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 Analysis

Adequate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

ZUO

2.6%

US Software

5.3%

US Market


1 Year Return

-60.9%

ZUO

9.5%

US Software

-10.7%

US Market

Return vs Industry: ZUO underperformed the US Software industry which returned 9.5% over the past year.

Return vs Market: ZUO underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

ZUOIndustryMarket
7 Day-4.7%2.6%5.3%
30 Day-38.0%-7.9%-13.6%
90 Day-45.5%-3.2%-19.8%
1 Year-60.9%-60.9%10.6%9.5%-8.9%-10.7%
3 Yearn/a106.4%97.6%15.5%8.0%
5 Yearn/a173.9%154.7%35.2%20.4%

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?

5.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ZUO ($8.05) is trading above our estimate of fair value ($6.74)

Significantly Below Fair Value: ZUO is trading above our estimate of fair value.


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 (5.5x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is Zuora forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

39.6%

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 (12.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ZUO's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZUO's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Zuora performed over the past 5 years?

-18.6%

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 -18.6% 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 (18.7%).


Return on Equity

High ROE: ZUO has a negative Return on Equity (-50.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Zuora's financial position?


Financial Position Analysis

Short Term Liabilities: ZUO's short term assets ($266.8M) exceed its short term liabilities ($165.6M).

Long Term Liabilities: ZUO's short term assets ($266.8M) exceed its long term liabilities ($71.9M).


Debt to Equity History and Analysis

Debt Level: ZUO's debt to equity ratio (6.4%) 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 high level of physical assets or inventory.

Debt Coverage by Assets: ZUO's debt is covered by short term assets (assets are 25.3x 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: Insufficient data to determine if ZUO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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 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

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

4.7yrs

Average management tenure


CEO

Tien Tzuo (51yo)

12.42s

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 ($USD3.00M) is about average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tien Tzuo
Co-Founder12.42yrsUS$3.00m6.83% $62.2m
Jennifer Rosenfeld Pileggi
Senior VP4.83yrsUS$963.20k0.058% $525.3k
K. Rao
14.25yrsno datano data
Tyler Sloat
Chief Financial Officer9.58yrsno data0.0070% $64.1k
Brent Cromley
Senior Vice President of Technology4.58yrsUS$1.68m0.0053% $48.5k
Joon Huh
Vice President of Investor Relationsno datano datano data
Thomas Krackeler
Chief Customer Officerno datano datano data
Karen Gaydon
Senior Vice President of ZEO Success2.58yrsno datano data
Christopher Battles
Chief Product Officer0.67yrno datano data
Robert Traube
Chief Revenue Officer0.50yrno data0.0045% $41.1k

4.7yrs

Average Tenure

48.5yo

Average Age

Experienced Management: ZUO's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tien Tzuo
Co-Founder12.42yrsUS$3.00m6.83% $62.2m
Timothy Haley
Independent Director9.5yrsno data0.16% $1.5m
Peter Fenton
Independent Director12.33yrsno data0.24% $2.2m
Kenneth Goldman
Independent Director4.17yrsUS$187.48k0.15% $1.3m
Magdalena Yesil
Lead Independent Directorno dataUS$189.36k0.012% $112.0k
Michelangelo A. Volpi
Independent Director8.42yrsno datano data
Jason Pressman
Independent Director11.58yrsno data0.0088% $80.3k

9.0yrs

Average Tenure

53yo

Average Age

Experienced Board: ZUO's board of directors are considered experienced (9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.8%.


Top Shareholders

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$910.954m
  • Shares outstanding: 113.16m
  • 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 Central platform that acts as an intelligent subscription management hub that allows customers to orient order-to-revenue operations. Its products include Zuora Billing for subscription billing; Zuora RevPro, a revenue recognition automation solution; Zuora CPQ for configuring deals, pricing, and quoting in a subscription business; and Zuora Collect designed to handle the complicated function of collections associated with subscription-based businesses. The company also provides Zuora Marketplace that offers industry-specific tools and third-party applications for its customers. Zuora, Inc. sells its products through its direct sales force, GSIs, consultants, and technology and ecosystem partners. The company was incorporated in 2006 and is headquartered in San Mateo, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 10:56
End of Day Share Price2020/03/31 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.