08/21/2024 | Press release | Distributed by Public on 08/21/2024 14:08
Subscription revenue grew 9% year-over-year
GAAP operating margin increased 8 percentage points year-over-year
Non-GAAP operating margin increased 13 percentage points year-over-year
Operating cash flow increased to $11.4 millioncompared to $5.4 million last year
Adjusted free cash flow increased to $12.2 million compared to $4.0 million last year
REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced financial results for its fiscal second quarter ended July 31, 2024.
"I'm proud of our ZEOs for delivering a solid second quarter," said Tien Tzuo, Founder and CEO at Zuora. "From our install base to the analyst community, we continue to be recognized for our market leadership. When enterprise organizations want to win with a Total Monetization strategy, they come to us for our mission-critical technology."
"In the second quarter, we reached our goal to operate at a Rule of 30 two quarters ahead of plan," said Todd McElhatton, Chief Financial Officer at Zuora. "We remain committed to margin expansion and profitability as we navigate this challenging market."
Second Quarter Fiscal 2025 Financial Results:
Descriptions of our 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.
Key Metrics and Business Highlights:
Financial Outlook:
As of August 21, 2024, we are providing guidance for the third quarter and full fiscal year 2025 based on current market conditions and expectations. For the full fiscal year 2025, we are raising both our revenue outlook and our non-GAAP operating income ranges, as well as increasing our target for adjusted free cash flow, while absorbing the operating expense impact of our recent Togai and Sub(x) acquisitions. We emphasize that the guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below.
For the third quarter and full fiscal year 2025, Zuora currently expects the following results:
Third Quarter |
Fiscal 2025 |
||
Subscription revenue |
$104.5M - $105.5M |
$414.5M - $416.5M |
|
Professional services revenue |
$10.5M - $11.5M |
$41.0M - $45.0M |
|
Total revenue |
$115.0M - $117.0M |
$455.5M - $461.5M |
|
Non-GAAP income from operations 1 |
$20.5M - $21.5M |
$90.0M - $93.0M |
|
Non-GAAP net income per share 1,2 |
$0.11 - $0.12 |
$0.56 - $0.58 |
|
ARR growth 3 |
~6% |
||
Dollar-based Retention Rate 3 |
103% - 104% |
||
Adjusted Free Cash Flow 1 |
$82.0M+ |
(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 152.5 million and 150.9 million weighted-average shares outstanding for the third 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 August 21, 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 August 21, 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 August 21, 2024 at 5:00 p.m. PT to August 28, 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; non-GAAP net income per share; and adjusted 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:
Additionally, we disclose "adjusted free cash flow", which is a non-GAAP measure that includes adjustments to operating cash flows for cash impacts related to Shareholder matters and Acquisition-related expenses described above, and net purchases of property and equipment. We include the impact of net purchases of property and equipment in our adjusted free cash flow calculation because we consider these capital expenditures to be a necessary component of our ongoing operations. 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.
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 that refer to future plans and expectations are forward-looking statements that involve a number of risks and uncertainties. Words such as "believes," "may," "will," "determine," "estimates," "potential," "continues," "anticipates," "intends," "expects," "could," "would," "projects," "plans," "targets," "strategy," "likely," 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 third quarter and full year fiscal 2025. 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 May 31, 2024 as well as other documents that may be filed by us from time to time with the Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2024. 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 retain and expand sales to existing customers; our ability to manage our future revenue and profitability plans effectively; adoption of monetization platform software and related solutions, as well as consumer adoption of products and services that are provided through such solutions; our ability to develop and release new products and services, or successful enhancements, new features and modifications; challenges related to growing our relationships with strategic partners; loss of key employees; our ability to compete in our markets; adverse impacts on our business and financial condition due to macroeconomic or market conditions; the impact of actions to improve operational efficiencies and operating costs; our history of net losses and ability to achieve or sustain profitability; market acceptance of our products; the success of our product development efforts; risks associated with currency exchange rate fluctuations; risks associated with our debt obligations; successful deployment of our solutions by customers after entering into a subscription agreement with us; the success of our sales and product initiatives; our security measures; our ability to adequately protect our intellectual property; interruptions or performance problems; litigation and other shareholder related costs; the anticipated benefits of acquisitions and ability to integrate operations and technology of any acquired company; geopolitical conflicts or destabilizing events; 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 to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora's flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric and Zoom use Zuora's leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit 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, INC.
ZUORA, INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Revenue: |
|||||||||||||||
Subscription |
$ |
104,051 |
$ |
95,473 |
$ |
203,010 |
$ |
185,184 |
|||||||
Professional services |
11,345 |
12,575 |
22,155 |
25,959 |
|||||||||||
Total revenue |
115,396 |
108,048 |
225,165 |
211,143 |
|||||||||||
Cost of revenue: |
|||||||||||||||
Subscription 1 |
22,564 |
21,338 |
43,253 |
41,926 |
|||||||||||
Professional services 1 |
14,728 |
16,443 |
29,100 |
33,201 |
|||||||||||
Total cost of revenue |
37,292 |
37,781 |
72,353 |
75,127 |
|||||||||||
Gross profit |
78,104 |
70,267 |
152,812 |
136,016 |
|||||||||||
Operating expenses: |
|||||||||||||||
Research and development 1 |
26,454 |
26,256 |
50,020 |
51,924 |
|||||||||||
Sales and marketing 1 |
36,137 |
42,799 |
71,982 |
84,243 |
|||||||||||
General and administrative 1 |
25,202 |
19,451 |
44,471 |
38,267 |
|||||||||||
Total operating expenses |
87,793 |
88,506 |
166,473 |
174,434 |
|||||||||||
Loss from operations |
(9,689 |
) |
(18,239 |
) |
(13,661 |
) |
(38,418 |
) |
|||||||
Change in fair value of debt conversion and warrant liabilities |
(1,013 |
) |
(4,786 |
) |
(8,941 |
) |
(4,756 |
) |
|||||||
Interest expense |
(6,965 |
) |
(4,607 |
) |
(13,736 |
) |
(8,994 |
) |
|||||||
Interest and other income (expense), net |
8,168 |
5,657 |
13,483 |
11,367 |
|||||||||||
Loss before income taxes |
(9,499 |
) |
(21,975 |
) |
(22,855 |
) |
(40,801 |
) |
|||||||
Income tax (benefit) provision |
(2,278 |
) |
587 |
(1,926 |
) |
1,056 |
|||||||||
Net loss |
(7,221 |
) |
(22,562 |
) |
(20,929 |
) |
(41,857 |
) |
|||||||
Comprehensive loss: |
|||||||||||||||
Foreign currency translation adjustment |
171 |
(404 |
) |
(76 |
) |
(687 |
) |
||||||||
Unrealized gain (loss) on available-for-sale securities |
302 |
172 |
(185 |
) |
512 |
||||||||||
Comprehensive loss |
$ |
(6,748 |
) |
$ |
(22,794 |
) |
$ |
(21,190 |
) |
$ |
(42,032 |
) |
|||
Net loss per share, basic and diluted |
$ |
(0.05 |
) |
$ |
(0.16 |
) |
$ |
(0.14 |
) |
$ |
(0.30 |
) |
|||
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted |
149,377 |
138,605 |
148,038 |
137,417 |
_____________________ (1) Stock-based compensation expense was recorded in the following cost and expense categories: |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Cost of subscription revenue |
$ |
2,377 |
$ |
2,180 |
$ |
3,960 |
$ |
4,539 |
|||||||
Cost of professional services revenue |
2,723 |
3,229 |
4,761 |
6,250 |
|||||||||||
Research and development |
8,080 |
6,752 |
13,983 |
13,496 |
|||||||||||
Sales and marketing |
7,521 |
8,689 |
12,996 |
16,666 |
|||||||||||
General and administrative |
5,007 |
5,798 |
8,469 |
10,921 |
|||||||||||
Total stock-based compensation expense |
$ |
25,708 |
$ |
26,648 |
$ |
44,169 |
$ |
51,872 |
ZUORA, INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
July 31, 2024 |
January 31, 2024 |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
237,041 |
$ |
256,065 |
|||
Short-term investments |
306,430 |
258,120 |
|||||
Accounts receivable, net |
93,315 |
124,602 |
|||||
Deferred commissions, current portion |
15,953 |
15,870 |
|||||
Prepaid expenses and other current assets |
25,862 |
23,261 |
|||||
Total current assets |
678,601 |
677,918 |
|||||
Property and equipment, net |
26,882 |
25,961 |
|||||
Operating lease right-of-use assets |
21,783 |
22,462 |
|||||
Purchased intangibles, net |
21,590 |
10,082 |
|||||
Deferred commissions, net of current portion |
25,421 |
27,250 |
|||||
Goodwill |
69,739 |
56,657 |
|||||
Other assets |
5,172 |
3,506 |
|||||
Total assets |
$ |
849,188 |
$ |
823,836 |
|||
Liabilities and stockholders' equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
773 |
$ |
3,161 |
|||
Accrued expenses and other current liabilities |
21,621 |
32,157 |
|||||
Accrued employee liabilities |
30,427 |
37,722 |
|||||
Deferred revenue, current portion |
185,183 |
199,615 |
|||||
Operating lease liabilities, current portion |
6,710 |
6,760 |
|||||
Total current liabilities |
244,714 |
279,415 |
|||||
Long-term debt |
365,300 |
359,525 |
|||||
Deferred revenue, net of current portion |
1,454 |
2,802 |
|||||
Operating lease liabilities, net of current portion |
34,508 |
37,100 |
|||||
Deferred tax liabilities |
3,726 |
3,725 |
|||||
Other long-term liabilities |
7,439 |
7,582 |
|||||
Total liabilities |
657,141 |
690,149 |
|||||
Stockholders' equity: |
|||||||
Class A common stock |
14 |
14 |
|||||
Class B common stock |
1 |
1 |
|||||
Additional paid-in capital |
1,043,691 |
964,141 |
|||||
Accumulated other comprehensive loss |
(1,120 |
) |
(859 |
) |
|||
Accumulated deficit |
(850,539 |
) |
(829,610 |
) |
|||
Total stockholders' equity |
192,047 |
133,687 |
|||||
Total liabilities and stockholders' equity |
$ |
849,188 |
$ |
823,836 |
ZUORA, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
Six Months Ended |
|||||||
2024 |
2023 |
||||||
Cash flows from operating activities: |
|||||||
Net loss |
$ |
(20,929 |
) |
$ |
(41,857 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
Depreciation, amortization and accretion |
9,177 |
8,892 |
|||||
Stock-based compensation |
44,169 |
51,872 |
|||||
Provision for credit losses |
1,670 |
279 |
|||||
Amortization of deferred commissions |
9,209 |
9,746 |
|||||
Reduction in carrying amount of right-of-use assets |
2,278 |
3,116 |
|||||
Change in fair value of debt conversion and warrant liabilities |
8,941 |
4,756 |
|||||
Other |
(2,414 |
) |
186 |
||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
29,621 |
9,726 |
|||||
Prepaid expenses and other assets |
(3,818 |
) |
(4,317 |
) |
|||
Deferred commissions |
(7,599 |
) |
(7,647 |
) |
|||
Accounts payable |
(2,407 |
) |
(63 |
) |
|||
Accrued expenses and other liabilities |
4,808 |
(5,102 |
) |
||||
Accrued employee liabilities |
(7,295 |
) |
(128 |
) |
|||
Deferred revenue |
(15,780 |
) |
(1,848 |
) |
|||
Operating lease liabilities |
(5,329 |
) |
(7,630 |
) |
|||
Net cash provided by operating activities |
44,302 |
19,981 |
|||||
Cash flows from investing activities: |
|||||||
Purchases of property and equipment |
(5,922 |
) |
(3,838 |
) |
|||
Purchases of short-term investments |
(181,467 |
) |
(61,745 |
) |
|||
Maturities of short-term investments |
136,301 |
165,128 |
|||||
Cash paid for acquisition, net of cash acquired |
(19,763 |
) |
(4,524 |
) |
|||
Net cash (used in) provided by investing activities |
(70,851 |
) |
95,021 |
||||
Cash flows from financing activities: |
|||||||
Proceeds from issuance of common stock upon exercise of stock options |
3,120 |
962 |
|||||
Proceeds from issuance of common stock under employee stock purchase plan |
4,481 |
4,765 |
|||||
Net cash provided by financing activities |
7,601 |
5,727 |
|||||
Effect of exchange rates on cash and cash equivalents |
(76 |
) |
(687 |
) |
|||
Net (decrease) increase in cash and cash equivalents |
(19,024 |
) |
120,042 |
||||
Cash and cash equivalents, beginning of period |
256,065 |
203,239 |
|||||
Cash and cash equivalents, end of period |
$ |
237,041 |
$ |
323,281 |
ZUORA, INC. |
|||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES |
|||||||||||||||
(in thousands, except percentages) |
|||||||||||||||
(unaudited) |
|||||||||||||||
Subscription Gross Margin |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Reconciliation of cost of subscription revenue: |
|||||||||||||||
GAAP cost of subscription revenue |
$ |
22,564 |
$ |
21,338 |
$ |
43,253 |
$ |
41,926 |
|||||||
Less: |
|||||||||||||||
Stock-based compensation |
(2,377 |
) |
(2,180 |
) |
(3,960 |
) |
(4,539 |
) |
|||||||
Amortization of acquired intangibles |
(934 |
) |
(738 |
) |
(1,542 |
) |
(1,476 |
) |
|||||||
Workforce reductions |
(402 |
) |
- |
(568 |
) |
(38 |
) |
||||||||
Acquisition-related expenses |
(91 |
) |
- |
(91 |
) |
- |
|||||||||
Shareholder matters |
(20 |
) |
- |
(20 |
) |
- |
|||||||||
Non-GAAP cost of subscription revenue |
$ |
18,740 |
$ |
18,420 |
$ |
37,072 |
$ |
35,873 |
|||||||
GAAP subscription gross margin |
78 |
% |
78 |
% |
79 |
% |
77 |
% |
|||||||
Non-GAAP subscription gross margin |
82 |
% |
81 |
% |
82 |
% |
81 |
% |
|||||||
Professional Services Gross Margin |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Reconciliation of cost of professional services revenue: |
|||||||||||||||
GAAP cost of professional services revenue |
$ |
14,728 |
$ |
16,443 |
$ |
29,100 |
$ |
33,201 |
|||||||
Less: |
|||||||||||||||
Stock-based compensation |
(2,723 |
) |
(3,229 |
) |
(4,761 |
) |
(6,250 |
) |
|||||||
Shareholder matters |
(28 |
) |
- |
(28 |
) |
- |
|||||||||
Workforce reductions |
(11 |
) |
(46 |
) |
(5 |
) |
(46 |
) |
|||||||
Non-GAAP cost of professional services revenue |
$ |
11,966 |
$ |
13,168 |
$ |
24,306 |
$ |
26,905 |
|||||||
GAAP professional services gross margin |
(30 |
)% |
(31 |
)% |
(31 |
)% |
(28 |
)% |
|||||||
Non-GAAP professional services gross margin |
(5 |
)% |
(5 |
)% |
(10 |
)% |
(4 |
)% |
ZUORA, INC. |
|||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED) |
|||||||||||||||
(in thousands, except percentages) |
|||||||||||||||
(unaudited) |
|||||||||||||||
Total Gross Margin |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Reconciliation of gross profit: |
|||||||||||||||
GAAP gross profit |
$ |
78,104 |
$ |
70,267 |
$ |
152,812 |
$ |
136,016 |
|||||||
Add: |
|||||||||||||||
Stock-based compensation |
5,100 |
5,409 |
8,721 |
10,789 |
|||||||||||
Amortization of acquired intangibles |
934 |
738 |
1,542 |
1,476 |
|||||||||||
Workforce reductions |
413 |
46 |
573 |
84 |
|||||||||||
Acquisition-related expenses |
91 |
- |
91 |
- |
|||||||||||
Shareholder matters |
48 |
- |
48 |
- |
|||||||||||
Non-GAAP gross profit |
$ |
84,690 |
$ |
76,460 |
$ |
163,787 |
$ |
148,365 |
|||||||
GAAP gross margin |
68 |
% |
65 |
% |
68 |
% |
64 |
% |
|||||||
Non-GAAP gross margin |
73 |
% |
71 |
% |
73 |
% |
70 |
% |
|||||||
Operating (Loss) Income and Operating Margin |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Reconciliation of (loss) income from operations: |
|||||||||||||||
GAAP loss from operations |
$ |
(9,689 |
) |
$ |
(18,239 |
) |
$ |
(13,661 |
) |
$ |
(38,418 |
) |
|||
Add: |
|||||||||||||||
Stock-based compensation |
25,708 |
26,648 |
44,169 |
51,872 |
|||||||||||
Acquisition-related expenses |
6,801 |
158 |
6,801 |
192 |
|||||||||||
Shareholder matters |
1,294 |
208 |
4,059 |
243 |
|||||||||||
Amortization of acquired intangibles |
934 |
738 |
1,542 |
1,476 |
|||||||||||
Workforce reductions |
577 |
46 |
1,277 |
265 |
|||||||||||
Non-GAAP income from operations |
$ |
25,625 |
$ |
9,559 |
$ |
44,187 |
$ |
15,630 |
|||||||
GAAP operating margin |
(8 |
)% |
(17 |
)% |
(6 |
)% |
(18 |
)% |
|||||||
Non-GAAP operating margin |
22 |
% |
9 |
% |
20 |
% |
7 |
% |
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 |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Reconciliation of net (loss) income: |
|||||||||||||||
GAAP net loss |
$ |
(7,221 |
) |
$ |
(22,562 |
) |
$ |
(20,929 |
) |
$ |
(41,857 |
) |
|||
Add: |
|||||||||||||||
Stock-based compensation |
25,708 |
26,648 |
44,169 |
51,872 |
|||||||||||
Acquisition-related expenses |
6,801 |
158 |
6,801 |
192 |
|||||||||||
Shareholder matters |
1,294 |
208 |
4,059 |
243 |
|||||||||||
Change in fair value of debt conversion and warrant liabilities |
1,013 |
4,786 |
8,941 |
4,756 |
|||||||||||
Amortization of acquired intangibles |
934 |
738 |
1,542 |
1,476 |
|||||||||||
Workforce reductions |
577 |
46 |
1,277 |
265 |
|||||||||||
Non-GAAP net income |
$ |
29,106 |
$ |
10,022 |
$ |
45,860 |
$ |
16,947 |
|||||||
GAAP net loss per share, basic and diluted 1 |
$ |
(0.05 |
) |
$ |
(0.16 |
) |
$ |
(0.14 |
) |
$ |
(0.30 |
) |
|||
Non-GAAP net income per share, basic and diluted 1 |
$ |
0.19 |
$ |
0.07 |
$ |
0.31 |
$ |
0.12 |
_________________________________ (1) For the three months ended July 31, 2024 and 2023, GAAP and Non-GAAP net (loss) income per share are calculated based upon 149.4 million and 138.6 million basic and diluted weighted-average shares of common stock, respectively. For the six months ended July 31, 2024 and 2023, GAAP and Non-GAAP net (loss) income per share are calculated based upon 148.0 million and 137.4 million basic and diluted weighted-average shares of common stock, respectively. |
Adjusted Free Cash Flow |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Net cash provided by operating activities (GAAP) |
$ |
11,432 |
$ |
5,388 |
$ |
44,302 |
$ |
19,981 |
|||||||
Add: |
|||||||||||||||
Shareholder matters |
2,367 |
726 |
3,555 |
753 |
|||||||||||
Acquisition-related expenses |
1,713 |
91 |
1,713 |
107 |
|||||||||||
Less: |
|||||||||||||||
Purchases of property and equipment |
(3,267 |
) |
(2,181 |
) |
(5,922 |
) |
(3,838 |
) |
|||||||
Adjusted free cash flow (non-GAAP) |
$ |
12,245 |
$ |
4,024 |
$ |
43,648 |
$ |
17,003 |
|||||||
Net cash (used in) provided by investing activities (GAAP) |
$ |
(46,283 |
) |
$ |
74,719 |
$ |
(70,851 |
) |
$ |
95,021 |
|||||
Net cash provided by financing activities (GAAP) |
$ |
6,009 |
$ |
5,190 |
$ |
7,601 |
$ |
5,727 |
Investor Relations Contact:
Luana Wolk
[email protected]
650-419-1377
Media Relations Contact:
Margaret Juhnke
[email protected]
619-609-3919