Zuora Helps Worthpoint Accelerate its Growth Annually and Get to Cash Flow Positive
January 15 2019 - 11:00AM
Business Wire
Zuora, Inc. (NYSE: ZUO), the leading cloud-based subscription
management platform provider, today announced that its customer
Worthpoint was able to accelerate its path to becoming cash flow
positive, growing nearly 40 percent in one year, with the
flexibility and reliability of Zuora® Billing.
It’s no secret that growth rate is one of the most decisive
indicators of success for a SaaS company. According to a recent
McKinsey study “Grow Fast or Die Slow,” growth yields greater
returns and matters more than margins or cost structure.
Organizations like Worthpoint, with the goal to become
multi-million dollar SaaS companies, must make difficult decisions,
weighing the cost against the value of operational
expenditures.
Since its launch in 2007, WorthPoint’s Internet of Stuff™ has
been a treasure trove for collectors to identify, research and
value antiques, art and vintage collectibles. As their digital
commerce business grew to more than 1 billion images, 500 million
web pages, 400 million unique visitors per month, and more than
15,000 paid users, its billing needs became more complex.
An early decision on an insufficient subscription management
platform put Worthpoint’s business at risk. The company suffered
from an overallocation of refunds, unmarked bills, irreconcilable
billing periods, inconsistent revenue numbers, and a terrible user
experience. Worthpoint had to completely rebuild its customer base
and relaunch the business after the first two years.
"We knew Zuora was the best solution for us, but we chose
another company and that decision cost us dearly. The other company
didn't do what they promised, and we ended up losing 40 percent of
our business in the first month. We almost went out of business and
it cost us $1 million to come back from that. It was the worst
decision in the history of WorthPoint," said Will Seippel, CEO
and Founder of WorthPoint Corporation.
Worthpoint implemented the Zuora platform to fix the damage and
get back to cash flow positive. Four years later, with Zuora as its
central system of record, Worthpoint can manage $80,000 of
transaction volume per month. Today, the $5 million business
manages subscriptions, billing, finance, and revenue accounting on
the Zuora platform with a staff of just one. The simplicity of the
Zuora platform helps enables Worthpoint to run all financial
operations without delays or dependencies on the on the IT team.
With minimal staff required to bill and collect revenue, the
company can focus on strategic initiatives to scale the
business.
Neal McAtee, CFO of WorthPoint Corporation said,
“It is so fundamentally important to our business to get
billing decisions right. Zuora helped us discover that we were
undercounting revenue and enabled us to understand why cash
outpaced revenue so drastically. WorthPoint grew revenues 37.5
percent in one year -- and we were equipped to handle this
exponential growth -- with the support of Zuora.”
Worthpoint’s use of the Zuora platform helped the company
achieve the following business goals:
- A cash flow positive business -
Worthpoint was able to increase revenue by reducing time spent on
billing tasks and complex account updates with automated workflows
through the Zuora platform.
- Operational maturity to scale with
growth - Worthpoint is able to automate complex billing
processes for multiple products, high web traffic, and add-ons.
Using the flexible bill run capabilities of the Zuora platform, the
Worthpoint F&A team can apply late fees to accounts, calculate
usage by unique devices, and preview future invoices.
- Faster close periods - The
Worthpoint executive team now has a full view into their business
and can maintain a faster time-to-close each quarter. The Zuora
platform’s metrics engine accurately computes key financials,
giving the Worthpoint CEO on-demand daily sales summaries, billing
statistics like failure rates and average revenue per bill.
Read more about Worthpoint in the company case study here.
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-cash process,
including billing and revenue recognition. Zuora serves more than
1,000 companies around the world, including Box, Komatsu, Rogers,
Schneider Electric, Xplornet and Zendesk. Headquartered in Silicon
Valley, Zuora also operates offices in Atlanta, Boston, Denver, San
Francisco, London, Paris, Beijing, Sydney, Chennai and Tokyo. To
learn more about the Zuora platform, please visit
www.zuora.com.
© 2019 Zuora, Inc. All Rights Reserved. Zuora, Subscription
Economy, Powering the Subscription Economy are trademarks or
registered trademarks of Zuora, Inc. Other names and brands may be
claimed as the property of others. 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/20190115005289/en/
Jayne Gonzalezpress@zuora.com408-348-1087
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