Zuora (ZUO) To Report Earnings Tomorrow: Here Is What To Expect

In this article:
ZUO Cover Image
Zuora (ZUO) To Report Earnings Tomorrow: Here Is What To Expect

subscription management platform Zuora (NYSE:ZUO) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Zuora met analysts' revenue expectations last quarter, reporting revenues of $110.7 million, up 7.4% year on year. It was a weaker quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.

Is Zuora a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Zuora's revenue to grow 5.5% year on year to $108.8 million, slowing from the 10.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

Zuora Total Revenue
Zuora Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zuora has missed Wall Street's revenue estimates twice over the last two years.

Looking at Zuora's peers in the finance and HR software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Flywire delivered year-on-year revenue growth of 20.9%, beating analysts' expectations by 6%, and Marqeta reported a revenue decline of 45.7%, in line with consensus estimates. Flywire traded down 16.3% following the results while Marqeta's stock price was unchanged.

Read our full analysis of Flywire's results here and Marqeta's results here.

There has been positive sentiment among investors in the finance and HR software segment, with share prices up 6.5% on average over the last month. Zuora is up 6.5% during the same time and is heading into earnings with an average analyst price target of $11.5 (compared to the current share price of $10.26).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

Advertisement