ZUO Stock Overview
Zuora, Inc., together with its subsidiaries, provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$9.19|
|52 Week High||US$23.25|
|52 Week Low||US$8.25|
|1 Month Change||-12.14%|
|3 Month Change||-38.65%|
|1 Year Change||-46.73%|
|3 Year Change||-42.71%|
|5 Year Change||n/a|
|Change since IPO||-54.05%|
Recent News & Updates
Does Zuora (NYSE:ZUO) Have A Healthy Balance Sheet?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Zuora: Incredible Bargain
Shares of Zuora rebounded modestly after posting strong Q1 results, but remain down nearly 50% year to date. Revenue growth accelerated to 16% y/y in Q1. In addition, the company expects to grow ARR north of 20% y/y in the current year. Zuora still remains a deep value stock trading at just 2.5x forward revenue.
|ZUO||US Software||US Market|
Return vs Industry: ZUO underperformed the US Software industry which returned -23.5% over the past year.
Return vs Market: ZUO underperformed the US Market which returned -20.4% over the past year.
|ZUO Average Weekly Movement||9.6%|
|Software Industry Average Movement||11.0%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: ZUO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: ZUO's weekly volatility (10%) has been stable over the past year.
About the Company
Zuora, Inc., together with its subsidiaries, provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The company offers Zuora Central platform that acts as an orchestration engine that allows customers quote-to-revenue operations. Its products include Zuora Billing that helps customers to set payment terms, manage hierarchical billing relationships, consolidate invoicing across multiple subscriptions, and tax transactions; Zuora Revenue, a revenue recognition automation solution; Zuora CPQ for configuring deals, pricing, and quoting in a subscription business; Zuora Collect designed to/ handle the complicated function of payments associated with subscription-based businesses; and Zuora Marketplace.
Zuora Fundamentals Summary
|ZUO fundamental statistics|
Is ZUO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ZUO income statement (TTM)|
|Cost of Revenue||US$143.62m|
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.81|
|Net Profit Margin||-29.18%|
How did ZUO perform over the long term?See historical performance and comparison
Is ZUO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ZUO?
Other financial metrics that can be useful for relative valuation.
|What is ZUO's n/a Ratio?|
Price to Sales Ratio vs Peers
How does ZUO's PS Ratio compare to its peers?
|ZUO PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
PING Ping Identity Holding
ATEN A10 Networks
Price-To-Sales vs Peers: ZUO is good value based on its Price-To-Sales Ratio (3.3x) compared to the peer average (9x).
Price to Earnings Ratio vs Industry
How does ZUO's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Sales vs Industry: ZUO is good value based on its Price-To-Sales Ratio (3.3x) compared to the US Software industry average (4.4x)
Price to Sales Ratio vs Fair Ratio
What is ZUO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||3.3x|
|Fair PS Ratio||4.3x|
Price-To-Sales vs Fair Ratio: ZUO is good value based on its Price-To-Sales Ratio (3.3x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).
Share Price vs Fair Value
What is the Fair Price of ZUO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ZUO ($9.19) is trading below our estimate of fair value ($28.71)
Significantly Below Fair Value: ZUO is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ZUO's PEG Ratio to determine if it is good value.
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How is Zuora forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZUO is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ZUO is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ZUO is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ZUO's revenue (17.5% per year) is forecast to grow faster than the US market (8.3% per year).
High Growth Revenue: ZUO's revenue (17.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ZUO's Return on Equity is forecast to be high in 3 years time
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How has Zuora performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZUO is currently unprofitable.
Growing Profit Margin: ZUO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ZUO is unprofitable, and losses have increased over the past 5 years at a rate of 11.7% per year.
Accelerating Growth: Unable to compare ZUO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ZUO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).
Return on Equity
High ROE: ZUO has a negative Return on Equity (-55.56%), as it is currently unprofitable.
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How is Zuora's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: ZUO's short term assets ($558.4M) exceed its short term liabilities ($226.8M).
Long Term Liabilities: ZUO's short term assets ($558.4M) exceed its long term liabilities ($253.6M).
Debt to Equity History and Analysis
Debt Level: ZUO has more cash than its total debt.
Reducing Debt: ZUO's debt to equity ratio has increased from 7.7% to 108.6% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable ZUO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ZUO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.5% per year.
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What is Zuora current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ZUO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ZUO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ZUO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ZUO's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as ZUO has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tien Tzuo (53 yo)
Mr. Tien Tzuo has been co-founded Zuora, Inc. in November 2007 and has been its Chief Executive Officer November 2007. Mr. Tzuo serves as an Independent Director at Vonage Holdings Corp. since July 2020. M...
CEO Compensation Analysis
Compensation vs Market: Tien's total compensation ($USD7.42M) is above average for companies of similar size in the US market ($USD4.00M).
Compensation vs Earnings: Tien's compensation has increased whilst the company is unprofitable.
Experienced Management: ZUO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: ZUO's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.
Zuora, Inc.'s employee growth, exchange listings and data sources
- Name: Zuora, Inc.
- Ticker: ZUO
- Exchange: NYSE
- Founded: 2006
- Industry: Systems Software
- Sector: Software
- Implied Market Cap: US$1.187b
- Shares outstanding: 129.20m
- Website: https://www.zuora.com
Number of Employees
- Zuora, Inc.
- 101 Redwood Shores Parkway
- Redwood City
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/29 00:00|
|End of Day Share Price||2022/06/29 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.