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Earnings Call Summary | Zuora(ZUO.US) Q1 2025 Earnings Conference

Futu News ·  May 23 07:33  · Conference Call

The following is a summary of the Zuora, Inc. (ZUO) Q1 2025 Earnings Call Transcript:

Financial Performance:

  • Zuora reported a Q1 subscription revenue of $99 million, marking a 10% increase year-over-year.

  • Non-GAAP operating income exceeded guidance at $18.6 million, representing a 17% operating margin.

  • Adjusted free cash flow for the quarter was significantly high at $31.4 million.

  • The company is on track to exit the fiscal at Rule of 40 framework, a significant jump from the previous year's level 26.

  • ACV growth for customers over $250,000 per year increased by more than 10% this quarter.

  • Despite the challenging market conditions, an ARR growth of 8% to 10% is expected by the end of the year.

Business Progress:

  • Zuora made significant progress in expanding their customer base, fueled by increasing customer satisfaction levels.

  • The company saw a noticeable increase in cross-selling, with customers adding other Zuora products or adopting their technology in new business units.

  • The acquisition of 'Togai', a leading metering and rating solution, expanded the company's offerings beyond just billing to a complete monetization software stack for diverse business models.

  • Zuora continues to pivot towards more digital and inbound techniques for pipeline generation.

  • Emphasis is placed on retaining high-quality customers and enhancing expansion within the existing customer base.

  • There is significant pipeline growth due to efficient lead generation strategies, including the use of digital technologies and AI tools.

More details: Zuora IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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