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.