Full year subscription revenue grew 13%
year-over-year, 15% on a constant currency basis
Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern
businesses, today announced financial results for its fiscal fourth
quarter and full year ended January 31, 2024.
“Fiscal 2024 was a year of balanced growth and profitability
where we accelerated new customer acquisition by focusing on
smaller, faster lands,” said Tien Tzuo, Founder and CEO at Zuora.
“We improved adjusted free cash flow by $72 million and expanded
our non-GAAP operating margin by 10 percentage points, putting
Zuora in a stronger position as we enter a new fiscal year.”
Fourth Quarter Fiscal 2024 Financial Results:
- Revenue: Subscription revenue was $100.2 million, an
increase of 12% year-over-year and total revenue was $110.7
million, an increase of 7% year-over-year.
- GAAP Loss from Operations: GAAP loss from operations was
$17.2 million, compared to a loss from operations of $99.7 million
in the fourth quarter of fiscal 2023.
- Non-GAAP Income from Operations: Non-GAAP income from
operations was $15.9 million, compared to non-GAAP income from
operations of $2.2 million in the fourth quarter of fiscal
2023.
- GAAP Net Loss: GAAP net loss was $20.8 million, or 19%
of revenue, compared to a net loss of $107.9 million, or 105% of
revenue, in the fourth quarter of fiscal 2023. GAAP net loss per
share was $0.14 based on 144.2 million weighted-average shares
outstanding, compared to a net loss per share of $0.80 based on
134.3 million weighted-average shares outstanding in the fourth
quarter of fiscal 2023.
- Non-GAAP Net Income (Loss): Non-GAAP net income was
$16.7 million, compared to a non-GAAP net loss of $5.8 million in
the fourth quarter of fiscal 2023. Non-GAAP net income per share
was $0.12 based on 144.2 million weighted-average shares
outstanding, compared to a non-GAAP net loss per share of $0.04
based on 134.3 million weighted-average shares outstanding in the
fourth quarter of fiscal 2023.
- Cash Flow: Net cash provided by operating activities was
$16.9 million, compared to net cash used in operating activities of
$18.0 million in the fourth quarter of fiscal 2023.
- Adjusted Free Cash Flow: Adjusted free cash flow was
$14.6 million compared to negative $16.9 million in the fourth
quarter of fiscal 2023.
- Cash and Investments: Cash and cash equivalents and
short-term investments were $514.2 million as of January 31,
2024.
Full Year Fiscal 2024 Financial Results:
- Revenue: Subscription revenue was $383.4 million, an
increase of 13% year-over-year and 15% on a constant currency
basis. Total revenue was $431.7 million, an increase of 9%
year-over-year and 10% on a constant currency basis.
- GAAP Loss from Operations: GAAP loss from operations was
$64.4 million, compared to a GAAP loss from operations of $187.5
million in fiscal 2023.
- Non-GAAP Income from Operations: Non-GAAP income from
operations was $47.5 million, compared to a non-GAAP income from
operations of $2.5 million in fiscal 2023.
- GAAP Net Loss: GAAP net loss was $68.2 million, or 16%
of revenue, compared to a GAAP net loss of $198.0 million, or 50%
of revenue, in fiscal 2023. GAAP net loss per share was $0.49 based
on 140.1 million weighted-average shares outstanding, compared to a
GAAP net loss per share of $1.51 based on 131.4 million
weighted-average shares outstanding in fiscal 2023.
- Non-GAAP Net Income (Loss): Non-GAAP net income was
$45.9 million, compared to a non-GAAP net loss of $17.2 million in
fiscal 2023. Non-GAAP net income per share was $0.33 based on 140.1
million weighted-average shares outstanding, compared to a non-GAAP
net loss per share of $0.13 based on 131.4 million weighted-average
shares outstanding in fiscal 2023.
- Cash Flow: Net cash used in operating activities was
$18.8 million, compared to net cash used in operating activities of
$20.6 million in fiscal 2023.
- Adjusted Free Cash Flow: Adjusted free cash flow was
$44.3 million compared to negative $27.8 million in fiscal
2023.
Descriptions of non-GAAP financial measures are contained in the
section titled "Explanation of Non-GAAP Financial Measures" below
and reconciliations of GAAP and non-GAAP financial measures are
contained in the tables below.
Fourth Quarter Key Metrics and Business Highlights:
- Customers with annual contract value (ACV) equal to or greater
than $250,000 were 461, up from 431 as of January 31, 2023.
- Dollar-based Retention Rate (DBRR) was 106%, compared to 108%
as of January 31, 2023.
- Annual Recurring Revenue (ARR) was $403.1 million compared to
$365.0 million as of January 31, 2023, representing ARR growth of
10%.
- Zuora expanded its partnership with Avalara to help customers
meet complex e-invoicing mandates through Zuora. As these new
regulations continue to be adopted around the world, compliance
will become critical for international expansion.
- New customers, expansions and go lives include Toast, Infor,
Sony Network Communications, TELUS Corporation and The Associated
Press.
Financial Outlook:
As of February 28, 2024, we are providing guidance for the first
quarter and full fiscal year 2025 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.
For the first quarter and full fiscal year 2025, Zuora currently
expects the following results:
First Quarter
Fiscal 2025
Subscription revenue
$98.0M - $99.0M
$410.0M - $414.0M
Professional services revenue
$9.8M - $10.8M
$41.0M - $45.0M
Total revenue
$107.8M - $109.8M
$451.0M - $459.0M
Non-GAAP income from operations1
$14.0M - $16.0M
$79.0M - $81.0M
Non-GAAP net income per share1,2
$0.06 - $0.07
$0.40 - $0.42
ARR growth3
8% - 10%
Dollar-based Retention Rate3
104% - 106%
Adjusted Free Cash Flow1
$80.0M+
(1) For information on how we
derive our non-GAAP financial measures, see the section titled
"Explanation of Non-GAAP Financial Measures" below. Zuora has not
reconciled its guidance for non-GAAP income from operations to GAAP
loss from operations or non-GAAP net income per share to GAAP net
loss per share because stock-based compensation expense cannot be
reasonably calculated or predicted at this time. Additionally,
adjusted free cash flow has not been reconciled to operating cash
flows as it cannot be reasonably calculated or predicted at this
time. Accordingly, a reconciliation of these non-GAAP measures is
not available without unreasonable effort.
(2) Non-GAAP net income per share
was computed assuming 146.9 million and 151.5 million
weighted-average shares outstanding for the first quarter and full
fiscal year 2025, respectively.
(3) Refer to the "Explanation of
Key Operational and Financial Metrics" section below for how these
metrics are calculated.
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.
Explanation of Key Operational and Financial 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. We define the number of customers at the end
of any particular period as the number of parties or organizations
that have entered into a distinct subscription contract with us and
for which the term has not ended. Each party with whom we have
entered into a distinct subscription contract is considered a
unique customer, and in some cases, there may be more than one
customer within a single organization.
Dollar-based Retention Rate (DBRR). We calculate DBRR 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.
Annual Recurring Revenue (ARR). ARR represents the annualized
recurring value at the time of initial booking or contract
modification for all active subscription contracts at the end of a
reporting period. ARR excludes the value of non-recurring revenue
such as professional services revenue as well as contracts with new
customers with a term of less than one year. ARR should be viewed
independently of revenue and deferred revenue, and is not intended
to be a substitute for, or combined with, any of these items. ARR
growth is calculated by dividing the ARR as of a period end by the
ARR for the corresponding period end of the prior fiscal year.
Webcast and Conference Call Information:
Zuora will host a conference call for investors on February 28,
2024 at 2:00 p.m. Pacific Time / 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 February 28, 2025. The call can also be
accessed live via phone by the toll-free dial-in number: 1 (888)
596-4144 or toll dial-in number: 1 (646) 968-2525 with conference
ID 8022374. An audio replay will be available shortly after the
call and can be accessed by dialing 1 (800) 770-2030 or 1 (609)
800-9909 with conference ID 8022374 available from February 28,
2024 at 4:00 p.m. PT to March 6, 2024 at 11:59 p.m. PT.
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 subscription gross margin; non-GAAP cost of professional
services revenue; non-GAAP professional services gross margin;
non-GAAP gross profit; non-GAAP gross margin; non-GAAP income from
operations; non-GAAP operating margin; non-GAAP net income (loss);
non-GAAP net income (loss) per share; adjusted free cash flow; and
subscription revenue and total revenue that exclude the impact of
foreign currency exchange rate fluctuations (constant currency
basis). 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.
- Charitable contributions. We exclude expenses associated with
charitable donations of our common stock. We believe that excluding
these non-cash expenses allows investors to make more meaningful
comparisons between our operating results and those of other
companies.
- Shareholder litigation. We exclude non-recurring charges and
benefits, net of insurance recoveries, including litigation
expenses and settlements, related to shareholder 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.
- Asset impairment. We exclude non-cash charges for impairment of
assets, including impairments related to internal-use software,
office leases, and acquired intangible assets. 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.
- Change in fair value of debt conversion and warrant
liabilities. We exclude fair value adjustments related to the debt
conversion and warrant liabilities, which are non-cash gains or
losses, as they can fluctuate significantly with changes in our
stock price and market volatility, and do not reflect the
underlying cash flows or operational results of the business.
- Acquisition-related transactions. We exclude
acquisition-related transactions (including integration-related
charges) that are not related to our ongoing operations, including
expenses we incurred and gains or losses recognized on contingent
consideration related to our acquisition of Zephr. We do not
consider these transactions reflective of our core business or
ongoing operating performance.
- Workforce reductions. We exclude charges related to workforce
reduction plans, including severance, health care and related
expenses. We believe these charges are not indicative of our
continuing operations.
Additionally, we disclose "adjusted free cash flow", which is a
non-GAAP measure that excludes acquisition-related costs (including
integration-related charges) and expenses related to non-ordinary
course litigation (including settlement charges) from GAAP
operating cash flows, and includes capital expenditures. We believe
this measure is meaningful to investors because management reviews
cash flows generated from operations excluding such expenditures
that are not related to our ongoing operations.
Zuora also provides subscription revenue and total revenue,
including year-over-year growth rates, adjusted to remove the
impact of foreign currency rate fluctuations, which we refer to as
constant currency. We believe providing revenue on a constant
currency basis helps our investors to better understand our
underlying performance. We calculate constant currency in a given
period by applying the average currency exchange rates in the
comparable period of the prior year to the local currency revenue
in the current period.
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.
Forward-Looking Statements:
Zuora’s Financial Outlook and other statements in this release,
other than statements of historical fact, that refer to future
plans and expectations are forward-looking statements that involve
a number of risks and uncertainties. Words such as “may,” “will,”
“potential,” “anticipates,” “expects,” “could,” “would,” "when,"
“projects,” “plans,” “targets,” "may affect," "assuming" and
variations of such words and similar expressions are intended to
identify forward-looking statements. Forward-looking statements in
this release include our financial outlook for the first quarter
and full year fiscal 2025 and statements regarding our top line
growth and international expansion. 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
December 7, 2023 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: our ability to attract new
customers and expand sales to existing customers; trends in
revenue, cost of revenue and gross margin; adverse changes on our
business and financial condition due to macroeconomic or market
conditions, as well as geopolitical conditions and destabilizing
events, including inflation, rising interest rates, banking system
instability, debt ceiling negotiations, potential government
shutdowns and wars; managing our future growth and profitability
plans effectively; market acceptance of monetization platform
software and related solutions, as well as consumer adoption of
products and services that are provided through such solutions;
trends and expectations in our operating and financial metrics,
including customers with annual contract value equal to or greater
than $250,000, Dollar-based Retention Rate, Annual Recurring
Revenue, and growth of and within our customer base; future
acquisitions, the anticipated benefits of such acquisitions and our
ability to integrate the operations and technology of any acquired
company; industry trends, projected growth, or trend analysis,
including the shift to subscription business models; our
investments in our platform and the cost of third-party hosting
fees; the expansion and functionality of our technology offering,
including expected benefits of such products and technology, and
the timeliness of production of such products and technology;
challenges related to growing our relationships with strategic
partners such as systems integrators and their effectiveness in
selling our products; the risk of loss of key employees; trends in
operating expenses, including research and development expense,
sales and marketing expense, and general and administrative
expense, and expectations regarding these expenses as a percentage
of revenue; our ability to compete effectively; our history of net
losses and our ability to achieve or sustain profitability;
currency exchange rate fluctuations; our products not gaining
market acceptance or losing market acceptance; our product
development efforts may be unsuccessful; our debt obligations; our
ability to develop and release new products and services, or
successful enhancements, new features and modifications to our
existing products and services; our ability to effectively develop
and use artificial intelligence in our platform and business; our
customers successfully deploying our solution; our sales and
product initiatives may not be successful or the expected benefits
of such initiatives may not be achieved in a timely manner; our
security measures may be breached or our products may be perceived
as not being secure; our ability to adequately protect our
intellectual property; the impact of actions we are taking to
improve operational efficiencies and operating costs; we may
experience interruptions or performance problems, including a
service outage, associated with our technology; litigation and
related costs; other business effects, including those related to
industry, market, economic, political, regulatory and global health
conditions 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.
About Zuora, Inc.
Zuora provides a leading monetization suite for modern
businesses across all industries, enabling companies to unlock and
grow customer-centric business models. Zuora serves as an
intelligent hub that monetizes and orchestrates the complete quote
to cash and revenue recognition process at scale. Through its
industry leading technology and expertise, Zuora helps more than
1,000 companies around the world, including BMC Software, Box,
Caterpillar, General Motors, Penske Media Corporation, Schneider
Electric, Siemens and Zoom nurture and monetize direct, digital
customer relationships. Headquartered in Silicon Valley, Zuora
operates offices around the world in the Americas, EMEA and APAC.
To learn more about the Zuora monetization suite, please visit
www.zuora.com.
© 2024 Zuora, Inc. All Rights Reserved. Zuora, Subscribed,
Subscription Economy, Powering the Subscription Economy,
Subscription Economy Index, Zephr, and Subscription Experience
Platform 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)
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
(unaudited)
(unaudited)
(unaudited)
Revenue:
Subscription
$
100,164
$
89,513
$
383,396
$
338,391
Professional services
10,505
13,528
48,265
57,696
Total revenue
110,669
103,041
431,661
396,087
Cost of revenue:
Subscription1
22,295
21,070
84,599
81,094
Professional services1
14,524
16,995
62,375
72,135
Total cost of revenue
36,819
38,065
146,974
153,229
Gross profit
73,850
64,976
284,687
242,858
Operating expenses:
Research and development1
28,860
24,925
108,288
102,564
Sales and marketing1
41,727
41,295
166,215
173,871
General and administrative1
20,431
23,445
74,591
78,878
Litigation settlement
—
75,000
—
75,000
Total operating expenses
91,018
164,665
349,094
430,313
Loss from operations
(17,168
)
(99,689
)
(64,407
)
(187,455
)
Change in fair value of debt conversion
and warrant liabilities
(4,475
)
(134
)
(2,234
)
9,214
Interest expense
(6,876
)
(4,486
)
(21,480
)
(15,133
)
Interest and other income (expense),
net
8,440
5,888
22,079
5,986
Loss before income taxes
(20,079
)
(98,421
)
(66,042
)
(187,388
)
Income tax provision
755
9,437
2,151
10,582
Net loss
(20,834
)
(107,858
)
(68,193
)
(197,970
)
Comprehensive loss:
Foreign currency translation
adjustment
711
1,187
(672
)
(461
)
Unrealized gain (loss) on
available-for-sale securities
238
663
732
(350
)
Comprehensive loss
$
(19,885
)
$
(106,008
)
$
(68,133
)
$
(198,781
)
Net loss per share, basic and diluted
$
(0.14
)
$
(0.80
)
$
(0.49
)
$
(1.51
)
Weighted-average shares outstanding used
in calculating net loss per share, basic and diluted
144,175
134,349
140,147
131,441
_____________________
(1) Stock-based compensation
expense was recorded in the following cost and expense
categories:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Cost of subscription revenue
$
2,090
$
1,624
$
8,979
$
8,141
Cost of professional services revenue
2,570
2,111
11,567
12,297
Research and development
6,631
4,852
27,292
25,819
Sales and marketing
7,259
5,472
32,116
33,075
General and administrative
4,529
2,297
21,098
17,069
Total stock-based compensation expense
$
23,079
$
16,356
$
101,052
$
96,401
ZUORA, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
January 31, 2024
January 31, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
256,065
$
203,239
Short-term investments
258,120
183,006
Accounts receivable, net of allowance for
credit losses of $2,142 and $4,001 as of January 31, 2024 and
January 31, 2023, respectively
124,602
91,740
Deferred commissions, current portion
15,870
16,282
Prepaid expenses and other current
assets
23,261
24,285
Total current assets
677,918
518,552
Property and equipment, net
25,961
27,159
Operating lease right-of-use assets
22,462
22,768
Purchased intangibles, net
10,082
13,201
Deferred commissions, net of current
portion
27,250
28,250
Goodwill
56,657
53,991
Other assets
3,506
4,677
Total assets
$
823,836
$
668,598
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
3,161
$
1,073
Accrued expenses and other current
liabilities
32,157
103,678
Accrued employee liabilities
37,722
30,483
Deferred revenue, current portion
199,615
167,145
Operating lease liabilities, current
portion
6,760
9,240
Total current liabilities
279,415
311,619
Long-term debt
359,525
210,403
Deferred revenue, net of current
portion
2,802
442
Operating lease liabilities, net of
current portion
37,100
37,924
Deferred tax liabilities
3,725
3,717
Other long-term liabilities
7,582
7,333
Total liabilities
690,149
571,438
Stockholders’ equity:
Class A common stock
14
13
Class B common stock
1
1
Additional paid-in capital
964,141
859,482
Accumulated other comprehensive loss
(859
)
(919
)
Accumulated deficit
(829,610
)
(761,417
)
Total stockholders’ equity
133,687
97,160
Total liabilities and stockholders’
equity
$
823,836
$
668,598
ZUORA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Fiscal Year Ended January
31,
2024
2023
(unaudited)
Cash flows from operating
activities:
Net loss
$
(68,193
)
$
(197,970
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation, amortization and
accretion
18,214
18,738
Stock-based compensation
101,052
96,401
Provision for credit losses
858
2,245
Donation of common stock to charitable
foundation
—
1,000
Amortization of deferred commissions
18,959
19,291
Reduction in carrying amount of
right-of-use assets
6,090
7,363
Asset impairment
3,811
4,537
Change in fair value of debt conversion
and warrant liabilities
2,234
(9,213
)
Change in fair value of contingent
consideration
—
(380
)
Other
1,335
(391
)
Changes in operating assets and
liabilities:
Accounts receivable
(34,230
)
(11,081
)
Prepaid expenses and other assets
885
(7,379
)
Deferred commissions
(18,051
)
(22,802
)
Accounts payable
2,082
(6,084
)
Accrued expenses and other liabilities
(82,746
)
88,353
Accrued employee liabilities
7,239
(2,161
)
Deferred revenue
34,830
12,020
Operating lease liabilities
(13,136
)
(13,131
)
Net cash used in operating activities
(18,767
)
(20,644
)
Cash flows from investing
activities:
Purchases of property and equipment
(9,987
)
(10,634
)
Purchases of short-term investments
(286,394
)
(234,246
)
Maturities of short-term investments
216,628
154,806
Cash paid for acquisition, net of cash
acquired
(4,524
)
(41,000
)
Net cash used in investing activities
(84,277
)
(131,074
)
Cash flows from financing
activities:
Proceeds from issuance of convertible
senior notes, net of issuance costs
145,861
233,901
Proceeds from issuance of common stock
upon exercise of stock options
2,280
2,471
Proceeds from issuance of common stock
under employee stock purchase plan
8,401
7,019
Principal payments on debt
—
(1,480
)
Net cash provided by financing
activities
156,542
241,911
Effect of exchange rates on cash and cash
equivalents
(672
)
(461
)
Net increase in cash and cash
equivalents
52,826
89,732
Cash and cash equivalents, beginning of
year
203,239
113,507
Cash and cash equivalents, end of year
$
256,065
$
203,239
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except
percentages)
(unaudited)
Subscription Gross Margin
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
2024
2023
Reconciliation of cost of subscription
revenue:
GAAP cost of subscription revenue
$
22,295
$
21,070
$
84,599
$
81,094
Less:
Stock-based compensation
(2,090
)
(1,624
)
(8,979
)
(8,141
)
Amortization of acquired intangibles
(607
)
(724
)
(2,690
)
(2,236
)
Asset impairment
(176
)
—
(615
)
—
Workforce reduction
(1,740
)
(400
)
(1,778
)
(547
)
Non-GAAP cost of subscription revenue
$
17,682
$
18,322
$
70,537
$
70,170
GAAP subscription gross margin
78
%
76
%
78
%
76
%
Non-GAAP subscription gross margin
82
%
80
%
82
%
79
%
Professional Services Gross
Margin
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
2024
2023
Reconciliation of cost of professional
services revenue:
GAAP cost of professional services
revenue
$
14,524
$
16,995
$
62,375
$
72,135
Less:
Stock-based compensation
(2,570
)
(2,111
)
(11,567
)
(12,297
)
Asset impairment
(291
)
—
(291
)
—
Workforce reduction
(72
)
(247
)
(118
)
(646
)
Non-GAAP cost of professional services
revenue
$
11,591
$
14,637
$
50,399
$
59,192
GAAP professional services gross
margin
(38
)%
(26
)%
(29
)%
(25
)%
Non-GAAP professional services gross
margin
(10
)%
(8
)%
(4
)%
(3
)%
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands, except
percentages)
(unaudited)
Total Gross Margin
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
2024
2023
Reconciliation of gross profit:
GAAP gross profit
$
73,850
$
64,976
$
284,687
$
242,858
Add:
Stock-based compensation
4,660
3,735
20,546
20,438
Amortization of acquired intangibles
607
724
2,690
2,236
Asset impairment
467
—
906
—
Workforce reduction
1,812
647
1,896
1,193
Non-GAAP gross profit
$
81,396
$
70,082
$
310,725
$
266,725
GAAP gross margin
67
%
63
%
66
%
61
%
Non-GAAP gross margin
74
%
68
%
72
%
67
%
Operating (Loss) Income and Operating
Margin
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
2024
2023
Reconciliation of (loss) income from
operations:
GAAP loss from operations
$
(17,168
)
$
(99,689
)
$
(64,407
)
$
(187,455
)
Add:
Stock-based compensation
23,079
16,356
101,052
96,401
Amortization of acquired intangibles
607
724
2,690
2,236
Asset impairment
2,219
4,537
3,811
4,537
Charitable contribution
—
—
—
1,000
Shareholder litigation
153
76,022
(3,112
)
76,268
Acquisition-related transactions
—
1,541
211
3,153
Workforce reduction
6,984
2,709
7,249
6,369
Non-GAAP income from operations
$
15,874
$
2,200
$
47,494
$
2,509
GAAP operating margin
(16
)%
(97
)%
(15
)%
(47
)%
Non-GAAP operating margin
14
%
2
%
11
%
1
%
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands, except per
share data)
(unaudited)
Net (Loss) Income and Net (Loss) Income
Per Share
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
2024
2023
Reconciliation of net (loss) income:
GAAP net loss
$
(20,834
)
$
(107,858
)
$
(68,193
)
$
(197,970
)
Add:
Stock-based compensation
23,079
16,356
101,052
96,401
Amortization of acquired intangibles
607
724
2,690
2,236
Asset impairment
2,219
4,537
3,811
4,537
Charitable contribution
—
—
—
1,000
Shareholder litigation
153
76,022
(3,112
)
76,268
Change in fair value of debt conversion
and warrant liabilities
4,475
134
2,234
(9,214
)
Acquisition-related transactions
—
1,541
211
3,153
Workforce reduction
6,984
2,709
7,249
6,369
Non-GAAP net income (loss)
$
16,683
$
(5,835
)
$
45,942
$
(17,220
)
GAAP net loss per share, basic and
diluted1
$
(0.14
)
$
(0.80
)
$
(0.49
)
$
(1.51
)
Non-GAAP net income (loss) per share,
basic and diluted1
$
0.12
$
(0.04
)
$
0.33
$
(0.13
)
_________________________________
(1) For the three months ended
January 31, 2024 and 2023, GAAP and Non-GAAP net income (loss) per
share are calculated based upon 144.2 million and 134.3 million
basic and diluted weighted-average shares of common stock,
respectively. For the twelve months ended January 31, 2024 and
2023, GAAP and Non-GAAP net income (loss) per share are calculated
based upon 140.1 million and 131.4 million basic and diluted
weighted-average shares of common stock, respectively.
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(in thousands, except
percentages)
(unaudited)
Adjusted Free Cash Flow
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
2024
2023
Net cash provided by (used in) operating
activities (GAAP)
$
16,909
$
(17,965
)
$
(18,767
)
$
(20,644
)
Add:
Shareholder litigation
783
14
72,913
251
Acquisition-related costs
—
3,186
135
3,186
Less:
Purchases of property and equipment
(3,074
)
(2,163
)
(9,987
)
(10,634
)
Adjusted free cash flow (non-GAAP)
$
14,618
$
(16,928
)
$
44,294
$
(27,841
)
Net cash (used in) provided by investing
activities (GAAP)
$
(181,303
)
$
34,848
$
(84,277
)
$
(131,074
)
Net cash provided by financing activities
(GAAP)
$
4,916
$
2,908
$
156,542
$
241,911
Constant Currency Revenue
Three Months Ended January
31,
Fiscal Year Ended January
31,
2024
2023
% Change
2024
2023
% Change
Subscription revenue (GAAP)
$
100,164
$
89,513
12%
$
383,396
$
338,391
13%
Effects of foreign currency rate
fluctuations
(176
)
5,418
Subscription revenue on a constant
currency basis (Non-GAAP)
$
99,988
12%
$
388,814
15%
Total revenue (GAAP)
$
110,669
$
103,041
7%
$
431,661
$
396,087
9%
Effects of foreign currency rate
fluctuations
(189
)
5,403
Total revenue on a constant currency basis
(Non-GAAP)
$
110,480
7%
$
437,064
10%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228482298/en/
Investor Relations Contact:
Luana Wolk investorrelations@zuora.com 650-419-1377
Media Relations Contact:
Margaret Pack press@zuora.com 619-609-3919
Zuora (NYSE:ZUO)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Zuora (NYSE:ZUO)
Historical Stock Chart
Von Apr 2023 bis Apr 2024