/>
X

Zuora fiscal Q3 revenue, EPS beat expectations, forecast higher as well, shares jump

The maker of subscription billing software said it beat its own schedule for reaching positive free cash flow.
tiernan-ray
Written by Tiernan Ray on

Redwood City, California-based Zuora, the cloud software vendor that helps companies transition to subscription billing, this afternoon reported fiscal Q3 revenue and profit that topped analysts' expectations, and also forecast this quarter's revenue higher., sending its shares sharply higher in late trading.

CEO and founder Tien Tzuo said in prepared remarks that the company's "enterprise go-to-market initiatives are gaining traction, helping us land the largest deal in the company's history."

Added Tzuo, "The demand for subscription business models remains strong and we have strengthened the foundation for Zuora to continue to lead the market."

For the three months ended in October, Zuora reported revenue of $77.2 million, up 8%, year over year, and a net loss per share of one penny.

That compares to the average Street estimate for $74 million and a net loss of five cents a share. 

The company's free cash flow, the amount of cash generated in its business that it was able to hold onto, after capital investments, came in at breakeven, versus a negative amount of $5.1 million a year earlier. That was a quarter earlier than the company's forecast for break-even free cash flow, Tzuo noted. 

For the current quarter, the company sees revenue in a range of $75 million to $77 million, versus consensus of $74.3 million. EPS is seen in a range of negative five cents to negative six cents, versus consensus for negative five cents per share.

Shares of Zuora are up roughly five percent in late trading at $12.32. 

Related

AI startup Cerebras celebrated for chip triumph where others tried and failed
cerebras-wse-2-splash

AI startup Cerebras celebrated for chip triumph where others tried and failed

AI & Robotics
The best university coding bootcamps in 2022
developer-best-progamming-languages-shutterstock-1687431796.jpg

The best university coding bootcamps in 2022

Bootcamps
Best online colleges in Missouri 2022
The St. Louis Gateway Arch at dusk, viewed from across the river. The sky is dark blue and the park around the Arch is lit with yellow light.

Best online colleges in Missouri 2022

Education