBRR as of a
period end by starting with the sum of the ACV from all customers
as of twelve months prior to such period end, or prior period ACV.
We then calculate the sum of the ACV from these same customers as
of the current period end, or current period ACV. Current period
ACV includes any upsells and also reflects contraction or attrition
over the trailing twelve months but excludes revenue from new
customers added in the current period. We then divide the current
period ACV by the prior period ACV to arrive at our dollar-based
retention rate.
Annual Recurring Revenue (ARR). ARR represents the annualized
recurring value at the time of initial booking or contract
modification for all active subscription contracts at the end of a
reporting period. ARR excludes the value of non-recurring revenue
such as professional services revenue as well as contracts with new
customers with a term of less than one year. ARR should be viewed
independently of revenue and deferred revenue, and is not intended
to be a substitute for, or combined with, any of these items. ARR
growth is calculated by dividing the ARR as of a period end by the
ARR for the corresponding period end of the prior fiscal year.
Webcast and Conference Call Information:
Zuora will host a conference call for investors on August 21,
2024 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss
the company’s financial results and business highlights. Investors
are invited to listen to a live webcast of the conference call by
visiting https://investor.zuora.com. A replay of the webcast will
be available through August 21, 2025. The call can also be accessed
live via phone by the toll-free dial-in number: 1-888-596-4144 or
toll dial-in number: 1-646-968-2525 with conference ID 8022374. An
audio replay will be available shortly after the call and can be
accessed by dialing 1-800-770-2030 or 1-609-800-9909 with
conference ID 8022374 available from August 21, 2024 at 5:00 p.m.
PT to August 28, 2024 at 11:59 p.m. PT.
Explanation of Non-GAAP Financial Measures:
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press
release and the accompanying tables contain non-GAAP financial
measures including: non-GAAP cost of subscription revenue; non-GAAP
subscription gross margin; non-GAAP cost of professional services
revenue; non-GAAP professional services gross margin; non-GAAP
gross profit; non-GAAP gross margin; non-GAAP income from
operations; non-GAAP operating margin; non-GAAP net income;
non-GAAP net income per share; and adjusted free cash flow. The
presentation of these financial measures is not intended to be
considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with
GAAP.
We use non-GAAP financial measures in conjunction with GAAP
measures as part of our overall assessment of our performance,
including the preparation of our annual operating budget and
quarterly forecasts, to evaluate the effectiveness of our business
strategies and to communicate with our Board of Directors
concerning our financial performance. We believe these non-GAAP
measures provide investors consistency and comparability with our
past financial performance and facilitate period-to-period
comparisons of our operating results. We also believe these
non-GAAP measures are useful in evaluating our operating
performance compared to that of other companies in our industry, as
they generally eliminate the effects of certain items that may vary
for different companies for reasons unrelated to overall operating
performance.
We exclude the following items from one or more of our non-GAAP
financial measures:
- Stock-based compensation expense. We exclude stock-based
compensation expense, which is a non-cash expense, because we
believe that excluding this item provides meaningful supplemental
information regarding operational performance. In particular,
stock-based compensation expense is not comparable across companies
given it is calculated using a variety of valuation methodologies
and subjective assumptions.
- Amortization of acquired intangible assets. We exclude
amortization of acquired intangible assets, which is a non-cash
expense, because we do not believe it has a direct correlation to
the operation of our business.
- Charitable contributions. We exclude expenses associated with
charitable donations of our common stock. We believe that excluding
these non-cash expenses allows investors to make more meaningful
comparisons between our operating results and those of other
companies.
- Shareholder matters. We exclude non-recurring charges and
benefits, net of insurance recoveries, including litigation
expenses, settlements and other legal, consulting and advisory
fees, related to shareholder matters that are outside of the
ordinary course of our business, including expenses related to a
cooperation agreement. We believe these charges and benefits do not
have a direct correlation to the operations of our business and may
vary in size depending on the timing, results and resolution of
such litigation, settlements, agreements or other shareholder
matters.
- Asset impairment. We exclude non-cash charges for impairment of
assets, including impairments related to internal-use software,
office leases, and acquired intangible assets. Impairment charges
can vary significantly in terms of amount and timing and we do not
consider these charges indicative of our current or past operating
performance. Moreover, we believe that excluding the effects of
these charges allows investors to make more meaningful comparisons
between our operating results and those of other companies.
- Change in fair value of debt conversion and warrant
liabilities. We exclude fair value adjustments related to the debt
conversion and warrant liabilities, which are non-cash gains or
losses, as they can fluctuate significantly with changes in Zuora's
stock price and market volatility, and do not reflect the
underlying cash flows or operational results of the business.
- Acquisition-related expenses. We exclude acquisition-related
expenses (including integration-related charges) that are not
related to our ongoing operations, including expenses we incurred
and gains or losses recognized on contingent consideration, related
to acquisitions. We do not consider these transaction expenses as
reflective of our core business or ongoing operating
performance.
- Workforce reductions. We exclude charges related to workforce
reduction plans, including severance, health care and related
expenses. We believe these charges are not indicative of our
continuing operations.
Additionally, we disclose "adjusted free cash flow", which is a
non-GAAP measure that includes adjustments to operating cash flows
for cash impacts related to Shareholder matters and
Acquisition-related expenses described above, and net purchases of
property and equipment. We include the impact of net purchases of
property and equipment in our adjusted free cash flow calculation
because we consider these capital expenditures to be a necessary
component of our ongoing operations. We believe this measure is
meaningful to investors because management reviews cash flows
generated from operations excluding such expenditures that are not
related to our ongoing operations.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. The non-GAAP measures we use may be different from
non-GAAP financial measures used by other companies, limiting their
usefulness for comparison purposes. We compensate for these
limitations by providing specific information regarding the GAAP
items excluded from these non-GAAP financial measures.
Forward-Looking Statements:
Zuora’s Financial Outlook and other statements in this release
that refer to future plans and expectations are forward-looking
statements that involve a number of risks and uncertainties. Words
such as “believes,” “may,” “will,” “determine,” “estimates,”
“potential,” “continues,” “anticipates,” “intends,” “expects,”
“could,” “would,” “projects,” “plans,” “targets,” “strategy,”
“likely,” and variations of such words and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements in this release include our financial outlook for the
third quarter and full year fiscal 2025. Forward-looking statements
are based on management's expectations as of the date of this
filing and are subject to a number of risks, uncertainties and
assumptions, many of which involve factors or circumstances that
are beyond our control. Our actual results could differ materially
from those stated or implied in forward-looking statements due to a
number of factors, including but not limited to, risks detailed in
our Form 10-Q filed with the Securities and Exchange Commission on
May 31, 2024 as well as other documents that may be filed by us
from time to time with the Securities and Exchange Commission,
including in our Quarterly Report on Form 10-Q for the quarter
ended July 31, 2024. In particular, the following factors, among
others, could cause results to differ materially from those
expressed or implied by such forward-looking statements: our
ability to attract new customers and retain and expand sales to
existing customers; our ability to manage our future revenue and
profitability plans effectively; adoption of monetization platform
software and related solutions, as well as consumer adoption of
products and services that are provided through such solutions; our
ability to develop and release new products and services, or
successful enhancements, new features and modifications; challenges
related to growing our relationships with strategic partners; loss
of key employees; our ability to compete in our markets; adverse
impacts on our business and financial condition due to
macroeconomic or market conditions; the impact of actions to
improve operational efficiencies and operating costs; our history
of net losses and ability to achieve or sustain profitability;
market acceptance of our products; the success of our product
development efforts; risks associated with currency exchange rate
fluctuations; risks associated with our debt obligations;
successful deployment of our solutions by customers after entering
into a subscription agreement with us; the success of our sales and
product initiatives; our security measures; our ability to
adequately protect our intellectual property; interruptions or
performance problems; litigation and other shareholder related
costs; the anticipated benefits of acquisitions and ability to
integrate operations and technology of any acquired company;
geopolitical conflicts or destabilizing events; other business
effects, including those related to industry, market, economic,
political, regulatory and global health conditions and other risks
and uncertainties. The forward-looking statements included in this
press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments will
cause our views to change. We undertake no intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
About Zuora, Inc.
Zuora provides a leading monetization suite to build, run and
grow a modern business through a dynamic mix of usage-based models,
subscription bundles and everything in between. From pricing and
packaging, to billing, payments and revenue accounting, Zuora’s
flexible, modular software platform is designed to help companies
evolve monetization strategies with customer demand. More than
1,000 customers around the world, including BMC Software, Box,
Caterpillar, General Motors, Penske Media Corporation, Schneider
Electric and Zoom use Zuora’s leading combination of technology and
expertise to turn recurring relationships and recurring revenue
into recurring growth. Zuora is headquartered in Silicon Valley
with offices in the Americas, EMEA and APAC. To learn more, please
visit zuora.com.
© 2024 Zuora, Inc. All Rights Reserved. Zuora, Subscribed,
Subscription Economy, Powering the Subscription Economy,
Subscription Economy Index, Zephr, and Subscription Experience
Platform are trademarks or registered trademarks of Zuora, Inc.
Third party trademarks mentioned above are owned by their
respective companies. Nothing in this press release should be
construed to the contrary, or as an approval, endorsement or
sponsorship by any third parties of Zuora, Inc. or any aspect of
this press release.
SOURCE: ZUORA, INC.
ZUORA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except per
share data)
(unaudited)
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Revenue:
Subscription
$
104,051
$
95,473
$
203,010
$
185,184
Professional services
11,345
12,575
22,155
25,959
Total revenue
115,396
108,048
225,165
211,143
Cost of revenue:
Subscription1
22,564
21,338
43,253
41,926
Professional services1
14,728
16,443
29,100
33,201
Total cost of revenue
37,292
37,781
72,353
75,127
Gross profit
78,104
70,267
152,812
136,016
Operating expenses:
Research and development1
26,454
26,256
50,020
51,924
Sales and marketing1
36,137
42,799
71,982
84,243
General and administrative1
25,202
19,451
44,471
38,267
Total operating expenses
87,793
88,506
166,473
174,434
Loss from operations
(9,689
)
(18,239
)
(13,661
)
(38,418
)
Change in fair value of debt conversion
and warrant liabilities
(1,013
)
(4,786
)
(8,941
)
(4,756
)
Interest expense
(6,965
)
(4,607
)
(13,736
)
(8,994
)
Interest and other income (expense),
net
8,168
5,657
13,483
11,367
Loss before income taxes
(9,499
)
(21,975
)
(22,855
)
(40,801
)
Income tax (benefit) provision
(2,278
)
587
(1,926
)
1,056
Net loss
(7,221
)
(22,562
)
(20,929
)
(41,857
)
Comprehensive loss:
Foreign currency translation
adjustment
171
(404
)
(76
)
(687
)
Unrealized gain (loss) on
available-for-sale securities
302
172
(185
)
512
Comprehensive loss
$
(6,748
)
$
(22,794
)
$
(21,190
)
$
(42,032
)
Net loss per share, basic and diluted
$
(0.05
)
$
(0.16
)
$
(0.14
)
$
(0.30
)
Weighted-average shares outstanding used
in calculating net loss per share, basic and diluted
149,377
138,605
148,038
137,417
_____________________
(1) Stock-based compensation expense was
recorded in the following cost and expense categories:
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Cost of subscription revenue
$
2,377
$
2,180
$
3,960
$
4,539
Cost of professional services revenue
2,723
3,229
4,761
6,250
Research and development
8,080
6,752
13,983
13,496
Sales and marketing
7,521
8,689
12,996
16,666
General and administrative
5,007
5,798
8,469
10,921
Total stock-based compensation expense
$
25,708
$
26,648
$
44,169
$
51,872
ZUORA, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
July 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
237,041
$
256,065
Short-term investments
306,430
258,120
Accounts receivable, net
93,315
124,602
Deferred commissions, current portion
15,953
15,870
Prepaid expenses and other current
assets
25,862
23,261
Total current assets
678,601
677,918
Property and equipment, net
26,882
25,961
Operating lease right-of-use assets
21,783
22,462
Purchased intangibles, net
21,590
10,082
Deferred commissions, net of current
portion
25,421
27,250
Goodwill
69,739
56,657
Other assets
5,172
3,506
Total assets
$
849,188
$
823,836
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
773
$
3,161
Accrued expenses and other current
liabilities
21,621
32,157
Accrued employee liabilities
30,427
37,722
Deferred revenue, current portion
185,183
199,615
Operating lease liabilities, current
portion
6,710
6,760
Total current liabilities
244,714
279,415
Long-term debt
365,300
359,525
Deferred revenue, net of current
portion
1,454
2,802
Operating lease liabilities, net of
current portion
34,508
37,100
Deferred tax liabilities
3,726
3,725
Other long-term liabilities
7,439
7,582
Total liabilities
657,141
690,149
Stockholders’ equity:
Class A common stock
14
14
Class B common stock
1
1
Additional paid-in capital
1,043,691
964,141
Accumulated other comprehensive loss
(1,120
)
(859
)
Accumulated deficit
(850,539
)
(829,610
)
Total stockholders’ equity
192,047
133,687
Total liabilities and stockholders’
equity
$
849,188
$
823,836
ZUORA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended July
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(20,929
)
$
(41,857
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation, amortization and
accretion
9,177
8,892
Stock-based compensation
44,169
51,872
Provision for credit losses
1,670
279
Amortization of deferred commissions
9,209
9,746
Reduction in carrying amount of
right-of-use assets
2,278
3,116
Change in fair value of debt conversion
and warrant liabilities
8,941
4,756
Other
(2,414
)
186
Changes in operating assets and
liabilities:
Accounts receivable
29,621
9,726
Prepaid expenses and other assets
(3,818
)
(4,317
)
Deferred commissions
(7,599
)
(7,647
)
Accounts payable
(2,407
)
(63
)
Accrued expenses and other liabilities
4,808
(5,102
)
Accrued employee liabilities
(7,295
)
(128
)
Deferred revenue
(15,780
)
(1,848
)
Operating lease liabilities
(5,329
)
(7,630
)
Net cash provided by operating
activities
44,302
19,981
Cash flows from investing
activities:
Purchases of property and equipment
(5,922
)
(3,838
)
Purchases of short-term investments
(181,467
)
(61,745
)
Maturities of short-term investments
136,301
165,128
Cash paid for acquisition, net of cash
acquired
(19,763
)
(4,524
)
Net cash (used in) provided by investing
activities
(70,851
)
95,021
Cash flows from financing
activities:
Proceeds from issuance of common stock
upon exercise of stock options
3,120
962
Proceeds from issuance of common stock
under employee stock purchase plan
4,481
4,765
Net cash provided by financing
activities
7,601
5,727
Effect of exchange rates on cash and cash
equivalents
(76
)
(687
)
Net (decrease) increase in cash and cash
equivalents
(19,024
)
120,042
Cash and cash equivalents, beginning of
period
256,065
203,239
Cash and cash equivalents, end of
period
$
237,041
$
323,281
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except
percentages)
(unaudited)
Subscription Gross
Margin
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Reconciliation of cost of subscription
revenue:
GAAP cost of subscription revenue
$
22,564
$
21,338
$
43,253
$
41,926
Less:
Stock-based compensation
(2,377
)
(2,180
)
(3,960
)
(4,539
)
Amortization of acquired intangibles
(934
)
(738
)
(1,542
)
(1,476
)
Workforce reductions
(402
)
—
(568
)
(38
)
Acquisition-related expenses
(91
)
—
(91
)
—
Shareholder matters
(20
)
—
(20
)
—
Non-GAAP cost of subscription revenue
$
18,740
$
18,420
$
37,072
$
35,873
GAAP subscription gross margin
78
%
78
%
79
%
77
%
Non-GAAP subscription gross margin
82
%
81
%
82
%
81
%
Professional Services Gross
Margin
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Reconciliation of cost of professional
services revenue:
GAAP cost of professional services
revenue
$
14,728
$
16,443
$
29,100
$
33,201
Less:
Stock-based compensation
(2,723
)
(3,229
)
(4,761
)
(6,250
)
Shareholder matters
(28
)
—
(28
)
—
Workforce reductions
(11
)
(46
)
(5
)
(46
)
Non-GAAP cost of professional services
revenue
$
11,966
$
13,168
$
24,306
$
26,905
GAAP professional services gross
margin
(30
)%
(31
)%
(31
)%
(28
)%
Non-GAAP professional services gross
margin
(5
)%
(5
)%
(10
)%
(4
)%
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands, except
percentages)
(unaudited)
Total Gross Margin
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Reconciliation of gross profit:
GAAP gross profit
$
78,104
$
70,267
$
152,812
$
136,016
Add:
Stock-based compensation
5,100
5,409
8,721
10,789
Amortization of acquired intangibles
934
738
1,542
1,476
Workforce reductions
413
46
573
84
Acquisition-related expenses
91
—
91
—
Shareholder matters
48
—
48
—
Non-GAAP gross profit
$
84,690
$
76,460
$
163,787
$
148,365
GAAP gross margin
68
%
65
%
68
%
64
%
Non-GAAP gross margin
73
%
71
%
73
%
70
%
Operating (Loss) Income and Operating
Margin
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Reconciliation of (loss) income from
operations:
GAAP loss from operations
$
(9,689
)
$
(18,239
)
$
(13,661
)
$
(38,418
)
Add:
Stock-based compensation
25,708
26,648
44,169
51,872
Acquisition-related expenses
6,801
158
6,801
192
Shareholder matters
1,294
208
4,059
243
Amortization of acquired intangibles
934
738
1,542
1,476
Workforce reductions
577
46
1,277
265
Non-GAAP income from operations
$
25,625
$
9,559
$
44,187
$
15,630
GAAP operating margin
(8
)%
(17
)%
(6
)%
(18
)%
Non-GAAP operating margin
22
%
9
%
20
%
7
%
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands, except per
share data)
(unaudited)
Net (Loss) Income and Net
(Loss) Income Per Share
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Reconciliation of net (loss) income:
GAAP net loss
$
(7,221
)
$
(22,562
)
$
(20,929
)
$
(41,857
)
Add:
Stock-based compensation
25,708
26,648
44,169
51,872
Acquisition-related expenses
6,801
158
6,801
192
Shareholder matters
1,294
208
4,059
243
Change in fair value of debt conversion
and warrant liabilities
1,013
4,786
8,941
4,756
Amortization of acquired intangibles
934
738
1,542
1,476
Workforce reductions
577
46
1,277
265
Non-GAAP net income
$
29,106
$
10,022
$
45,860
$
16,947
GAAP net loss per share, basic and
diluted1
$
(0.05
)
$
(0.16
)
$
(0.14
)
$
(0.30
)
Non-GAAP net income per share, basic and
diluted1
$
0.19
$
0.07
$
0.31
$
0.12
_________________________________
(1) For the three months ended
July 31, 2024 and 2023, GAAP and Non-GAAP net (loss) income per
share are calculated based upon 149.4 million and 138.6 million
basic and diluted weighted-average shares of common stock,
respectively. For the six months ended July 31, 2024 and 2023, GAAP
and Non-GAAP net (loss) income per share are calculated based upon
148.0 million and 137.4 million basic and diluted weighted-average
shares of common stock, respectively.
Adjusted Free Cash Flow
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Net cash provided by operating activities
(GAAP)
$
11,432
$
5,388
$
44,302
$
19,981
Add:
Shareholder matters
2,367
726
3,555
753
Acquisition-related expenses
1,713
91
1,713
107
Less:
Purchases of property and equipment
(3,267
)
(2,181
)
(5,922
)
(3,838
)
Adjusted free cash flow (non-GAAP)
$
12,245
$
4,024
$
43,648
$
17,003
Net cash (used in) provided by investing
activities (GAAP)
$
(46,283
)
$
74,719
$
(70,851
)
$
95,021
Net cash provided by financing activities
(GAAP)
$
6,009
$
5,190
$
7,601
$
5,727
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240821288207/en/
Investor Relations Contact: Luana Wolk
investorrelations@zuora.com 650-419-1377
Media Relations Contact: Margaret Juhnke press@zuora.com
619-609-3919
Grafico Azioni Zuora (NYSE:ZUO)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Zuora (NYSE:ZUO)
Storico
Da Gen 2024 a Gen 2025
