| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$9.80 |
| 52 Week High | US$23.25 |
| 52 Week Low | US$9.48 |
| Beta | 2.13 |
| 1 Month Change | -26.65% |
| 3 Month Change | -35.61% |
| 1 Year Change | -32.60% |
| 3 Year Change | -56.23% |
| 5 Year Change | n/a |
| Change since IPO | -51.00% |
Recent News & Updates
Shareholder Returns
| ZUO | US Software | US Market | |
|---|---|---|---|
| 7D | 0.9% | -0.5% | 0.5% |
| 1Y | -32.6% | -12.9% | -11.5% |
Return vs Industry: ZUO underperformed the US Software industry which returned -9% over the past year.
Return vs Market: ZUO underperformed the US Market which returned -8.1% over the past year.
Price Volatility
| ZUO volatility | |
|---|---|
| ZUO Average Weekly Movement | 9.0% |
| Software Industry Average Movement | 11.4% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.0% |
| 10% least volatile stocks in US Market | 3.0% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2006 | 1,393 | Tien Tzuo | https://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
| ZUO fundamental statistics | |
|---|---|
| Market Cap | US$1.26b |
| Earnings (TTM) | -US$99.42m |
| Revenue (TTM) | US$346.74m |
3.6x
P/S Ratio-12.6x
P/E RatioIs ZUO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ZUO income statement (TTM) | |
|---|---|
| Revenue | US$346.74m |
| Cost of Revenue | US$140.11m |
| Gross Profit | US$206.63m |
| Other Expenses | US$306.06m |
| Earnings | -US$99.42m |
Last Reported Earnings
Jan 31, 2022
Next Earnings Date
May 25, 2022
| Earnings per share (EPS) | -0.78 |
| Gross Margin | 59.59% |
| Net Profit Margin | -28.67% |
| Debt/Equity Ratio | 1.0% |
How did ZUO perform over the long term?
See historical performance and comparisonValuation
Is Zuora undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation 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 ($9.8) is trading below our estimate of fair value ($53.86)
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 (7.4x) compared to the US Software industry average (3.7x).
Future Growth
How is Zuora forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score
1/6Future 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
0/6Past 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 (29.6%).
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
5/6Financial 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
0/6Dividend 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 ($USD5.45M).
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 4.8%.
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$1.255b
- Shares outstanding: 128.07m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/18 00:00 |
| End of Day Share Price | 2022/05/18 00:00 |
| Earnings | 2022/01/31 |
| Annual Earnings | 2022/01/31 |
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.