NYSE:ZUO

Stock Analysis Report

Executive Summary

Zuora, Inc. provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business.

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Zuora's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

NYSE:ZUO

-0.3%

US Software

1.3%

US Market


1 Year Return

-37.0%

NYSE:ZUO

11.8%

US Software

2.0%

US Market

ZUO underperformed the Software industry which returned 11.1% over the past year.

ZUO underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

ZUOIndustryMarket
7 Day-1.7%-0.3%1.3%
30 Day12.2%0.3%3.9%
90 Day-3.0%0.4%3.4%
1 Year-37.0%-37.0%13.4%11.8%4.2%2.0%
3 Yearn/a118.1%109.5%47.2%37.6%
5 Yearn/a160.6%141.3%60.5%42.9%

Price Volatility Vs. Market

How volatile is Zuora's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zuora undervalued based on future cash flows and its price relative to the stock market?

9.75x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Zuora to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Zuora to establish if it is available at substantial discount.


Price Based on Earnings

Zuora is loss making, we can't compare its value to the US Software industry average.

Zuora is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Zuora, we can't assess if its growth is good value.


Price Based on Value of Assets

Zuora is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Zuora expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zuora's revenue is expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).

Zuora is not considered high growth as it is expected to be loss making for the next 1-3 years.

Zuora's revenue growth is expected to exceed the United States of America market average.

Unable to compare Zuora's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Zuora's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Zuora will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Zuora performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Zuora does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Zuora's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Zuora's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Zuora has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Zuora has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Zuora improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Zuora's financial position?


Financial Position Analysis

Zuora is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zuora's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Zuora's level of debt (5.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Zuora's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 27.6x debt.


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.

Zuora has sufficient cash runway for more than 3 years based on current free cash flow.

Zuora has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 8.1% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Zuora's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Zuora's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Zuora has not reported any payouts.

Unable to verify if Zuora's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Zuora has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Zuora's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Tien Tzuo (51yo)

11.8yrs

Tenure

US$2,996,581

Compensation

Mr. Tien Tzuo co-founded Zuora, Inc. in November 2007 and has been its Chief Executive Officer November 2007. Mr. Tzuo serves as an Advisor of LiveOps, Inc. In his 9 years at salesforce.com, Mr. Tzuo built ...


CEO Compensation Analysis

Tien's remuneration is about average for companies of similar size in United States of America.

Tien's compensation has increased whilst company is loss making.


Management Age and Tenure

4.1yrs

Average Tenure

48.5yo

Average Age

The tenure for the Zuora management team is about average.


Board Age and Tenure

8.4yrs

Average Tenure

53yo

Average Age

The tenure for the Zuora board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$186,29203 Apr 19
John Gurley
EntityIndividual
Shares9,354
Max PriceUS$19.92
SellUS$2,458,64803 Apr 19
Bruce Dunlevie
EntityIndividual
Shares124,203
Max PriceUS$19.80
SellUS$564,79103 Apr 19
Steven Spurlock
EntityIndividual
Shares28,412
Max PriceUS$19.92
SellUS$2,969,77107 Jan 19
Index Ventures
EntityCompany
Shares161,116
Max PriceUS$18.43
SellUS$2,464,20820 Dec 18
Index Ventures
EntityCompany
Shares135,160
Max PriceUS$18.26
SellUS$1,347,54817 Dec 18
Index Ventures
EntityCompany
Shares73,271
Max PriceUS$18.44
SellUS$2,205,32109 Oct 18
Robert Kagle
EntityIndividual
Shares104,430
Max PriceUS$21.12
SellUS$194,52904 Oct 18
John Gurley
EntityIndividual
Shares9,369
Max PriceUS$20.76
SellUS$595,53804 Oct 18
Steven Spurlock
EntityIndividual
Shares28,450
Max PriceUS$20.95

Ownership Breakdown


Management Team

  • Jennifer Rosenfeld Pileggi (55yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$963.20k
  • Tien Tzuo (51yo)

    Co-Founder

    • Tenure: 11.8yrs
    • Compensation: US$3.00m
  • Tom Krackeler (47yo)

    Chief Customer Officer

    • Tenure: 0yrs
  • Tyler Sloat (45yo)

    Chief Financial Officer

    • Tenure: 9yrs
  • K. Rao

    • Tenure: 13.7yrs
  • Jagan Reddy

    Senior Vice President of RevPro

    • Tenure: 0.7yrs
  • Karen Gaydon

    Senior Vice President of ZEO Success

    • Tenure: 2yrs
  • Brent Cromley (50yo)

    Senior Vice President of Technology

    • Tenure: 4yrs
    • Compensation: US$1.68m
  • Chris Battles (43yo)

    Chief Product Officer

    • Tenure: 0.08yrs
  • Joon Huh

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tim Haley (63yo)

    Director

    • Tenure: 8.9yrs
  • Peter Fenton (46yo)

    Director

    • Tenure: 11.8yrs
  • Ken Goldman (70yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$187.48k
  • Magdalena Yesil (60yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$189.36k
  • Mike A. Volpi (53yo)

    Director

    • Tenure: 7.8yrs
  • Tien Tzuo (51yo)

    Co-Founder

    • Tenure: 11.8yrs
    • Compensation: US$3.00m
  • Jason Pressman (45yo)

    Director

    • Tenure: 11yrs

Company Information

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


Key Information

  • Name: Zuora, Inc.
  • Ticker: ZUO
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$1.687b
  • Shares outstanding: 111.09m
  • Website: https://www.zuora.com

Number of Employees


Location

  • Zuora, Inc.
  • 3050 South Delaware Street
  • Suite 301
  • San Mateo
  • California
  • 94404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZUONYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2018
2ZUDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2018
0XL5LSE (London Stock Exchange)YesClass A Common StockGBUSDApr 2018

Biography

Zuora, Inc. 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 Centra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:32
End of Day Share Price2019/09/13 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.