- Fourth quarter subscription revenue grew 21%
year-over-year
- Full year subscription revenue grew 25% year-over-year
- Customers with annual contract value (ACV) equal to or greater
than $100,000 increased to 624 customers, or 19%
year-over-year
Zuora, Inc. (NYSE: ZUO), the leading cloud-based subscription
management platform provider, today announced financial results for
its fiscal fourth quarter and full year ended January 31, 2020.
“We saw solid execution in the fourth quarter and made
meaningful progress on our key initiatives focused on capturing
more of the upmarket opportunity,” said Tien Tzuo, Founder and CEO
of Zuora. “The world's largest and fastest growing companies are
embracing the Subscription Economy and selecting Zuora’s industry
leading products to drive their future growth.”
Fourth Quarter Fiscal 2020 Financial Results:
- Revenue: Total revenue was $70.4 million, an increase of
11% year-over-year. Subscription revenue was $54.6 million, an
increase of 21% year-over-year.
- Loss from Operations: GAAP loss from operations was
$24.4 million, compared to a GAAP loss from operations of $19.0
million in the fourth quarter of fiscal 2019. Non-GAAP loss from
operations was $10.5 million, compared to a non-GAAP loss from
operations of $9.9 million in the fourth quarter of fiscal
2019.
- Net Loss: GAAP net loss was $23.8 million, or 34% of
revenue, compared to a GAAP net loss of $19.2 million, or 30% of
revenue in the fourth quarter of fiscal 2019. GAAP net loss per
share a was $0.21 based on 113.2 million weighted average shares
outstanding, compared to a GAAP net loss per share of $0.18 based
on 107.4 million weighted average shares outstanding in the fourth
quarter of fiscal 2019. Non-GAAP net loss was $9.8 million,
compared to a non-GAAP net loss of $10.0 million in the fourth
quarter of fiscal 2019. Non-GAAP net loss per share was $0.09 based
on 113.2 million weighted average shares outstanding, compared to a
non-GAAP net loss per share of $0.09 based on 107.4 million
weighted average shares outstanding in the fourth quarter of fiscal
2019.
- Cash Flow: Net cash provided by operating activities was
$4.0 million, compared to net cash used in operating activities of
$7.0 million in the fourth quarter of fiscal 2019. Free cash flow
was negative $4.5 million compared to negative $9.8 million in the
fourth quarter of fiscal 2019.
- Cash and Cash Equivalents and Short-term Investments:
Cash and cash equivalents and short-term investments were $171.9
million as of January 31, 2020.
Full Year Fiscal 2020 Financial Results:
- Revenue: Total revenue was $276.1 million, an increase
of 17% year-over-year. Subscription revenue was $206.6 million, an
increase of 25% year-over-year.
- Loss from Operations: GAAP loss from operations was
$85.7 million, compared to a GAAP loss from operations of $70.4
million in fiscal year 2019. Non-GAAP loss from operations was
$40.3 million, compared to a non-GAAP loss from operations of $42.8
million in fiscal year 2019.
- Net Loss: GAAP net loss was $83.4 million, compared to a
GAAP net loss of $72.7 million in fiscal year 2019. GAAP net loss
per share was $0.75 based on 111.1 million weighted average shares
outstanding, compared to a net loss per share of $0.80 based on
91.3 million weighted average shares outstanding in fiscal year
2019. Non-GAAP net loss was $38.0 million, compared to a non-GAAP
net loss of $45.1 million in fiscal year 2019. Non-GAAP net loss
per share was $0.34 based on 111.1 million weighted average shares
outstanding, compared to a non-GAAP net loss per share of $0.49
based on 91.3 million weighted average shares outstanding in fiscal
year 2019.
- Cash Flow: Net cash used in operating activities was
$3.6 million, compared to net cash used in operating activities of
$23.6 million in fiscal year 2019. Free cash flow was negative
$25.0 million compared to negative $37.0 million in fiscal year
2019.
The section titled "Explanation of Non-GAAP Financial Measures"
below contains a description of the non-GAAP financial measures and
a reconciliation of GAAP and non-GAAP financial measures is
contained in the tables below.
Fourth Quarter Key Metrics and Business Highlights:
- Customers with ACV equal to or greater than $100,000 was 624,
which represents 19% year-over-year growth.
- Dollar-based retention rate was 104%.
- Customer usage of Zuora solutions grew, with $13.1 billion in
transaction volume through Zuora’s billing platform during our
fourth quarter, an increase of 21% year-over-year.
- Zuora was recognized for the second time in a row as a leader
by the IDC MarketScape: Worldwide Subscription Management 2019-2020
Vendor Assessment. It recommends considering Zuora when “you need a
comprehensive subscription management offering for companies of all
sizes and industries.”
- Notable recent go-lives included: Derco, Cinépolis, Softbank
Robotics, Siemens and Topcon Agriculture.
- Highlighted customers from multiple industries and geographies
in press announcements including Poly, Vertalo, Radiuz, Monet
Technologies, Briggs & Stratton.
- Opened a new company headquarters in Redwood City,
California.
CFO Transition:
Zuora also announced today that Tyler Sloat, the company’s Chief
Financial Officer, will resign from his role effective April 5,
2020 in order to accept an executive position at another company.
Zuora has established an Office of the CFO consisting of senior
finance leaders, and Ken Goldman, a member of the Board since 2017,
will play an advisory role. Zuora has retained a leading
recruitment firm to help identify the next CFO to execute on the
company’s long-term plan to accelerate growth, improve
profitability, and increase shareholder value.
Mr. Sloat will remain in his current position through the filing
of the company’s annual report on Form 10-K and will participate in
today's earnings call. “Over the past ten years, I have had the
privilege of working with an amazing team at Zuora. From a small
software startup to a publicly traded SaaS company that is driving
growth for subscription businesses, I’m proud of our many
accomplishments,” said Mr. Sloat. “Zuora has a fantastic team in
place to extend its leadership position in capturing the huge
market created by the Subscription Economy.”
“Tyler has been an integral part of our team and a big reason
for Zuora’s success in the past decade. I am immensely grateful to
Tyler for his countless contributions as he has helped build the
Subscription Economy and grow Zuora to where it is today,” said Mr.
Tzuo. “He was an incredible CFO and we wish him well in his future
endeavors. We have a strong bench of talent in our finance and
accounting organization and look forward to identifying a new CFO
in the coming months.”
Financial Outlook:
Zuora currently expects the following results for the first
quarter and full fiscal year 2021:
First Quarter
Fiscal 2021
Subscription revenue
$55.5M - $56.5M
$239.0M - $243.0M
Total revenue
$70.5M - $73.0M
$300.0M - $307.0M
Non-GAAP loss from operations
$(12.0M) - $(10.5M)
$(33.0M) - $(28.0M)
Non-GAAP net loss per share1
$(0.11) - $(0.10)
$(0.29) - $(0.25)
(1)
Non-GAAP net loss per share was
computed assuming 114.6 million weighted average shares outstanding
for the first quarter of fiscal 2021 and 116.7 million for the full
year fiscal 2021.
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 March 12,
2020 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 for one year. The call can also be accessed live via
phone by dialing (866) 393-4306 or, for international callers,
(734) 385-2616 with conference ID 4648795. An audio replay will be
available shortly after the call and can be accessed by dialing
(855) 859-2056 or, for international callers, (404) 537-3406. The
passcode for the replay is 4648795. The replay will be available
through March 19, 2020.
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 total gross margin,
non-GAAP sales and marketing expense, non-GAAP research and
development expense, non-GAAP general and administrative expense,
non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss
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 these non-GAAP 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 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, from certain of
our non-GAAP financial measures 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, from certain of our non-GAAP financial measures. We
exclude these amortization expenses because we do not believe these
expenses have a direct correlation to the operation of our
business.
Internal-use software. We exclude non-cash adjustments for
capitalization and the subsequent amortization of internal-use
software, including any impairment charges, from certain of our
non-GAAP financial measures. We capitalize certain costs incurred
for the development of computer software for internal use and then
amortize those costs over the estimated useful life. Capitalization
and amortization of software development costs can vary
significantly depending on the timing of products reaching
technological feasibility and being made generally available.
Moreover, because of the variety of approaches taken and the
subjective assumptions made by other companies in this area, we
believe that excluding the effects of capitalized software costs
allows investors to make more meaningful comparisons between our
operating results and those of other companies.
Charitable donations. We exclude expenses associated with the
charitable donation of our common stock from certain of our
non-GAAP financial measures. We believe that excluding this
non-recurring and non-cash expense allows investors to make more
meaningful comparisons between our operating results and those of
other companies.
New headquarters costs. We exclude non-recurring costs
associated with our new corporate headquarters. In January 2020,
the company incurred costs associated with water damage, net of
insurance recovery, at its new headquarters in Redwood City,
California, as well as costs to relocate its operations from
offices previously located in San Mateo and San Jose, California.
We believe that excluding these non-recurring costs allows
investors to make more meaningful comparisons between our operating
results and those of other companies due to the infrequent nature
of these costs.
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 as these expenditures are
considered to be a necessary component of 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.
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 first fiscal quarter and full fiscal 2021 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
December 16, 2019 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: we have a history of net losses
and may not achieve or sustain profitability; the shift by
companies to subscription business models may develop slower than
we expect; we may not able to sustain or manage any future growth
effectively; 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 products
may fail to gain, or lose, market acceptance; we may be unable to
attract new customers and expand sales to existing customers;
customers may fail to deploy our solution after entering into a
subscription agreement with us; customers may incorrectly or
improperly deploy or use of our solution; we may not be able to
develop and release new products and services; we may experience
interruptions or performance problems, including a service outage,
associated with our technology; we face intense competition in our
markets and may not be able to compete effectively; weakened global
economic conditions may adversely affect our industry; the risk of
loss of key employees; challenges related to growing our
relationships with strategic partners such as global systems
integrators and their effectiveness in selling our products;
changes in foreign exchange rates; 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, such as the impact of the coronavirus (COVID-19)
pandemic on our operations, customers and business partners, the
global economy, and the financial markets, and other risks and
uncertainties. Past performance is not necessarily indicative of
future results. 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 the leading cloud-based subscription management
platform that functions as a system of record for subscription
businesses across all industries. Powering the Subscription
Economy®, the Zuora® platform was architected specifically for
dynamic, recurring subscription business models and acts as an
intelligent subscription management hub that automates and
orchestrates the entire subscription order-to-cash process,
including billing and revenue recognition. Zuora serves more than
1,000 companies around the world, including Box, Rogers, Schneider
Electric, Xplornet and Zendesk. 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.
© 2020 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. Other names and brands may be claimed as the
property of others.
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,
2020
2019 As Adjusted1
2020
2019 As Adjusted1
(unaudited)
(unaudited)
Revenue:
Subscription
$
54,559
$
44,956
$
206,555
$
164,805
Professional services
15,834
18,382
69,502
70,184
Total revenue
70,393
63,338
276,057
234,989
Cost of revenue:
Subscription
14,447
11,720
53,036
42,993
Professional services
19,700
20,028
81,145
73,597
Total cost of revenue
34,147
31,748
134,181
116,590
Gross profit
36,246
31,590
141,876
118,399
Operating expenses:
Research and development
20,736
14,750
74,398
54,417
Sales and marketing
27,446
24,161
108,264
95,169
General and administrative
12,513
11,677
44,879
39,230
Total operating expenses
60,695
50,588
227,541
188,816
Loss from operations
(24,449
)
(18,998
)
(85,665
)
(70,417
)
Interest and other income (expense),
net
418
801
2,712
(417
)
Loss before income taxes
(24,031
)
(18,197
)
(82,953
)
(70,834
)
Income tax benefit (provision)
279
(986
)
(441
)
(1,907
)
Net loss
(23,752
)
(19,183
)
(83,394
)
(72,741
)
Comprehensive loss:
Foreign currency translation
adjustment
37
344
(379
)
3
Unrealized gain (loss) on
available-for-sale securities, net of tax
(35
)
39
86
7
Comprehensive loss
$
(23,750
)
$
(18,800
)
$
(83,687
)
$
(72,731
)
Net loss per share, basic and diluted
$
(0.21
)
$
(0.18
)
$
(0.75
)
$
(0.80
)
Weighted-average shares outstanding used
in calculating net loss per share, basic and diluted
113,160
107,433
111,122
91,267
(1) The condensed consolidated statements
of comprehensive loss for the prior periods presented above have
been adjusted to reflect the adoption of ASC 606.
ZUORA, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
January 31,
2020
January 31,
2019
As Adjusted1
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
54,275
$
67,940
Short-term investments
117,662
107,908
Accounts receivable, net of allowance for
doubtful accounts of $2,943 and $2,522 as of January 31, 2020 and
January 31, 2019, respectively
68,875
58,258
Restricted cash, current portion
—
400
Deferred commissions, current portion
9,585
8,616
Prepaid expenses and other current
assets
16,387
14,632
Total current assets
266,784
257,754
Property and equipment, net
33,489
19,625
Restricted cash, net of current
portion
—
1,684
Operating lease right-of-use assets2
54,286
—
Purchased intangibles, net
5,620
7,396
Deferred commissions, net of current
portion
19,591
18,664
Goodwill
17,632
17,632
Other assets
4,825
3,292
Total assets
$
402,227
$
326,047
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
2,098
$
1,512
Accrued expenses and other current
liabilities
17,731
14,210
Accrued employee liabilities
24,193
22,603
Debt, current portion
4,432
2,963
Deferred revenue, current portion
111,411
86,784
Operating lease liabilities, current
portion2
5,755
—
Total current liabilities
165,620
128,072
Debt, net of current portion
6,094
10,494
Deferred revenue, net of current
portion
1,007
112
Operating lease liabilities, net of
current portion2
62,307
—
Deferred tax liabilities
1,569
1,877
Other long-term liabilities
971
3,678
Total liabilities
237,568
144,233
Stockholders’ equity:
Class A common stock
10
8
Class B common stock
2
3
Additional paid-in capital
555,307
488,776
Accumulated other comprehensive income
188
481
Accumulated deficit
(390,848
)
(307,454
)
Total stockholders’ equity
164,659
181,814
Total liabilities and stockholders’
equity
$
402,227
$
326,047
(1)
The condensed consolidated balance sheet
for the prior period presented above has been adjusted to reflect
the adoption of ASC 606.
(2)
Effective February 1, 2019, the Company
adopted ASC 842 using the modified retrospective approach. Under
the modified retrospective approach, the comparative information
has not been restated and continues to be reported under the
accounting standards in effect for that period.
ZUORA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Fiscal Year Ended January
31,
2020
2019
As Adjusted1
(unaudited)
Cash flows from operating
activities:
Net loss
$
(83,394
)
$
(72,741
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation, amortization and
accretion2
11,866
8,228
Stock-based compensation
45,046
25,357
Provision for doubtful accounts
3,887
3,949
Donation of common stock to charitable
foundation
—
1,000
Amortization of deferred commissions
9,515
7,959
Amortization of operating lease
right-of-use assets2
8,584
—
Other
1,643
147
Changes in operating assets and
liabilities:
Accounts receivable
(14,504
)
(12,443
)
Prepaid expenses and other assets
(4,180
)
(5,825
)
Deferred commissions
(11,411
)
(13,556
)
Accounts payable
417
(1,103
)
Accrued expenses and other liabilities
627
5,856
Accrued employee liabilities
1,590
4,902
Deferred revenue
25,522
24,689
Operating lease liabilities2
1,202
—
Net cash used in operating activities
(3,590
)
(23,581
)
Cash flows from investing
activities:
Purchases of property and equipment
(21,424
)
(13,412
)
Purchases of short-term investments
(184,633
)
(107,464
)
Sales of short-term investments
3,497
—
Maturities of short-term investments
172,800
—
Business combination, net of cash
acquired
—
(247
)
Net cash used in investing activities
(29,760
)
(121,123
)
Cash flows from financing
activities:
Payments under capital leases
—
(3,623
)
Proceeds from issuance of common stock
upon exercise of stock options
12,079
11,481
Repurchases of unvested common stock
(119
)
(18
)
Payments of offering costs
—
(4,399
)
Proceeds of issuance of common stock under
employee stock purchase plan
8,980
5,329
Proceeds from initial public offering, net
of underwriters’ discounts and commissions
—
164,703
Payments under related party notes
receivable
—
(4,344
)
Repayments of related party notes
receivable
—
5,625
Principal payments on long-term debt
(2,960
)
(834
)
Payments related to business
combination
—
(12,558
)
Net cash provided by financing
activities
17,980
161,362
Effect of exchange rates on cash and cash
equivalents and restricted cash
(379
)
3
Net (decrease) increase in cash and cash
equivalents and restricted cash
(15,749
)
16,661
Cash and cash equivalents and restricted
cash, beginning of period
70,024
53,363
Cash and cash equivalents and restricted
cash, end of period
$
54,275
$
70,024
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
595
$
963
Cash paid for tax
$
836
$
755
Supplemental disclosure of non-cash
investing and financing activities:
Lapse in restrictions on early exercised
common stock options
$
412
$
2,088
Property and equipment purchases accrued
or in accounts payable
$
3,611
$
307
Deferred offering costs payable or accrued
but not paid
$
—
$
210
Reconciliation of cash and cash
equivalents and restricted cash within the consolidated balance
sheets to the amounts shown in the consolidated statements of cash
flows above:
Cash and cash equivalents
$
54,275
$
67,940
Restricted cash, current
—
400
Restricted cash, net of current
portion
—
1,684
Total cash and cash equivalents and
restricted cash
$
54,275
$
70,024
(1)
The condensed consolidated statement of
cash flows for the prior period presented above has been adjusted
to reflect the adoption of ASC 606.
(2)
Effective February 1, 2019, the Company
adopted ASC 842 using the modified retrospective approach. Under
the modified retrospective approach, the comparative information
has not been restated and continues to be reported under the
accounting standards in effect for that period.
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except
percentages and per share data)
(unaudited)
Three Months Ended January 31,
2020
GAAP
Stock-based
Compensation
Amortization
of Acquired
Intangibles
Internal-use
Software
New
Headquarters
Costs
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
14,447
$
(785
)
$
(423
)
$
(781
)
$
(75
)
$
12,383
Cost of professional services revenue
19,700
(2,108
)
—
—
(94
)
17,498
Gross profit
36,246
2,893
423
781
169
40,512
Operating expenses:
Research and development
20,736
(5,878
)
—
1,351
(150
)
16,059
Sales and marketing
27,446
(3,058
)
—
—
(43
)
24,345
General and administrative
12,513
(1,804
)
—
—
(120
)
10,589
Operating loss
(24,449
)
13,633
423
(570
)
482
(10,481
)
Net loss
$
(23,752
)
$
13,633
$
423
$
(570
)
$
482
$
(9,784
)
Net loss per share, basic and diluted1
$
(0.21
)
$
(0.09
)
Gross margin
51
%
58
%
Subscription gross margin
74
%
77
%
Three Months Ended January 31,
2019
GAAP2
Stock-based
Compensation
Amortization
of Acquired
Intangibles
Internal-use
Software
Charitable
Contribution
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
11,720
$
(656
)
$
(503
)
$
(355
)
$
—
$
10,206
Cost of professional services revenue
20,028
(1,785
)
—
26
—
18,269
Gross profit
31,590
2,441
503
329
—
34,863
Operating expenses:
Research and development
14,750
(1,979
)
—
322
13,093
Sales and marketing
24,161
(2,067
)
—
—
22,094
General and administrative
11,677
(1,150
)
—
—
(1,000
)
9,527
Operating loss
(18,998
)
7,637
503
7
1,000
(9,851
)
Net loss
$
(19,183
)
$
7,637
$
503
$
7
$
1,000
$
(10,036
)
Net loss per share, basic and diluted1
$
(0.18
)
$
(0.09
)
Gross margin
50
%
55
%
Subscription gross margin
74
%
77
%
(1)
GAAP and Non-GAAP net loss per share are
calculated based upon 113,160 and 107,433 basic and diluted
weighted-average shares of common stock for the three months ended
January 31, 2020 and 2019, respectively.
(2)
Financial information for the prior period
presented above has been adjusted to reflect the adoption of ASC
606.
ZUORA, INC.
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except
percentages and per share data)
(unaudited)
Fiscal Year Ended January 31,
2020
GAAP
Stock-based
Compensation
Amortization
of Acquired
Intangibles
Internal-use
Software
New
Headquarters
Costs
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
53,036
$
(2,772
)
$
(1,776
)
$
(2,560
)
$
(75
)
$
45,853
Cost of professional services revenue
81,145
(7,265
)
—
—
(94
)
73,786
Gross profit
141,876
10,037
1,776
2,560
169
156,418
Operating expenses:
Research and development
74,398
(17,568
)
—
4,506
(150
)
61,186
Sales and marketing
108,264
(11,129
)
—
—
(43
)
97,092
General and administrative
44,879
(6,312
)
—
—
(120
)
38,447
Operating loss
(85,665
)
45,046
1,776
(1,946
)
482
(40,307
)
Net loss
$
(83,394
)
$
45,046
$
1,776
$
(1,946
)
$
482
$
(38,036
)
Net loss per share, basic and diluted1
$
(0.75
)
$
(0.34
)
Gross margin
51
%
57
%
Subscription gross margin
74
%
78
%
Fiscal Year Ended January 31,
2019
GAAP2
Stock-based
Compensation
Amortization
of Acquired
Intangibles
Internal-use
Software
Charitable
Contribution
Non-GAAP
Cost of revenue:
Cost of subscription revenue
$
42,993
$
(1,967
)
$
(2,250
)
$
(1,286
)
$
—
$
37,490
Cost of professional services revenue
73,597
(5,900
)
—
26
—
67,723
Gross profit
118,399
7,867
2,250
1,260
—
129,776
Operating expenses:
Research and development
54,417
(6,345
)
—
2,222
—
50,294
Sales and marketing
95,169
(7,384
)
—
—
—
87,785
General and administrative
39,230
(3,761
)
—
—
(1,000
)
34,469
Operating loss
(70,417
)
25,357
2,250
(962
)
1,000
(42,772
)
Net loss
$
(72,741
)
$
25,357
$
2,250
$
(962
)
$
1,000
$
(45,096
)
Net loss per share, basic and diluted1
$
(0.80
)
$
(0.49
)
Gross margin
50
%
55
%
Subscription gross margin
74
%
77
%
(1)
GAAP and Non-GAAP net loss per share are
calculated based upon 111,122 and 91,267 basic and diluted
weighted-average shares of common stock for the fiscal year ended
January 31, 2020 and 2019, respectively.
(2)
Financial information for the prior period
presented above has been adjusted to reflect the adoption of ASC
606.
Free Cash Flow
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2020
2019
2020
2019
Net cash provided by (used in) operating
activities
$
4,009
$
(6,989
)
$
(3,590
)
$
(23,581
)
Less:
Purchases of property and equipment
(8,546
)
(2,791
)
(21,424
)
(13,412
)
Free cash flow
$
(4,537
)
$
(9,780
)
$
(25,014
)
$
(36,993
)
The following reconciliation of non-GAAP sales and marketing
expense is used in calculating Growth Efficiency Index:
GAAP
Stock-based
Compensation
New Headquarters
Costs
Non-GAAP
Twelve months ended January 31, 2020
$
108,264
$
(11,129
)
$
(43
)
$
97,092
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200312005808/en/
Investor Relations Contact:
Joon Huh investorrelations@zuora.com 650-419-1377
Media Relations Contact:
Jayne Gonzalez press@zuora.com 408-348-1087
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