Zuora Inc Reports Fiscal Q2 2025 Financial Results
Intellectia.AI Updated: 2024-08-21
Zuora, Inc. Reports Fiscal Q2 2025 Financial Results
Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, announced its financial results for the fiscal second quarter ended July 31, 2024.
Key Financial Metrics:
| Metric | Q2 FY2025 | Q2 FY2024 | YoY Change | Consensus Estimate (Current Quarter) |
|---|---|---|---|---|
| Total Revenue | $115.4M | $107.8M | 7% | $112.62M |
| GAAP Net Loss | $7.2M | $22.6M | -68% | N/A |
| GAAP EPS | $0.05 | $0.16 | -69% | $0.09 |
| Non-GAAP Net Income | $29.1M | $10.0M | 191% | N/A |
| Non-GAAP EPS | $0.19 | $0.07 | 171% | N/A |
Interpretation: Zuora demonstrated strong year-over-year financial growth, significantly reducing its GAAP net loss by 68% and achieving a 171% increase in non-GAAP EPS. Total revenue of $115.4 million surpassed consensus estimates of $112.62 million, indicating robust business performance.
Revenue Breakdown by Segment:
| Segment | Q2 FY2025 Revenue | YoY Change |
|---|---|---|
| Subscription Revenue | $104.1M | 9% |
| Total Revenue | $115.4M | 7% |
Interpretation: Subscription revenue, which forms the core of Zuora’s business, grew by 9% year-over-year, contributing significantly to the overall revenue increase of 7%.
Key Operational Data:
| Operational Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Customers with ACV >= $250,000 | 445 | 444 |
| Dollar-Based Retention Rate (DBRR) | 104% | 107% |
| Annual Recurring Revenue (ARR) | $412.3M | $384.2M |
Interpretation: Key operational metrics show stability with a marginal increase in high-value customers and consistent ARR growth, although a slight decline in DBRR was noted.
Comments from Company Officers:
Tien Tzuo, Founder and CEO at Zuora, stated, "I'm proud of our ZEOs for delivering a solid second quarter. From our install base to the analyst community, we continue to be recognized for our market leadership." Chief Financial Officer, Todd McElhatton, added, "In the second quarter, we reached our goal to operate at a Rule of 30 two quarters ahead of plan. We remain committed to margin expansion and profitability."
Dividends and Share Repurchase Program:
There were no mentions of dividends or share repurchase programs in the report.
Forward Guidance:
Zuora provided optimistic forward guidance for the third quarter and full fiscal year 2025, raising both its revenue outlook and non-GAAP operating income ranges while accounting for the operating expense impact of recent acquisitions.
Stock Price Movement:
Upon the earnings release, Zuora’s stock experienced a positive price movement, increasing by approximately 3.53%.
In summary, Zuora, Inc. showcased robust financial performance for the fiscal second quarter of 2025 with strong revenue and significant improvements in profitability metrics. The company’s forward guidance and strategic acquisitions reflect ongoing growth potential and market leadership in the monetization technology space.
