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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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