Subscription revenue grew 23%
year-over-year; total revenue grew 15% year-over-year
Zuora, Inc. (NYSE: ZUO), the leading cloud-based subscription
management platform provider, today announced financial results for
its fiscal second quarter ended July 31, 2021.
“I'm very pleased with our Q2 results. We once again delivered a
strong quarter exceeding our guidance for operating metrics
including total revenue, subscription revenue and non-GAAP loss
from operations. The improvement in our dollar-based retention rate
is a clear indicator that our multi-product, land-and-expand
strategy is working. We feel well-positioned and positive about the
future based on the overall momentum and execution we have seen
this quarter,” said Tien Tzuo, founder and CEO of Zuora.
Second Quarter Fiscal 2022 Financial Results:
- Revenue: Total revenue was $86.5 million, an increase of
15% year-over-year. Subscription revenue was $71.5 million, an
increase of 23% year-over-year.
- GAAP Loss from Operations: GAAP loss from operations was
$23.0 million, compared to a loss of $21.5 million in the second
quarter of fiscal 2021.
- Non-GAAP Loss from Operations: Non-GAAP loss from
operations was $3.9 million, compared to a non-GAAP loss from
operations of $0.6 million in the second quarter of fiscal
2021.
- GAAP Net Loss: GAAP net loss was $23.7 million, or 27%
of revenue, compared to a net loss of $20.1 million, or 27% of
revenue, in the second quarter of fiscal 2021. GAAP net loss per
share was $0.19 based on 123.1 million weighted-average shares
outstanding, compared to a net loss per share of $0.17 based on
116.8 million weighted-average shares outstanding in the second
quarter of fiscal 2021.
- Non-GAAP Net Loss: Non-GAAP net loss was $4.6 million,
compared to a non-GAAP net income of $0.8 million in the second
quarter of fiscal 2021. Non-GAAP net loss per share was $0.04 based
on 123.1 million weighted-average shares outstanding, compared to a
non-GAAP net income per share of $0.01 based on 116.8 million
weighted-average shares outstanding in the second quarter of fiscal
2021.
- Cash Flow: Net cash used in operating activities was
$2.6 million, compared to net cash provided by operating activities
of $3.8 million in the second quarter of fiscal 2021.
- Free Cash Flow: Free cash flow was negative $4.4 million
compared to negative $0.7 million in the second quarter of fiscal
2021.
- Cash and Investments: Cash and cash equivalents and
short-term investments were $200.9 million as of July 31,
2021.
A description of non-GAAP financial measures is contained in the
section titled "Explanation of Non-GAAP Financial Measures" below
and a reconciliation of GAAP and non-GAAP financial measures is
contained in the tables below.
Key Metrics and Business Highlights:
- Customers with ACV equal to or greater than $100,000 were 694,
which represents 8% year-over-year growth.
- Dollar-based retention rate was 108%, compared to 99% as of
July 31, 2020.
- Customer usage of Zuora solutions grew, with $18.0 billion in
transaction volume through Zuora’s billing platform during our
second quarter, an increase of 42% year-over-year.
- Notable recent go-lives included HERE Technologies, Monster
Worldwide and Xerox.
- Highlighted customer GoPro’s subscription program hitting
milestone moment of surpassing one million subscribers.
- New customer logos included Daihatsu, Rev.com and Thales.
Financial Outlook:
As of August 25, 2021, we are providing guidance for the third
quarter and full year fiscal 2022 based on current market
conditions and expectations. We emphasize that the guidance is
subject to various important cautionary factors referenced in the
section entitled “Forward-Looking Statements” below, including
risks and uncertainties associated with the ongoing COVID-19
pandemic.
For the third quarter and full fiscal year 2022, Zuora currently
expects the following results:
Third Quarter
Fiscal 2022
Subscription revenue
$71.0M - $72.0M
$280.0M - $282.0M
Total revenue
$86.0M - $87.0M
$340.0M - $342.0M
Non-GAAP loss from operations
($3.5M) - ($2.5M)
($13.0M) - ($11.0M)
Non-GAAP net loss per share¹
($0.03) - ($0.02)
($0.13) - ($0.11)
(1) Non-GAAP net loss per share was computed assuming 125.2
million and 124.3 million weighted-average shares outstanding for
the third quarter and full year fiscal 2022, respectively.
These statements are forward-looking and actual results may
differ materially. Refer to the “Forward-Looking Statements” safe
harbor section below for information on the factors that could
cause our actual results to differ materially from these
forward-looking statements.
Zuora has not reconciled its guidance for non-GAAP loss from
operations to GAAP loss from operations or non-GAAP net loss per
share to GAAP net loss per share because stock-based compensation
expense cannot be reasonably calculated or predicted at this time.
Accordingly, a reconciliation is not available without unreasonable
effort.
Webcast and Conference Call Information:
Zuora will host a conference call for investors on August 25,
2021 at 5:00 p.m. Eastern Time to discuss the company’s financial
results and business highlights. Investors are invited to listen to
a live webcast of the conference call by visiting
https://investor.zuora.com. A replay of the webcast will be
available through August 24, 2022. The call can also be accessed
live via phone by dialing (844) 484-8185 or, for international
callers, (647) 689-5143 with conference ID 8086231. An audio replay
will be available shortly after the call and can be accessed by
dialing (800) 585-8367 or, for international callers, (416)
621-4642. The passcode for the replay is 8086231. The replay will
be available through September 1, 2021.
Explanation of Non-GAAP Financial Measures:
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press
release and the accompanying tables contain non-GAAP financial
measures, including non-GAAP cost of subscription revenue, non-GAAP
cost of professional services revenue, non-GAAP gross profit,
non-GAAP subscription gross margin, non-GAAP professional services
gross margin, non-GAAP operating margin, non-GAAP total gross
margin, non-GAAP research and development expense, non-GAAP sales
and marketing expense, non-GAAP general and administrative expense,
non-GAAP loss from operations, non-GAAP net (loss) income, non-GAAP
net (loss) income per share, and free cash flow. The presentation
of these financial measures is not intended to be considered in
isolation or as a substitute for, or superior to, financial
information prepared and presented in accordance with GAAP.
We use non-GAAP financial measures in conjunction with GAAP
measures as part of our overall assessment of our performance,
including the preparation of our annual operating budget and
quarterly forecasts, to evaluate the effectiveness of our business
strategies and to communicate with our Board of Directors
concerning our financial performance. We believe these non-GAAP
measures provide investors consistency and comparability with our
past financial performance and facilitate period-to-period
comparisons of our operating results. We also believe these
non-GAAP measures are useful in evaluating our operating
performance compared to that of other companies in our industry, as
they generally eliminate the effects of certain items that may vary
for different companies for reasons unrelated to overall operating
performance.
We exclude the following items from one or more of our non-GAAP
financial measures:
- Stock-based compensation expense. We exclude stock-based
compensation expense, which is a non-cash expense, because we
believe that excluding this item provides meaningful supplemental
information regarding operational performance. In particular,
stock-based compensation expense is not comparable across companies
given it is calculated using a variety of valuation methodologies
and subjective assumptions.
- Amortization of acquired intangible assets. We exclude
amortization of acquired intangible assets, which is a non-cash
expense, because we do not believe it has a direct correlation to
the operation of our business.
- Internal-use software. We exclude non-cash charges for
impairments of internal-use software from certain of our non-GAAP
financial measures. Impairment charges can vary significantly in
terms of amount and timing and we do not consider these charges
indicative of our current or past operating performance. Moreover,
we believe that excluding the effects of these charges allows
investors to make more meaningful comparisons between our operating
results and those of other companies. Beginning in the second
quarter of fiscal year 2022, we no longer exclude non-cash
adjustments for capitalization and amortization of internal-use
software from our non-GAAP financial measures. We believe that this
change more closely aligns our reported financial measures with
current industry practice.
- Charitable donations. We exclude expenses associated with
charitable donations of our common stock from certain of our
non-GAAP financial measures. We believe that excluding these
non-cash expenses allows investors to make more meaningful
comparisons between our operating results and those of other
companies.
- Certain litigation. We exclude non-recurring charges and
benefits, net of currently expected insurance recoveries, including
litigation expenses and settlements, related to litigation matters
that are outside of the ordinary course of our business. We believe
these charges and benefits do not have a direct correlation to the
operations of our business and may vary in size depending on the
timing and results of such litigation and related settlements. We
began excluding these non-recurring charges and benefits from our
non-GAAP financial measures in the second quarter of fiscal 2021 as
litigation expenses significantly increased, specifically relating
to our ongoing securities class actions and derivative
litigation.
Additionally, Zuora’s management believes that the free cash
flow non-GAAP measure is meaningful to investors because management
reviews cash flows generated from operations after taking into
consideration capital expenditures, net of insurance recoveries, as
these net expenditures are considered to be a necessary component
of ongoing operations. Insurance recoveries include amounts paid to
us for property and equipment that were damaged in January 2020 at
our corporate headquarters.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. The non-GAAP measures we use may be different from
non-GAAP financial measures used by other companies, limiting their
usefulness for comparison purposes. We compensate for these
limitations by providing specific information regarding the GAAP
items excluded from these non-GAAP financial measures.
Operating Metrics:
Annual Contract Value (ACV). We define ACV as the subscription
revenue we would contractually expect to recognize from a customer
over the next twelve months, assuming no increases or reductions in
their subscriptions.
Dollar-based Retention Rate. We calculate our dollar-based
retention rate as of a period end by starting with the sum of the
ACV from all customers as of twelve months prior to such period
end, or prior period ACV. We then calculate the sum of the ACV from
these same customers as of the current period end, or current
period ACV. Current period ACV includes any upsells and also
reflects contraction or attrition over the trailing twelve months
but excludes revenue from new customers added in the current
period. We then divide the current period ACV by the prior period
ACV to arrive at our dollar-based retention rate.
Forward-Looking Statements:
This press release contains “forward-looking statements” that
involve a number of risks and uncertainties, including but not
limited to, statements regarding our GAAP and non-GAAP guidance for
the third fiscal quarter and full fiscal 2022 and financial outlook
and market positioning. Words such as “believes,” “may,” “will,”
“estimates,” “potential,” “continues,” “anticipates,” “intends,”
“expects,” “could,” “would,” “projects,” “plans,” “targets,” and
variations of such words and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are
based on management's expectations as of the date of this filing
and are subject to a number of risks, uncertainties and
assumptions, many of which involve factors or circumstances that
are beyond our control. Our actual results could differ materially
from those stated or implied in forward-looking statements due to a
number of factors, including but not limited to, risks detailed in
our Form 10-Q filed with the Securities and Exchange Commission on
June 4, 2021 as well as other documents that may be filed by us
from time to time with the Securities and Exchange Commission. In
particular, the following factors, among others, could cause
results to differ materially from those expressed or implied by
such forward-looking statements: the impact to the economy, our
customers and our business due to the ongoing COVID-19 pandemic; we
may be unable to attract new customers and expand sales to existing
customers; we may not be able to manage our future growth
effectively; the shift by companies to subscription business models
may develop slower than we expect; we have a history of net losses
and may not achieve or sustain profitability; we face intense
competition in our markets and may not be able to compete
effectively; our products may fail to gain market acceptance or our
product development efforts may be unsuccessful; customers may fail
to successfully deploy our solution after entering into a
subscription agreement with us; we may not be able to develop and
release new products and services, or successful enhancements, new
features and modifications to our existing products and services;
the risk of loss of key employees; our sales and product
initiatives may not be successful or the expected benefits of such
initiatives may not be achieved in a timely manner; challenges
related to growing our relationships with strategic partners such
as systems integrators and their effectiveness in selling our
products; our security measures may be breached or our products may
be perceived as not being secure; our products may fail to gain, or
lose, market acceptance; we may experience interruptions or
performance problems, including a service outage, associated with
our technology; we may be unable to adequately protect our
intellectual property; current and future litigation including our
current shareholder litigation could have a material adverse impact
on our financial condition; general political or destabilizing
events, including war, conflict or acts of terrorism; other
business effects, including those related to industry, market,
economic, political, regulatory and global health conditions,
changes in foreign exchange rates; weakened global economic
conditions may adversely affect our industry; and other risks and
uncertainties. The forward-looking statements included in this
press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments will
cause our views to change. We undertake no intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release. Additionally, these forward-looking statements,
particularly our guidance, involve risk, uncertainties and
assumptions, including those related to the impact of the COVID-19
pandemic on our business and global economic conditions.
Uncertainties that we may face include, but are not limited to, our
ability to achieve our long-term plans and key initiatives,
requests for extended billing and payment terms from customers
affected by the COVID-19 pandemic, the timeframes for and severity
of the impact of the pandemic on our customers’ purchasing and
renewal decisions, and the length of our sales cycles, particularly
for customers in certain industries highly affected by the
pandemic.
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
across billing, collections 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, 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
ZUORA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except per
share data)
(unaudited)
Three Months Ended
July 31,
Six Months Ended
July 31,
2021
2020
2021
2020
Revenue:
Subscription
$
71,498
$
58,312
$
136,640
$
115,208
Professional services
14,989
16,677
30,176
33,679
Total revenue
86,487
74,989
166,816
148,887
Cost of revenue:
Subscription
17,268
14,401
32,911
28,016
Professional services
18,724
18,674
35,802
37,356
Total cost of revenue
35,992
33,075
68,713
65,372
Gross profit
50,495
41,914
98,103
83,515
Operating expenses:
Research and development
20,860
19,427
39,827
36,970
Sales and marketing
36,261
28,608
68,126
57,104
General and administrative
16,376
15,383
30,561
28,648
Total operating expenses
73,497
63,418
138,514
122,722
Loss from operations
(23,002
)
(21,504
)
(40,411
)
(39,207
)
Interest and other (expense) income,
net
(453
)
1,936
(332
)
2,314
Loss before income taxes
(23,455
)
(19,568
)
(40,743
)
(36,893
)
Income tax provision
238
554
611
717
Net loss
(23,693
)
(20,122
)
(41,354
)
(37,610
)
Comprehensive loss:
Foreign currency translation
adjustment
(174
)
338
(259
)
(89
)
Unrealized (loss) gain on
available-for-sale securities
—
(74
)
(34
)
83
Comprehensive loss
$
(23,867
)
$
(19,858
)
$
(41,647
)
$
(37,616
)
Net loss per share, basic and diluted
$
(0.19
)
$
(0.17
)
$
(0.34
)
$
(0.32
)
Weighted-average shares outstanding used
in calculating net loss per share, basic and diluted
123,134
116,838
122,259
115,998
ZUORA, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
July 31, 2021
January 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
104,589
$
94,110
Short-term investments
96,316
92,484
Accounts receivable, net
56,239
78,860
Deferred commissions, current portion
13,085
12,712
Prepaid expenses and other current
assets
18,842
15,574
Total current assets
289,071
293,740
Property and equipment, net
31,195
33,369
Operating lease right-of-use assets
46,248
47,085
Purchased intangibles, net
4,560
3,928
Deferred commissions, net of current
portion
21,505
21,905
Goodwill
17,632
17,632
Other assets
3,414
3,848
Total assets
$
413,625
$
421,507
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
3,720
$
2,249
Accrued expenses and other current
liabilities
14,749
14,550
Accrued employee liabilities
27,382
29,470
Debt, current portion
3,882
4,397
Deferred revenue, current portion
118,920
127,701
Operating lease liabilities, current
portion
10,883
9,630
Total current liabilities
179,536
187,997
Debt, net of current portion
—
1,666
Deferred revenue, net of current
portion
1,107
1,529
Operating lease liabilities, net of
current portion
50,794
53,590
Deferred tax liabilities
1,928
1,929
Other long-term liabilities
2,918
2,883
Total liabilities
236,283
249,594
Stockholders’ equity:
Class A common stock
12
11
Class B common stock
1
1
Additional paid-in capital
682,202
635,127
Accumulated other comprehensive income
503
796
Accumulated deficit
(505,376
)
(464,022
)
Total stockholders’ equity
177,342
171,913
Total liabilities and stockholders’
equity
$
413,625
$
421,507
ZUORA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended July
31,
2021
2020
Cash flows from operating
activities:
Net loss
$
(41,354
)
$
(37,610
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation, amortization and
accretion
8,496
7,147
Stock-based compensation
31,866
29,160
Provision for credit losses
1,368
1,744
Donation of common stock to charitable
foundation
1,000
1,000
Amortization of deferred commissions
7,859
5,455
Reduction in carrying amount of
right-of-use assets
4,760
4,229
Other
426
181
Changes in operating assets and
liabilities:
Accounts receivable
21,253
18,704
Prepaid expenses and other assets
(3,216
)
716
Deferred commissions
(8,193
)
(5,571
)
Accounts payable
1,513
(1,887
)
Accrued expenses and other liabilities
51
(1,073
)
Accrued employee liabilities
(2,088
)
2,068
Deferred revenue
(9,203
)
(12,747
)
Operating lease liabilities
(6,910
)
(4,725
)
Net cash provided by operating
activities
7,628
6,791
Cash flows from investing
activities:
Purchases of property and equipment
(3,697
)
(9,950
)
Insurance proceeds for damaged property
and equipment
344
250
Purchase of intangible assets
(1,349
)
—
Purchases of short-term investments
(53,650
)
(24,376
)
Sales of short-term investments
—
2,511
Maturities of short-term investments
49,492
79,205
Net cash (used in) provided by investing
activities
(8,860
)
47,640
Cash flows from financing
activities:
Proceeds from issuance of common stock
upon exercise of stock options, net of repurchases of unvested
common stock
10,187
7,989
Proceeds from issuance of common stock
under employee stock purchase plan
4,005
4,214
Principal payments on long-term debt
(2,222
)
(2,220
)
Net cash provided by financing
activities
11,970
9,983
Effect of exchange rates on cash and cash
equivalents
(259
)
(89
)
Net increase in cash and cash
equivalents
10,479
64,325
Cash and cash equivalents, beginning of
period
94,110
54,275
Cash and cash equivalents, end of
period
$
104,589
$
118,600
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except
percentages and per share data)
(unaudited)
Three Months Ended July 31,
20211
GAAP
Stock-based
Compensation
Amortization of Acquired
Intangibles
Charitable
Contribution
Certain Litigation
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
17,268
$
(1,534
)
$
(519
)
$
—
$
—
$
15,215
Cost of professional services revenue
18,724
(2,664
)
—
—
—
16,060
Gross profit
50,495
4,198
519
—
—
55,212
Operating expenses:
Research and development
20,860
(5,243
)
—
—
—
15,617
Sales and marketing
36,261
(5,615
)
—
—
—
30,646
General and administrative
16,376
(3,013
)
—
(1,000
)
526
12,889
Loss from operations
(23,002
)
18,069
519
1,000
(526
)
(3,940
)
Net loss
$
(23,693
)
$
18,069
$
519
$
1,000
$
(526
)
$
(4,631
)
Net loss per share, basic and diluted²
$
(0.19
)
$
(0.04
)
Gross margin
58
%
64
%
Subscription gross margin
76
%
79
%
Professional services gross margin
(25
)%
(7
)%
Operating margin
(27
)%
(5
)%
Three Months Ended July 31,
20201
GAAP
Stock-based
Compensation
Amortization of Acquired
Intangibles
Charitable
Contribution
Certain Litigation
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
14,401
$
(1,465
)
$
(423
)
$
—
$
—
$
12,513
Cost of professional services revenue
18,674
(3,132
)
—
—
—
15,542
Gross profit
41,914
4,597
423
—
—
46,934
Operating expenses:
Research and development
19,427
(5,945
)
—
—
—
13,482
Sales and marketing
28,608
(4,848
)
—
—
—
23,760
General and administrative
15,383
(2,886
)
—
(1,000
)
(1,235
)
10,262
Loss from operations
(21,504
)
18,276
423
1,000
1,235
(570
)
Net (loss) income
$
(20,122
)
$
18,276
$
423
$
1,000
$
1,235
$
812
Net (loss) income per share, basic and
diluted²
$
(0.17
)
$
0.01
Gross margin
56
%
63
%
Subscription gross margin
75
%
79
%
Professional services gross margin
(12
)%
7
%
Operating margin
(29
)%
(1
)%
(1) Beginning with the second quarter ended July 31, 2021, we no
longer exclude non-cash adjustments for capitalization and
amortization of internal-use software from our non-GAAP financial
measures. Our non-GAAP financial measures for the three months
ended July 31, 2020 were recast to conform to the updated
methodology for comparison purposes. For the three months ended
July 31, 2021 and 2020, we did not have any non-cash charges for
impairments of internal-use software.
(2) GAAP and Non-GAAP net (loss) income per share are calculated
based upon 123,134 and 116,838 basic and diluted weighted-average
shares of common stock for the three months ended July 31, 2021 and
2020, respectively.
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands, except
percentages and per share data)
(unaudited)
Six Months Ended July 31,
20211
GAAP
Stock-based
Compensation
Amortization of Acquired
Intangibles
Charitable
Contribution
Certain Litigation
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
32,911
$
(2,577
)
$
(942
)
$
—
$
—
$
29,392
Cost of professional services revenue
35,802
(4,665
)
—
—
—
31,137
Gross profit
98,103
7,242
942
—
—
106,287
Operating expenses:
Research and development
39,827
(9,772
)
—
—
—
30,055
Sales and marketing
68,126
(9,695
)
—
—
—
58,431
General and administrative
30,561
(5,157
)
—
(1,000
)
(283
)
24,121
Loss from operations
(40,411
)
31,866
942
1,000
283
(6,320
)
Net loss
$
(41,354
)
$
31,866
$
942
$
1,000
$
283
$
(7,263
)
Net loss per share, basic and diluted²
$
(0.34
)
$
(0.06
)
Gross margin
59
%
64
%
Subscription gross margin
76
%
78
%
Professional services gross margin
(19
)%
(3
)%
Operating margin
(24
)%
(4
)%
Six Months Ended July 31,
20201
GAAP
Stock-based
Compensation
Amortization of Acquired
Intangibles
Charitable
Contribution
Certain Litigation
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
28,016
$
(2,317
)
$
(846
)
$
—
$
—
$
24,853
Cost of professional services revenue
37,356
(4,782
)
—
—
—
32,574
Gross profit
83,515
7,099
846
—
—
91,460
Operating expenses:
Research and development
36,970
(9,487
)
—
—
—
27,483
Sales and marketing
57,104
(7,853
)
—
—
—
49,251
General and administrative
28,648
(4,721
)
—
(1,000
)
(1,235
)
21,692
Loss from operations
(39,207
)
29,160
846
1,000
1,235
(6,966
)
Net loss
$
(37,610
)
$
29,160
$
846
$
1,000
$
1,235
$
(5,369
)
Net loss per share, basic and diluted²
$
(0.32
)
$
(0.05
)
Gross margin
56
%
61
%
Subscription gross margin
76
%
78
%
Professional services gross margin
(11
)%
3
%
Operating margin
(26
)%
(5
)%
(1) Beginning with the second quarter ended July 31, 2021, we no
longer exclude non-cash adjustments for capitalization and
amortization of internal-use software from our non-GAAP financial
measures. Our non-GAAP financial measures for the six months ended
July 31, 2020 were recast to conform to the updated methodology for
comparison purposes. For the six months ended July 31, 2021 and
2020, we did not have any non-cash charges for impairments of
internal-use software.
(2) GAAP and Non-GAAP net loss per share are calculated based
upon 122,259 and 115,998 basic and diluted weighted-average shares
of common stock for the six months ended July 31, 2021 and 2020,
respectively.
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands)
(unaudited)
Free Cash Flow
Three Months Ended July
31,
2021
2020
Net cash (used in) provided by operating
activities
$
(2,623
)
$
3,840
Less:
Purchases of property and equipment, net
of insurance recoveries
(1,732
)
(4,580
)
Free cash flow
$
(4,355
)
$
(740
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210825005789/en/
Investor Relations Contact: Luana Wolk
investorrelations@zuora.com 650-419-1377
Media Relations Contact: Margaret Pack press@zuora.com
312-826-6529
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