SAN MATEO, Calif.--(BUSINESS WIRE)--
Zuora,
Inc. (NYSE: ZUO), the leading cloud-based subscription management
platform provider, today announced that its customer Worthpoint
was able to accelerate its path to becoming cash flow positive, growing
nearly 40 percent in one year, with the flexibility and reliability of
Zuora® Billing.
It’s no secret that growth rate is one of the most decisive indicators
of success for a SaaS company. According to a recent McKinsey study “Grow
Fast or Die Slow,” growth yields greater returns and matters more
than margins or cost structure. Organizations like Worthpoint, with the
goal to become multi-million dollar SaaS companies, must make difficult
decisions, weighing the cost against the value of operational
expenditures.
Since its launch in 2007, WorthPoint’s Internet of Stuff™ has been a
treasure trove for collectors to identify, research and value antiques,
art and vintage collectibles. As their digital commerce business grew to
more than 1 billion images, 500 million web pages, 400 million unique
visitors per month, and more than 15,000 paid users, its billing needs
became more complex.
An early decision on an insufficient subscription management platform
put Worthpoint’s business at risk. The company suffered from an
overallocation of refunds, unmarked bills, irreconcilable billing
periods, inconsistent revenue numbers, and a terrible user experience.
Worthpoint had to completely rebuild its customer base and relaunch the
business after the first two years.
"We knew Zuora was the best solution for us, but we chose another
company and that decision cost us dearly. The other company didn't do
what they promised, and we ended up losing 40 percent of our business in
the first month. We almost went out of business and it cost us $1
million to come back from that. It was the worst decision in the history
of WorthPoint," said Will Seippel, CEO and Founder of WorthPoint
Corporation.
Worthpoint implemented the Zuora platform to fix the damage and get back
to cash flow positive. Four years later, with Zuora as its central
system of record, Worthpoint can manage $80,000 of transaction volume
per month. Today, the $5 million business manages subscriptions,
billing, finance, and revenue accounting on the Zuora platform with a
staff of just one. The simplicity of the Zuora platform helps enables
Worthpoint to run all financial operations without delays or
dependencies on the on the IT team. With minimal staff required to bill
and collect revenue, the company can focus on strategic initiatives to
scale the business.
Neal McAtee, CFO of WorthPoint Corporation said, “It is so
fundamentally important to our business to get billing decisions right.
Zuora helped us discover that we were undercounting revenue and enabled
us to understand why cash outpaced revenue so drastically. WorthPoint
grew revenues 37.5 percent in one year -- and we were equipped to handle
this exponential growth -- with the support of Zuora.”
Worthpoint’s use of the Zuora platform helped the company achieve the
following business goals:
-
A cash flow positive business -Worthpoint was able to
increase revenue by reducing time spent on billing tasks and complex
account updates with automated workflows through the Zuora platform.
-
Operational maturity to scale with growth - Worthpoint is able
to automate complex billing processes for multiple products, high web
traffic, and add-ons. Using the flexible bill run capabilities of the
Zuora platform, the Worthpoint F&A team can apply late fees to
accounts, calculate usage by unique devices, and preview future
invoices.
-
Faster close periods - The Worthpoint executive team now has a
full view into their business and can maintain a faster time-to-close
each quarter. The Zuora platform’s metrics engine accurately computes
key financials, giving the Worthpoint CEO on-demand daily sales
summaries, billing statistics like failure rates and average revenue
per bill.
Read more about Worthpoint in the company case study here.
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 1,000 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.
© 2019 Zuora, Inc. All Rights Reserved. Zuora, Subscription Economy,
Powering the Subscription Economy 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
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190115005289/en/
Jayne Gonzalez
press@zuora.com
408-348-1087
Source: Zuora, Inc.