Zuora Issues Financial Targets for Fiscal Year 2025
April 12 2021 - 4:05PM
Business Wire
Company Held 2021 Investor Day with Chegg, Zoom
and IBM
Zuora, Inc., (NYSE:ZUO) the leading subscription management
platform provider, held a virtual Investor Day today, at which
Zuora’s senior leadership and customers and a system integrator
partner gave presentations. The company provided an overview of its
financial and strategic plans and disclosed new financial targets
and key performance indicators (KPIs) for its fiscal year 2025
(ending January 31, 2025).
Zuora’s Investor Day consisted of presentations from Zuora’s
senior leadership team, including:
- Tien Tzuo, Founder & Chief Executive Officer
- Sri Srinivasan, Chief Product & Engineering Officer
- Robbie Traube, Chief Revenue Officer
- Todd McElhatton, Chief Financial Officer
The event also included interviews with Zuora’s customers and an
SI partner, including:
- Jug Bath, CTO of Chegg Learning Services
- Velchamy Sankarlingam, President of Product and Engineering at
Zoom Video Communications
- Matt Candy, Global Managing Partner at IBM
Zuora also set financial targets for fiscal year 2025,
including:
- Subscription revenue growth of 25% or more
- Professional services revenue (as a percent of total revenue)
of less than 15%
- Non-GAAP subscription gross margin of 82% or more
- Non-GAAP operating margin of 10% or more
- Free cash flow margin of 10% to 15%
Zuora also introduced three new KPIs to monitor its progress
with the objective of meeting these targets by the end of fiscal
year 2025:
- Annual recurring revenue (“ARR”) growth of 25% to 30%
- Net Dollar Retention (as defined by current period ARR compared
to prior year’s
ARR from existing customers) of 112% to 115%
- “Rule of 40” (as defined by the sum of subscription revenue
growth rate plus free cash flow margin year-over-year) of 40% or
more
Webcast Information
A replay of the webcast of the Investor Day event is available
in the Investor Relations section of Zuora’s website at
https://investor.zuora.com/events-and-presentations/default.aspx.
This replay will be available through April 12, 2022.
Forward Looking Statements
The Investor Day presentation, webcast and this press release
contain forward-looking statements relating to Zuora’s financial
and strategic plans as well as other statements that refer to
future plans and expectations. Such statements involve a number of
risks and uncertainties. Words such as “anticipates,” “expects,”
“intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,”
“continues,” “may,” “will,” “would,” “should,” “could,” and
variations of such words and similar expressions are intended to
identify forward-looking statements. Statements that refer to or
are based on estimates, forecasts, projections, uncertain events or
assumptions, including statements relating to Zuora’s total
addressable market (“TAM”) or market opportunity, expected benefits
of Zuora’s current and future products, future product offerings,
and anticipated trends in our business or our market segments, also
identify forward-looking statements. Such statements are based on
current expectations and involve many risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied in these forward-looking statements. Important
factors that could cause actual results to differ materially from
the company’s expectations are set forth in Zuora’s Annual Report
on Form 10-K filed with the Securities and Exchange Commission
(“SEC”) on March 31, 2021, as well as other documents that may be
filed or furnished by Zuora from time to time with the SEC.
Non-GAAP Financial Measures
The Investor Day presentation, webcast and this press release
contain certain non-GAAP financial measures, namely non-GAAP
subscription gross margin, total non-GAAP gross margin, non-GAAP
operating margin and free cash flow margin. In accordance with SEC
regulations, you can find the reconciliations to comparable GAAP
measures, in the appendix of the Investor Day presentation.
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, Ford,
Penske Media Corporation, Schneider Electric, Siemens, Xplornet and
Zoom. 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.
© 2021 Zuora, Inc. All Rights Reserved. Zuora, Subscription
Economy, and Powering the Subscription Economy are trademarks or
registered trademarks of Zuora, Inc. Third party trademarks
mentioned above are owned by their respective companies.
Source: Zuora Financial
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version on businesswire.com: https://www.businesswire.com/news/home/20210412005298/en/
Investor Relations Contact: Luana Wolk and Carolyn Bass
investorrelations@zuora.com 415-445-3232 Media Relations Contact:
Jayne Gonzalez press@zuora.com 408-348-1087
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