Jul 31, 2023

Zuora Q2 2024 Earnings Report

Reported solid results, executing strategy and delivering on guidance.

Key Takeaways

Zuora reported a solid second quarter, achieving 9% year-over-year revenue growth and demonstrating progress in its strategy to capitalize on the increasing adoption of recurring revenue models.

Subscription revenue increased by 14% year-over-year, or 16% on a constant currency basis.

Total revenue increased by 9% year-over-year, or 11% on a constant currency basis.

Operating cash flow improved to $5.4 million, compared to negative $4.8 million in the previous year.

Adjusted free cash flow improved to $4.0 million, compared to negative $7.5 million in the previous year.

Total Revenue
$108M
Previous year: $98.8M
+9.4%
EPS
$0.07
Previous year: -$0.03
-333.3%
Dollar-based retention rate
107%
Previous year: 111%
-3.6%
Gross Profit
$70.3M
Previous year: $60.1M
+16.9%
Cash and Equivalents
$323M
Previous year: $207M
+56.2%
Free Cash Flow
$4M
Previous year: -$7.6M
-152.6%
Total Assets
$682M
Previous year: $661M
+3.2%

Zuora

Zuora

Forward Guidance

Zuora provided guidance for the third quarter and full fiscal year 2024, anticipating continued growth in subscription revenue, total revenue, and non-GAAP income from operations.

Positive Outlook

  • Subscription revenue is expected to be between $96.5 million and $97.5 million for Q3 2024.
  • Total revenue is projected to be between $107.5 million and $109.5 million for Q3 2024.
  • Non-GAAP income from operations is expected to be between $10.0 million and $11.0 million for Q3 2024.
  • Non-GAAP net income per share is projected to be between $0.05 and $0.06 for Q3 2024.
  • Adjusted Free Cash Flow of $28.0M+