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.