The earnings call reflected a mixed performance with strong revenue growth and a solid increase in operating income and cash flow. However, there were notable challenges such as a decline in professional services revenue, lower retention rates, and a slowdown in ARR growth due to deal scrutiny and elongated sales cycles.
Company Guidance
During Zuora's Q2 2025 earnings call, the company provided guidance highlighting several key financial metrics. Zuora achieved a subscription revenue of $104.1 million, marking a 9% year-over-year growth. The company also recorded a non-GAAP operating income of $25.6 million, resulting in a 22% operating margin. Additionally, Zuora generated an adjusted free cash flow of $12.2 million. For the third quarter, Zuora anticipates subscription revenue between $104.5 million and $105.5 million and total revenue ranging from $115 million to $117 million. The company also raised its full-year guidance, expecting subscription revenue to be between $414.5 million and $416.5 million, total revenue between $455.5 million and $461.5 million, and non-GAAP operating income of $90 million to $93 million. Furthermore, Zuora aims to achieve a Rule of 30 by the fiscal year's end, emphasizing a balance of growth and profitability.
Subscription Revenue Growth
Q2 subscription revenue was $104 million, up 9% year-over-year.
Record Non-GAAP Operating Income
Exceeded guidance with $25.6 million in non-GAAP operating income, achieving a 22% operating margin.
Adjusted Free Cash Flow
Generated $12.2 million in adjusted free cash flow during the quarter.
Enterprise Customer Expansions
Significant expansions with existing customers like Zillow Group and Oura.
Gartner Recognition
Zuora was recognized as a leader in the Gartner Magic Quadrant for recurring billing applications.
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Zuora (ZUO) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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ZUO Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Dec 09, 2024
$9.95
$9.97
+0.20%
Aug 21, 2024
$8.50
$8.49
-0.12%
May 22, 2024
$9.86
$10.20
+3.45%
Feb 28, 2024
$8.59
$8.08
-5.94%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Zuora (ZUO) report earnings?
Zuora (ZUO) is schdueled to report earning on Feb 26, 2025, TBA Not Confirmed.
What is Zuora (ZUO) earnings time?
Zuora (ZUO) earnings time is at Feb 26, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.