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ZUO

Zuora NYSE:ZUO Stock Report

Last Price

US$10.33

Market Cap

US$1.3b

7D

4.3%

1Y

-30.5%

Updated

19 May, 2022

Data

Company Financials +
ZUO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

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.

Zuora Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zuora
Historical stock prices
Current Share PriceUS$10.33
52 Week HighUS$23.25
52 Week LowUS$9.48
Beta2.13
1 Month Change-24.76%
3 Month Change-29.34%
1 Year Change-30.49%
3 Year Change-50.34%
5 Year Changen/a
Change since IPO-48.35%

Recent News & Updates

Shareholder Returns

ZUOUS SoftwareUS Market
7D4.3%0.9%0.1%
1Y-30.5%-13.8%-12.7%

Return vs Industry: ZUO underperformed the US Software industry which returned -12.9% over the past year.

Return vs Market: ZUO underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is ZUO's price volatile compared to industry and market?
ZUO volatility
ZUO Average Weekly Movement9.1%
Software Industry Average Movement11.4%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: ZUO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ZUO's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20061,393Tien Tzuohttps://www.zuora.com

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

How do Zuora's earnings and revenue compare to its market cap?
ZUO fundamental statistics
Market CapUS$1.27b
Earnings (TTM)-US$99.42m
Revenue (TTM)US$346.74m

3.8x

P/S Ratio

-13.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZUO income statement (TTM)
RevenueUS$346.74m
Cost of RevenueUS$140.11m
Gross ProfitUS$206.63m
Other ExpensesUS$306.06m
Earnings-US$99.42m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

May 25, 2022

Earnings per share (EPS)-0.77
Gross Margin59.59%
Net Profit Margin-28.67%
Debt/Equity Ratio1.0%

How did ZUO perform over the long term?

See historical performance and comparison

Valuation

Is Zuora undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ZUO ($10.33) is trading below our estimate of fair value ($53.52)

Significantly Below Fair Value: ZUO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZUO is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: ZUO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZUO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZUO is overvalued based on its PB Ratio (7.8x) compared to the US Software industry average (3.5x).


Future Growth

How is Zuora forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.9%

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 (16.6% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ZUO's revenue (16.6% 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


Past Performance

How has Zuora performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.3%

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 12.3% 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 (27.6%).


Return on Equity

High ROE: ZUO has a negative Return on Equity (-58.28%), as it is currently unprofitable.


Financial Health

How is Zuora's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ZUO's short term assets ($328.3M) exceed its short term liabilities ($219.3M).

Long Term Liabilities: ZUO's short term assets ($328.3M) exceed its long term liabilities ($51.3M).


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 0.07% to 1% over the past 5 years.


Balance Sheet


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 39% per year.


Dividend

What is Zuora current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • 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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Tien Tzuo (53 yo)

14.5yrs

Tenure

US$7,424,000

Compensation

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 ($USD7.42M) is above average for companies of similar size in the US market ($USD5.41M).

Compensation vs Earnings: Tien's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ZUO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: ZUO's board of directors are considered experienced (3.4 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Company Information

Zuora, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Zuora, Inc.
  • Ticker: ZUO
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$1.266b
  • Shares outstanding: 129.14m
  • Website: https://www.zuora.com

Number of Employees


Location

  • Zuora, Inc.
  • 101 Redwood Shores Parkway
  • Redwood City
  • California
  • 94065
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/01/31
Annual Earnings2022/01/31


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.