Zuora (NYSE:ZUO) Releases Q2 Earnings Guidance

Posted by ABMN Staff on May 26th, 2023

Zuora (NYSE:ZUO – Get Rating) issued an update on its second quarter earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of $0.03-0.04 for the period, compared to the consensus estimate of $0.01. The company issued revenue guidance of $108.0-109.5 million, compared to the consensus revenue estimate of $106.72 million. Zuora also updated its FY24 guidance to $0.15-0.17 EPS.

Zuora Stock Up 19.9 %

Shares of ZUO stock opened at $10.20 on Friday. Zuora has a one year low of $5.45 and a one year high of $10.62. The company’s 50-day moving average is $8.63 and its 200 day moving average is $7.96. The company has a debt-to-equity ratio of 2.17, a current ratio of 1.66 and a quick ratio of 1.66.

Zuora (NYSE:ZUO – Get Rating) last announced its quarterly earnings data on Wednesday, March 1st. The company reported ($0.16) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.11. Zuora had a negative net margin of 29.09% and a negative return on equity of 66.53%. The company had revenue of $103.04 million for the quarter, compared to the consensus estimate of $99.70 million. Sell-side analysts forecast that Zuora will post -0.64 earnings per share for the current fiscal year.

Analyst Ratings Changes

ZUO has been the topic of several recent analyst reports. Jefferies Financial Group increased their price objective on shares of Zuora to $10.00 in a research report on Wednesday, March 15th. Needham & Company LLC restated a buy rating and set a $15.00 target price on shares of Zuora in a research note on Thursday, March 2nd. Canaccord Genuity Group upped their target price on shares of Zuora from $15.00 to $16.00 and gave the company a buy rating in a research note on Friday, March 3rd. Finally, Lake Street Capital upped their target price on shares of Zuora from $11.00 to $12.00 in a research note on Thursday. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of Moderate Buy and an average price target of $13.38.

Insider Transactions at Zuora

In other news, CEO Tien Tzuo sold 12,500 shares of the stock in a transaction that occurred on Friday, March 31st. The shares were sold at an average price of $9.64, for a total value of $120,500.00. Following the transaction, the chief executive officer now owns 6,352 shares in the company, valued at approximately $61,233.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other Zuora news, CFO Todd Mcelhatton sold 7,500 shares of the firm’s stock in a transaction that occurred on Monday, April 10th. The shares were sold at an average price of $9.00, for a total transaction of $67,500.00. Following the sale, the chief financial officer now owns 135,775 shares in the company, valued at approximately $1,221,975. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Tien Tzuo sold 12,500 shares of the firm’s stock in a transaction that occurred on Friday, March 31st. The stock was sold at an average price of $9.64, for a total transaction of $120,500.00. Following the sale, the chief executive officer now owns 6,352 shares in the company, valued at approximately $61,233.28. The disclosure for this sale can be found here. Insiders have sold 86,606 shares of company stock worth $803,526 in the last quarter. Company insiders own 9.25% of the company’s stock.

Institutional Investors Weigh In On Zuora

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. raised its stake in Zuora by 53.2% during the 1st quarter. Ameriprise Financial Inc. now owns 83,995 shares of the company’s stock worth $830,000 after acquiring an additional 29,155 shares during the period. New York State Common Retirement Fund grew its holdings in Zuora by 554.8% during the 1st quarter. New York State Common Retirement Fund now owns 515,400 shares of the company’s stock valued at $5,092,000 after buying an additional 436,688 shares in the last quarter. Quilter Plc purchased a new stake in Zuora during the 1st quarter valued at approximately $1,986,000,000. Penn Capital Management Company LLC purchased a new stake in Zuora during the 1st quarter valued at approximately $7,113,000. Finally, State Street Corp grew its holdings in Zuora by 7.0% during the 1st quarter. State Street Corp now owns 2,706,987 shares of the company’s stock valued at $26,745,000 after buying an additional 177,344 shares in the last quarter. Institutional investors own 69.11% of the company’s stock.

Zuora Company Profile

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Zuora, Inc engages in the provision of cloud-based subscription management platform. Its products include Zuora Billing, Zuora Revenue, Zuora CPQ, Zuora Collect AI, and Zuora Analytics. It offers solutions to software, healthcare, education, B2C, and communications industries. The company was founded in 2007 by K.V.