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 in +0.20% Uptrend, advancing for three consecutive days on January 08, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where ZUO advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 03, 2025. You may want to consider a long position or call options on ZUO as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
ZUO broke above its upper Bollinger Band on January 08, 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 (31.428). P/E Ratio (0.000) is within average values for comparable stocks, (158.878). 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 (58.898).
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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an enterprise software company
Industry PackagedSoftware