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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.
Zuora
Zuora
Zuora Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional services Revenue
CapyFin.com 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