New Subscription Order Management Capabilities Fuel Revenue Growth
for All Companies in the Subscription Economy
SAN MATEO, Calif.--(BUSINESS WIRE)--
Zuora,
Inc. (NYSE: ZUO) the leading cloud-based subscription management
platform provider, today announced at Subscribed™
a major upgrade to the Zuora
Central Platform with the addition of Zuora Orders. This new upgrade
leapfrogs all existing capabilities, giving subscription companies
unlimited order flexibility, a new set of metrics, and complete
order-to-revenue automation.
The upgraded platform will function as the system of record for Zoom
Video Communications, Inc., helping the company build upon its
triple-digit year-over-year revenue growth rate.
According to the Subscription
Economy Index™ (SEI), Zuora’s proprietary index that tracks the
growth of the Subscription Economy, subscription revenue is growing
faster every year across all industries - from 13.8 percent (2012-2015)
to 17.2 percent (2015-2017) and now at 22.6 percent (2017-2018).
Sustaining growth is becoming harder and harder, as customers demand
control of how they manage their own subscriptions, by upgrading,
downgrading, changing usage, and adding users.
Insights from an upcoming SEI report include:
-
Companies that make an average of at least 1 change order per
subscription grow 3 times faster than companies that don’t offer
product changes
-
Giving the option for a customer to suspend and resume a subscription
prevents one in six churns
-
For a typical subscription business, 70 percent of revenue comes from
the existing customer base through renewals, upsells, and cross sells
“Seamlessly managing customer subscription changes is essential to
continued growth. This requires businesses to have a fundamentally
different order management solution that is able to handle mass volumes
of complex order changes that traditional ERP systems can’t. That’s why
we launched Zuora Orders,” said Zuora SVP of Product Tom Krackeler.
Cloud-based video communications company Zoom, for example, has hundreds
of thousands of customers who at times need to expand or change their
deployment, which is processed through Zuora Central. Before Zuora,
Zoom’s finance, sales and IT teams faced challenges with supporting
multi-year contracts, generating accurate order metrics, and seamlessly
managing the order-to-revenue process. With their land-and-expand
strategy, subscription order management is critical to Zoom’s revenue
growth.
“Zoom has experienced triple-digit YoY revenue growth over the past
several years. We needed a solution that could help us scale our entire
business operations and deliver a personalized experience to our valued
customers. Zuora has proven to be a trusted partner and a true system of
record for our subscription-based business,” said Zoom CFO Kelly
Steckelberg.
This Zuora Central platform upgrade makes Zuora the first and only
complete subscription order-to-revenue solution on the market. Companies
can rapidly acquire customers across multiple channels, seamlessly
manage the entire customer lifecycle, and automate revenue recognition,
in a single solution.
-
Subscription Order Flexibility: Enables teams to book
multi-year expansion contracts upfront and make unlimited subscription
changes
-
Order Metrics System of Record: Provides out-of-the-box change
order metrics like Monthly Recurring Revenue, Churn Rate, and Net
Retention all fully visualized on a configurable dashboard
-
Order-to-Revenue Automation: Aggregates comprehensive order and
change order data required to recognize revenue
“The significant growth in TAM for cloud-based order management
solutions - from $1.07 billion in 2018 to $3.351 billion in 20221
is due to the rise of new digital business initiatives. To meet the
demands of these recurring revenue opportunities, organizations are
increasing their investment in agile cloud-based solutions for
subscription order management,” said MGI Research Managing Director
Igor Stenmark.
Beyond the office of the CFO, IT and business operations can take
advantage of the Zuora Central platform upgrade to support revenue
generating business growth.
“In order to scale our business, we’ve had to master order-to-revenue
automation and churn reporting. We are excited about the latest Zuora
Central platform upgrade, which will enable us to control business
behavior through systems, allowing sales to have the freedom to focus on
growth, while we get complete and accurate revenue and churn reporting,”
said Zoom Head of Operations Sunil Madan.
About Zuora, Inc.
Zuora provides the leading cloud-based subscription management platform
that functions as a system of record for subscription businesses across
all industries. Powering the Subscription Economy®, the Zuora platform
was architected specifically for dynamic, recurring subscription
business models and acts as an intelligent subscription management hub
that automates and orchestrates the entire subscription order-to-cash
process, including billing and revenue recognition. Zuora serves more
than 900 companies around the world, including Box, Komatsu, Rogers,
Schneider Electric, Xplornet and Zendesk. Headquartered in Silicon
Valley, Zuora also operates offices in Atlanta, Boston, Denver, San
Francisco, London, Paris, Beijing, Sydney, Chennai and Tokyo. To learn
more about the Zuora platform, please visit www.zuora.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve a
number of risks, uncertainties and assumptions, including but not
limited to statements regarding the expected benefits of Zuora Central,
Zuora’s expectations regarding companies shifting to subscription
business models, and the expected growth and trends in the market for
subscription businesses. Any statements that are not statements of
historical fact may be deemed to be forward-looking statements. Actual
results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including but not
limited to, risks detailed in the "Risk Factors" section of Zuora’s
final prospectus related to the initial public offering filed with the
Securities and Exchange Commission (SEC) on April 12, 2018, as well as
other documents that Zuora may file from time to time with the SEC. The
forward-looking statements in this press release are based on current
expectations as of the date of this press release and Zuora undertakes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. This
press release also includes market data and certain other statistical
information and estimates from industry analysts and/or market research
firms. Zuora believes these third party reports to be reputable, but has
not independently verified the underlying data sources, methodologies or
assumptions. Information that is based on estimates, forecasts,
projections, market research or similar methodologies is inherently
subject to uncertainties and actual events or circumstances may differ
materially from events and circumstances reflected in this information.
© 2018 Zuora, Inc. All Rights Reserved. Zuora, Subscribed,
Subscription Economy, Powering the Subscription Economy, and
Subscription Economy Index are trademarks or registered trademarks
of Zuora, Inc. Other names and brands may be claimed as the property of
others. Nothing in this press release should be construed to the
contrary, or as an approval, endorsement or sponsorship by any third
parties of Zuora, Inc. or any aspect of this press release.
SOURCE: Zuora Financial
1 MGI Research, Agile Monetization Platforms (AMP) - Total
Addressable Market (TAM) Forecast 2018-2022. Published December 9,
2017
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180605006064/en/
Zuora, Inc.
Jayne Scuncio, 408-348-1087
press@zuora.com
Source: Zuora, Inc.