Jul 31, 2020

Zuora Q2 2021 Earnings Report

Reported solid results driven by the increasing demand for subscription business models.

Key Takeaways

Zuora reported an 8% year-over-year increase in total revenue, reaching $75.0 million, and a 15% year-over-year increase in subscription revenue, which was $58.3 million. The company's GAAP net loss was $20.1 million, while non-GAAP net loss was significantly reduced to $0.2 million. The company provided guidance for the third quarter of fiscal year 2021.

Total revenue increased by 8% year-over-year, reaching $75.0 million.

Subscription revenue grew by 15% year-over-year, totaling $58.3 million.

GAAP net loss improved to $20.1 million, or 27% of revenue, compared to $20.8 million, or 30% of revenue, in the prior year.

Non-GAAP net loss significantly decreased to $0.2 million from $9.5 million in the same quarter last year.

Total Revenue
$75M
Previous year: $69.7M
+7.5%
EPS
-$0.172
Previous year: -$0.09
+91.4%
Dollar-based retention rate
99%
Gross Profit
$41.9M
Cash and Equivalents
$119M
Free Cash Flow
-$740K
Total Assets
$387M

Zuora

Zuora

Zuora Revenue by Segment

Forward Guidance

For the third quarter of fiscal year 2021, Zuora expects total revenue between $73.0 million and $75.0 million, and subscription revenue between $59.0 million and $60.0 million.

Positive Outlook

  • Expects third quarter subscription revenue between $59.0M - $60.0M
  • Expects third quarter total revenue between $73.0M - $75.0M

Challenges Ahead

  • Expects third quarter Non-GAAP loss from operations between $(5.5M) - $(4.5M)
  • Expects third quarter Non-GAAP net loss per share between $(0.05) - $(0.04)

Revenue & Expenses

Visualization of income flow from segment revenue to net income