Zuora (ZUO, $22.39) down -12% pre-market, on weaker Q1 revenue guidance, despite Q4 beat
Zuora shares slumped -12.9% during pre-market Friday, after the company reported weaker-than-expected guidance on first fiscal quarter revenue.
The company, which provides enterprise software for businesses to manage subscription-based billings, has predicted revenue of $65 million to $66 million for its first fiscal quarter, falling short of Wall Street expectation of $66 million.
Zuora expects to incur a loss of -12 cents to -13 cents a share for the quarter, which is in line with what analysts are expecting.
Zuora’s expectation for the full fiscal-year revenue ranges between $293 million and $297.5 million, compared to the Street forecast of $294.2 million. The company’s projection of -40 cents to -44 cents loss a share for the year matches analysts’ expectations.
The company’s actual results for the fourth quarter were more favourable, with its adjusted loss of -11 cents a share meeting analysts’ estimates, and its revenue of $64.1 million exceeding expectations of $62.8 million.
Speaking of the company’s latest performance, CEO Tien Tzuo emphasized that more than $10 billion of subscription-based billings were processed through Zuora’s system. He also hinted that an increasing number of businesses that are joining the global subscription network should count on Zuora as their strategic partner in the long-term.
Momentum Indicator for ZUO turns positive, indicating new upward trend
ZUO saw its Momentum Indicator move above the 0 level on January 03, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned positive. In of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZUO advanced for three days, in of 298 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 179 cases where ZUO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for ZUO moved out of overbought territory on January 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where ZUO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ZUO turned negative on January 31, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZUO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ZUO broke above its upper Bollinger Band on January 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ZUO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.690) is normal, around the industry mean (30.872). P/E Ratio (0.000) is within average values for comparable stocks, (160.113). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.763). Dividend Yield (0.000) settles around the average of (0.085) among similar stocks. P/S Ratio (2.880) is also within normal values, averaging (58.109).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZUO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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General Information
an enterprise software company
Industry PackagedSoftware