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.
ZUO sees its Stochastic Oscillator recovers from oversold territory
On April 12, 2024, the Stochastic Oscillator for ZUO moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 57 instances where the indicator left the oversold zone. In of the 57 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 17, 2024. You may want to consider a long position or call options on ZUO as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ZUO just turned positive on April 17, 2024. Looking at past instances where ZUO's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
ZUO moved above its 50-day moving average on April 17, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ZUO crossed bullishly above the 50-day moving average on April 18, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where ZUO advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
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 April 17, 2024. 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 Aroon Indicator for ZUO entered a downward trend on April 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 (29.910). P/E Ratio (0.000) is within average values for comparable stocks, (155.839). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.725). Dividend Yield (0.000) settles around the average of (0.081) among similar stocks. P/S Ratio (2.880) is also within normal values, averaging (55.319).
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 90, placing this stock worse than average.
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General Information
an enterprise software company
Industry PackagedSoftware