Zuora (ZUO, $6.33) posts narrower-than-expected fiscal Q3 loss
Zuora Inc. quarterly earnings that beat expectations, but provided a lower-than-expected guidance. It also announced plans to retrench around 11% of its staff.
The software company incurred a fiscal third-quarter net loss of -$37.0 million, or -28 cents a share, worse than the year-ago loss of -$22.9 million, or -18 cents a share. On an adjusted basis, Zuora lost -2 cents a share, flattish vs. the year-ago period, and better than the FactSet consensus expectation of a -6-cent loss per share.
Total revenue rose to $101.1 million (from $89.2 million), beating analysts’ expectations of $100.1 million. Subscription revenue of $86.6 million rose from $73.8 million a year earlier, and was above FactSet consensus of $85.7 million.
For the fiscal fourth quarter, Zuora is anticipating an adjusted loss per share of -6 cents to -7 cents, compared to analysts’ forecast of -3 cent adjusted loss per share. The company is expecting revenue in the range of $99.5 million to $101.5 million, vs. analysts’ estimate of $102.8 million.
For fiscal 2024, Zuora is expecting 11% to 14% in subscription revenue growth “with the low end of the subscription revenue growth range reflecting expectations if current macroeconomic conditions worsen.”
Zuora plans to lay off about -11% of employees due to the “macroeconomic dynamic,” CFO Todd McElhatton mentioned in a statement.
ZUO's Stochastic Oscillator remains in overbought zone for 15 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 May 25, 2023. 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 15, 2023. 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 May 10, 2023. Looking at past instances where ZUO's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
ZUO moved above its 50-day moving average on May 25, 2023 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 May 26, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 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 3-day Advance, the price is estimated to grow further. Considering data from situations where ZUO advanced for three days, in of 315 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 227 cases where ZUO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 slightly overvalued 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 (15.129) is normal, around the industry mean (31.480). P/E Ratio (0.000) is within average values for comparable stocks, (167.650). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.158). Dividend Yield (0.000) settles around the average of (0.068) among similar stocks. P/S Ratio (3.752) is also within normal values, averaging (75.604).
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 89, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an enterprise software company
Industry PackagedSoftware
ZUO and
Correlation & Price change
A.I.dvisor indicates that over the last year, ZUO has been loosely correlated with ZS. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if ZUO jumps, then ZS could also see price increases.
| Ticker / NAME | Correlation To ZUO | 1D Price Change % | ||
|---|---|---|---|---|
| ZUO | 100% | +5.16% | ||
| ZS - ZUO | 63% Loosely correlated | +5.40% | ||
| CDAY - ZUO | 62% Loosely correlated | +3.99% | ||
| SPLK - ZUO | 62% Loosely correlated | -0.12% | ||
| NOW - ZUO | 61% Loosely correlated | +0.96% | ||
| PAYC - ZUO | 61% Loosely correlated | +4.34% | ||
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