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Jul 31, 2024
Zuora Q2 2025 Earnings Report
Solid results delivered, driven by subscription revenue growth and margin expansion.
Key Takeaways
Zuora reported a solid second quarter with subscription revenue growing 9% year-over-year and achieving its Rule of 30 goal two quarters ahead of plan. The company remains committed to margin expansion and profitability.
Subscription revenue increased by 9% year-over-year.
GAAP operating margin improved by 8 percentage points year-over-year.
Non-GAAP operating margin increased by 13 percentage points year-over-year.
Operating cash flow increased to $11.4 million compared to $5.4 million last year.
Forward Guidance
Zuora provided guidance for the third quarter and full fiscal year 2025, raising both the revenue outlook and non-GAAP operating income ranges, as well as increasing the target for adjusted free cash flow.
Positive Outlook
- Subscription revenue for Q3 is expected to be between $104.5M - $105.5M.
- Total revenue for Q3 is expected to be between $115.0M - $117.0M.
- Non-GAAP income from operations for Q3 is expected to be between $20.5M - $21.5M.
- Non-GAAP net income per share for Q3 is expected to be between $0.11 - $0.12.
- Adjusted Free Cash Flow for the full year 2025 is expected to be $82.0M+
Historical Earnings Impact
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Avg. Return Before/After Earnings
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