Zuora (ZUO) Q4 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/02/28 2:48 am EST

Subscription management platform Zuora (NYSE:ZUO) will be reporting results tomorrow afternoon. Here's what to expect.

Last quarter Zuora reported revenues of $101.1 million, up 13.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with accelerating growth in large customers but underwhelming revenue guidance for the next quarter. The company added 25 enterprise customers paying more than $100,000 annually to a total of 770.

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 10.5% year on year to $100.2 million, slowing down from the 14.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.

Zuora Total Revenue

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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.02%.

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 of what we can expect. Paycor delivered top-line growth of 28.9% year on year, beating analyst estimates by 4.34% and Asure Software reported revenues up 38.7% year on year, exceeding estimates by 23.3%. Paycor traded up 2% on the results, Asure was up 5.25%. Read our full analysis of Paycor's results here and Asure Software's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.05% over the last month. Zuora is up 17.9% during the same time, and is heading into the earnings with analyst price target of $11.8, compared to share price of $8.56.

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The author has no position in any of the stocks mentioned.