Apr 30, 2024

Zuora Q1 2025 Earnings Report

Zuora's first quarter of fiscal year 2025 demonstrated growth in revenue and improved profitability.

Key Takeaways

Zuora reported a 6% increase in total revenue, reaching $109.8 million, with subscription revenue growing by 10% year-over-year. The company's GAAP loss from operations significantly improved, and non-GAAP income from operations showed substantial growth. Operating cash flow and adjusted free cash flow also increased significantly compared to the previous year.

Total revenue increased by 6% year-over-year to $109.8 million.

GAAP loss from operations improved to $4.0 million, compared to $20.2 million in the first quarter of fiscal 2024.

Non-GAAP income from operations grew to $18.6 million, up from $6.1 million in the prior year.

Adjusted free cash flow increased to $31.4 million, compared to $13.0 million last year.

Total Revenue
$110M
Previous year: $103M
+6.5%
EPS
$0.11
Previous year: $0.05
+120.0%
Dollar-based retention rate
104%
Previous year: 108%
-3.7%
Gross Profit
$74.9M
Previous year: $65.7M
+13.9%
Cash and Equivalents
$266M
Previous year: $238M
+11.5%
Free Cash Flow
$31.4M
Previous year: $12.9M
+142.8%
Total Assets
$810M
Previous year: $673M
+20.3%

Zuora

Zuora

Zuora Revenue by Segment

Forward Guidance

Zuora provided guidance for the second quarter and full fiscal year 2025, maintaining its topline outlook and raising its non-GAAP operating income range while absorbing the operating expense impact of Togai.

Positive Outlook

  • Subscription revenue for Q2 is expected to be between $101.0M - $102.0M.
  • Total revenue for Q2 is projected to be $111.5M - $113.5M.
  • Non-GAAP income from operations for Q2 is forecasted to be $17.5M - $19.5M.
  • Non-GAAP net income per share for Q2 is expected to be $0.09 - $0.10.
  • Adjusted Free Cash Flow for the full year 2025 is expected to be $80.0M+

Revenue & Expenses

Visualization of income flow from segment revenue to net income