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Zuora
🇺🇸 NYSE:ZUO
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Jul 31, 2021

Zuora Q2 2022 Earnings Report

Zuora's Q2 2022 results showed year-over-year revenue growth and strong customer retention.

Key Takeaways

Zuora reported a 15% year-over-year increase in total revenue, reaching $86.5 million, and a 23% increase in subscription revenue, which hit $71.5 million. The dollar-based retention rate improved to 108%. However, the company experienced a GAAP loss from operations of $23.0 million and a non-GAAP loss from operations of $3.9 million.

Total revenue increased by 15% year-over-year to $86.5 million.

Subscription revenue grew by 23% year-over-year to $71.5 million.

Dollar-based retention rate improved to 108% compared to 99% in the previous year.

Customers with ACV equal to or greater than $100,000 reached 694, an 8% year-over-year increase.

Total Revenue
$86.5M
Previous year: $75M
+15.3%
EPS
-$0.04
Previous year: -$0.172
-76.8%
Dollar-based retention rate
108%
Previous year: 99%
+9.1%
Gross Profit
$50.5M
Previous year: $41.9M
+20.5%
Cash and Equivalents
$105M
Previous year: $119M
-11.8%
Free Cash Flow
-$4.36M
Previous year: -$740K
+488.5%
Total Assets
$414M
Previous year: $387M
+7.0%

Zuora

Zuora

Zuora Revenue by Segment

Forward Guidance

Zuora provided guidance for the third quarter and full year fiscal 2022, anticipating subscription revenue of $71.0M - $72.0M for Q3 and $280.0M - $282.0M for the full year, and total revenue of $86.0M - $87.0M for Q3 and $340.0M - $342.0M for the full year.

Positive Outlook

  • Subscription revenue is expected to be $71.0M - $72.0M for Q3.
  • Total revenue is projected to be $86.0M - $87.0M for Q3.
  • Subscription revenue is expected to be $280.0M - $282.0M for the full year.
  • Total revenue is projected to be $340.0M - $342.0M for the full year.
  • Non-GAAP loss from operations is expected to be between ($3.5M) and ($2.5M) for Q3.

Challenges Ahead

  • Guidance is subject to various important cautionary factors, including risks and uncertainties associated with the ongoing COVID-19 pandemic.
  • Non-GAAP loss from operations is expected to be between ($13.0M) and ($11.0M) for the full year.
  • Non-GAAP net loss per share is expected to be between ($0.03) and ($0.02) for Q3.
  • Non-GAAP net loss per share is expected to be between ($0.13) and ($0.11) for the full year.
  • Zuora has not reconciled its guidance for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share because stock-based compensation expense cannot be reasonably calculated or predicted at this time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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