ZUORA Reports Second Quarter FY2024 Earnings Results on July 31, 2023
August 26, 2023
🌥️Earnings Overview
On July 31, 2023, ZUORA ($NYSE:ZUO) reported its earnings results for the second quarter of fiscal year 2024, which ended on August 23, 2023. The company had total revenue of $108.0 million, a 9.4% increase from the year prior. The net income was $-22.6 million compared to a loss of $-29.9 million the previous year.
Stock Price
The stock opened at $9.9 and closed at $9.7, down 2.7% from the previous day’s closing price of $10.0. Investors remain optimistic about the long-term prospects for the company, but cautious in light of the current market environment. ZUORA CEO Tien Tzuo noted that the company continues to expand its customer base and deliver strong product innovation. He also said that the company was focused on continuing to invest in its platform and driving user engagement. He concluded by expressing confidence in the long-term outlook for the company and its ability to continue to deliver value to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zuora. More…
| Total Revenues | Net Income | Net Margin |
| 415.26 | -186.75 | -33.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zuora. More…
| Operations | Investing | Financing |
| -2.85 | 110.45 | 9.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zuora. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 681.85 | 569.12 | 0.82 |
Key Ratios Snapshot
Some of the financial key ratios for Zuora are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | – | -38.3% |
| FCF Margin | ROE | ROA |
| -2.7% | -91.9% | -14.6% |
Analysis
GoodWhale has conducted an in-depth analysis of ZUORA‘s fundamentals using our proprietary Star Chart tool. According to the results, ZUORA is strong in growth, medium in asset and weak in dividend, profitability. Consequently, we have classified ZUORA as ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given these results, it is likely that investors who are drawn to higher-growth companies and can stomach higher risk may be interested in investing in ZUORA. However, the company’s low health score of 3/10 considering its cash flows and debt means that it is less likely to safely ride out any potential crisis without the risk of bankruptcy. More…
Peers
In the market for cloud-based customer relationship management (CRM) software, Zuora Inc faces stiff competition from Everbridge Inc, Consensus Cloud Solutions Inc, and Netcall PLC. All four companies offer similar products and services, but each has its own strengths and weaknesses. Zuora Inc, for example, is known for its ease of use and scalability, while Everbridge Inc is known for its robust features and comprehensive customer support.
– Everbridge Inc ($NASDAQ:EVBG)
Everbridge Inc is a global software company that provides critical communication and enterprise safety applications that help keep people safe and businesses running during critical events. The company has a market cap of 1.06B as of 2022 and a Return on Equity of -16.82%. Everbridge’s products are used by organizations of all sizes, in a variety of industries, across the world.
– Consensus Cloud Solutions Inc ($NASDAQ:CCSI)
Consensus Cloud Solutions Inc is a cloud-based software company that provides solutions for businesses of all sizes. It offers a variety of products and services, including cloud computing, storage, networking, and security. The company has a market cap of 1.12B as of 2022 and a return on equity of -31.25%. Despite its negative ROE, the company’s market cap indicates that it is still a large and successful enterprise.
– Netcall PLC ($LSE:NET)
Netcall PLC is a provider of customer engagement and self-service solutions. The company has a market capitalization of 129.3 million as of 2022 and a return on equity of 7.47%. Netcall PLC’s solutions are used by organizations to improve customer engagement and reduce operational costs. The company’s products include contact center solutions, customer self-service solutions, and back-office automation solutions.
Summary
Zuora’s financial performance for the second quarter of FY2024 was encouraging, with total revenue increasing 9.4% year-over-year to USD 108.0 million. However, net income was still negative at USD -22.6 million, albeit an improvement on the prior year’s loss of -29.9 million. Investors should keep a close eye on Zuora’s continued progress, as the company’s potential for growth and success is considerable. Revenue growth must be maintained in order to achieve profitability, and investors should be confident that Zuora has the strategies in place to make this happen.
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