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.

Rewards

Revenue is forecast to grow 17.21% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

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

Stable Share Price: ZUO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.5%

ZUO

-1.9%

US Software

-0.3%

US Market


1 Year Return

-17.9%

ZUO

33.3%

US Software

18.6%

US Market

Return vs Industry: ZUO underperformed the US Software industry which returned 33.3% over the past year.

Return vs Market: ZUO underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

ZUOIndustryMarket
7 Day-6.5%-1.9%-0.3%
30 Day3.8%4.5%2.2%
90 Day-2.7%4.8%5.6%
1 Year-17.9%-17.9%35.4%33.3%21.1%18.6%
3 Yearn/a126.9%117.8%45.6%36.2%
5 Yearn/a182.3%162.2%71.1%52.2%

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 compared to its fair value and its price relative to the market?

9.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ZUO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ZUO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ZUO is unprofitable, so we can't compare its PE Ratio to the 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 (9.7x) compared to the US Software industry average (5.6x).


Next Steps

Future Growth

How is Zuora forecast 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 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 (17.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ZUO's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZUO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Zuora performed over the past 5 years?

-19.4%

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 -19.4% 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 (20.8%).


Return on Equity

High ROE: ZUO has a negative Return on Equity (-48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zuora's financial position?


Financial Position Analysis

Short Term Liabilities: ZUO's short term assets ($245.6M) exceed its short term liabilities ($127.9M).

Long Term Liabilities: ZUO's short term assets ($245.6M) exceed its long term liabilities ($13.6M).


Debt to Equity History and Analysis

Debt Level: ZUO's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ZUO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: ZUO has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZUO's 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.

Stable Cash Runway: ZUO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ZUO has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -8.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ZUO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ZUO's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZUO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Tien Tzuo (51yo)

12.1yrs

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

Compensation vs Market: Tien's total compensation ($USD3.00M) is about average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

4.4yrs

Average Tenure

48.5yo

Average Age

Experienced Management: ZUO's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

53yo

Average Age

Experienced Board: ZUO's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: ZUO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$704,72101 Nov 19
Robert Traube
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares48,973
Max PriceUS$14.39
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

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 110.4%.


Management Team

  • Robbie Traube

    Chief Revenue Officer

    • Tenure: 0.2yrs
  • Jennifer Rosenfeld Pileggi (55yo)

    Senior VP

    • Tenure: 4.5yrs
    • Compensation: US$963.20k
  • Tien Tzuo (51yo)

    Co-Founder

    • Tenure: 12.1yrs
    • Compensation: US$3.00m
  • Tom Krackeler (47yo)

    Chief Customer Officer

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

    Chief Financial Officer

    • Tenure: 9.3yrs
  • K. Rao

    • Tenure: 13.9yrs
  • Karen Gaydon

    Senior Vice President of ZEO Success

    • Tenure: 2.3yrs
  • Brent Cromley (50yo)

    Senior Vice President of Technology

    • Tenure: 4.3yrs
    • Compensation: US$1.68m
  • Chris Battles (43yo)

    Chief Product Officer

    • Tenure: 0.3yrs
  • Joon Huh

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tim Haley (63yo)

    Independent Director

    • Tenure: 9.2yrs
  • Peter Fenton (46yo)

    Independent Director

    • Tenure: 12yrs
  • Ken Goldman (70yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$187.48k
  • Magdalena Yesil (60yo)

    Lead Independent Director

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

    Independent Director

    • Tenure: 8.1yrs
  • Tien Tzuo (51yo)

    Co-Founder

    • Tenure: 12.1yrs
    • Compensation: US$3.00m
  • Jason Pressman (45yo)

    Independent Director

    • Tenure: 11.3yrs

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$1.725b
  • Shares outstanding: 112.30m
  • 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 Analysis2019/12/07 00:49
End of Day Share Price2019/12/06 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.