Zuora (ZUO) Reports Q4: Everything You Need To Know Ahead Of Earnings
subscription management platform Zuora (NYSE:ZUO) will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter Zuora reported revenues of $109.8 million, up 8.7% year on year, beating analyst revenue expectations by 1.1%. It was a decent quarter for the company, with a significant improvement in its gross margin.
Is Zuora buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Zuora's revenue to grow 7.5% year on year to $110.8 million, slowing down from the 13.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1%.
Looking at Zuora's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Workday delivered top-line growth of 16.7% year on year, beating analyst estimates by 0.3% and Asure reported revenue decline of 10.3% year on year, missing analyst estimates by 0.2%. Workday traded down 5% on the results, and Asure was down 1.2%.
Read our full analysis of Workday's results here and Asure's results here.
Investors in the finance and HR software segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. Zuora is down 12.5% during the same time, and is heading into the earnings with analyst price target of $12.5, compared to share price of $8.3.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
