Zuora, Inc. (NYSE: ZUO), the leading
cloud-based subscription management platform provider, today
announced the launch of Zuora® Revenue, the latest release of
RevPro®, and the only automated revenue recognition application
built for subscription businesses and their ASC 606 and IFRS 15
needs. Fully integrated with the entire Zuora order-to-revenue
(OTR) suite of applications, new Zuora Revenue features enable
companies to achieve a faster quarter close, minimize compliance
risk, and more precisely forecast the revenue impact of business
decisions.
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Automate revenue recognition with the
only order-to-revenue suite built for subscriptions (Graphic:
Business Wire)
Businesses across industries are moving to subscriptions, with
IDC's FutureScape Report predicting that by the end of this year,
50 percent of the world's largest enterprises will see the majority
of their business depend on their ability to create digitally
enhanced products, services, and experiences.
Successful subscription businesses are finding that the key to
growth is giving their subscribers freedom -- allowing them to make
changes anytime to their subscriptions, quotes, orders, and
contracts. In fact, those that give their customers the freedom to
make changes to their subscription services can grow five times
faster than companies that don't, according to data in a Subscribed
Institute Benchmark.
However, enabling subscriber freedom disrupts traditional
approaches to revenue recognition. The Benchmark data shows that
companies see an average of five transaction events per subscriber
per year. In addition, new ASC 606 and IFRS 15 rules for revenue
recognition have vastly increased the work required to assess how
revenue should be recognized, introducing a five-step process
through order to revenue. The combination of volume and complexity
is overwhelming to current systems that were not built for
subscriptions.
The excruciatingly long revenue recognition process is worsened
whenever a subscriber makes a change to their contract. Robert
Kugel, Senior Vice President and Research Director at Ventana
Research, said, “Contracts in subscription businesses are
complex: they have multiple elements and frequently change to suit
the customers’ needs. Companies that derive even some portion of
revenues from subscriptions that have tried using manual revenue
recognition processes have discovered that this method isn’t
scalable or sustainable. Ensuring that the details about
subscriptions in a company’s billing and accounting systems are
exactly the same as the data collected by the front office at the
time orders or changes are received is critical.”
Companies that have not automated billing and revenue
recognition under the new standards have seen roadblocks to their
growth including:
- Long close times resulting from spreadsheets and time-intensive
manual processes which require increased headcount and resources
and are more prone to human error.
- Greater risk of longer audits, errors, and revenue restatements
from the application of complex accounting to inconsistent and
disparate data.
- Inability to properly forecast revenue when business decisions
like pricing and billing changes are implemented without data
visibility across the entire OTR process.
Zuora Revenue is the only order-to-revenue solution that
understands the full range of subscription transactions, is built
around ASC 606 and IFRS 15, and offers a high degree of automation.
The new Zuora Revenue capabilities include:
- Continuous subscription revenue recognition to enable
subscription businesses to achieve a faster quarter close. By
uniting billing and revenue processes, businesses can easily manage
the transactional complexity resulting from customers making
ongoing changes to their subscriptions and revenue recognition can
be automated along every step of the subscription OTR process.
- Regulatory process automation to recognize revenue while
minimizing compliance risk. Automating the process for regulations
such as ASC 606, IFRS 15, Standalone Selling Price (SSP), and
performance obligations under GAAP, enables companies to accurately
manage revenue recognition under new standards to significantly
reduce accounting staff workloads, reduce the risk of accounting
and billing errors, and shorten the close process.
- Real-time subscription data collection to precisely
forecast the revenue impact of business decisions. Enable business
growth and collaborate more efficiently using daily data from
revenue waterfalls to advise on better upstream processes such as
pricing and packaging strategies.
“Our mission is to help every company win in the Subscription
Economy® and now, for the first time, companies can fully automate
their subscription processes from the order all the way through to
revenue recognition. Zuora Revenue now enables continuous
accounting and we have re-architected the traditional linear model
of order-to-cash to expand our value to customers,” said Chris
Battles, Chief Product Officer at Zuora.
Companies across all industries are using the integrated
solution, with early adopters including Unity Software and Command
Alkon.
Felipe Lopez, Director, Revenue Accounting at Unity
Technologies said, “With Zuora Billing and Zuora
Revenue, we now have an end-to-end solution that allows us to
operate our day-to-day and month-end close processes with regard to
billing, collections and revenue accounting with greater efficiency
and accuracy, enabling us to support the rapid scale of our
business. We have also improved our reporting and forecasting
capabilities, based on actual order level activity, as transactions
are processed in our systems. With Zuora Revenue and Zuora Billing
we can deliver real-time reporting to key stakeholders at any time
with the click of a button, something that wasn't previously
possible until we completed our month-end close.”
The completed integration combines Zuora’s industry leading
applications. Zuora Billing was cited as a leader by Forrester in
“The Forrester Wave™: SaaS Billing Solutions, Q4 2019” report and
by IDC in “The IDC MarketScape: Worldwide Subscription Management
2019-2020 Vendor Assessment,” while Zuora RevPro was a top-rated
vendor in the MGI 360 Ratings on Automated Revenue Management.
Mark Thomason, Research Director for IDC responsible for
Digital Business Models and Monetization practice said,
“Zuora’s integration between their CPQ, Billing, and Revenue
applications not only automates the order-to-revenue process for
all subscription businesses, but it also gives these finance teams
the agility and flexibility to drill down and drill back across
their entire upstream and downstream processes. Being able to
analyze and understand recurring revenue faster and accurately now
gives finance teams the time and data they need to collaborate on
better pricing, payment, and cash collection strategies.”
Jason Pikoos, Partner, Financial Operations Practice Leader
at The Connor Group, a Zuora Revenue implementation partner,
said, “We are working with Zuora to address the surging market
demand for quote-to-revenue transformation and automation.
Companies, whether large or growth, are scaling finance and revenue
operations to grow their businesses and seize the sizable
opportunities of the X-as-a-Service Economy. Executing these
strategic objectives requires CFOs to have real-time insight to
their subscription data, including customer lifecycle events,
billing, and revenue recognition.”
About Zuora, Inc.
Zuora provides the leading cloud-based subscription management
platform that functions as a system of record for subscription
businesses across all industries. Powering the Subscription
Economy®, the Zuora platform was architected specifically for
dynamic, recurring subscription business models and acts as an
intelligent subscription management hub that automates and
orchestrates the entire subscription Order to Revenue process
seamlessly across billing and revenue recognition. Zuora serves
more than 1,000 companies around the world, including Box, Rogers,
Schneider Electric, Xplornet and Zendesk. Headquartered in Silicon
Valley, Zuora also operates offices around the world in the U.S.,
EMEA and APAC. To learn more about the Zuora platform, please visit
www.zuora.com.
© 2020 Zuora, Inc. All Rights Reserved. Zuora, Subscribed,
Subscription Economy, Powering the Subscription Economy, and
Subscription Economy Index are trademarks or registered trademarks
of Zuora, Inc. Third-party trademarks mentioned above are owned by
their respective companies. Nothing in this press release should be
construed to the contrary, or as an approval, endorsement or
sponsorship by any third parties of Zuora, Inc. or any aspect of
this press release.
SOURCE: Zuora Financial
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version on businesswire.com: https://www.businesswire.com/news/home/20200407005316/en/
Jayne Gonzalez press@zuora.com 408-348-1087
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