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Jul 31, 2022
Zuora Q2 2023 Earnings Report
Reported solid results exceeding guidance across key financial metrics, benefiting from a strong customer base and recurring revenue model, further enhanced by the acquisition of Zephr.
Key Takeaways
Zuora reported a solid second quarter for fiscal year 2023, exceeding guidance across key financial metrics. Subscription revenue grew by 17% year-over-year, and total revenue increased by 14% year-over-year.
Subscription revenue was $83.8 million, up 17% year-over-year (19% on a constant currency basis).
Total revenue was $98.8 million, up 14% year-over-year (17% on a constant currency basis).
GAAP loss from operations was $30.2 million, while non-GAAP loss from operations was $0.2 million.
Free cash flow was negative $7.6 million.
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 fiscal year 2023, reflecting the expected acquisition of Zephr.
Positive Outlook
- Third Quarter Fiscal 2023 Subscription revenue is expected to be between $85.5M - $86.5M
- Third Quarter Fiscal 2023 Professional services revenue is expected to be between $14.0M - $15.0M
- Third Quarter Fiscal 2023 Total revenue is expected to be between $99.5M - $101.5M
- Third Quarter Fiscal 2023 Non-GAAP loss from operations is expected to be between ($2.5M) - ($1.5M)
- Third Quarter Fiscal 2023 Non-GAAP net loss per share is expected to be between ($0.06) - ($0.05)
Challenges Ahead
- Fiscal year 2023 free cash flow has been revised to reflect the following expected impacts: a decrease of approximately $16.0 million associated with foreign currency exchange rates; and a decrease of approximately $4.0 million resulting from slightly extended average collection time.
- 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.
- Additionally, 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.
- These statements are forward-looking and actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income