-
Subscription revenue grew 32% year-over-year; total revenue grew
22% year-over-year
-
Customers with annual contract value (ACV) equal to or greater than
$100,000 increased to 546 customers, or 24% year-over-year
-
Dollar based retention rate was 110%
-
Fiscal 2020 total revenue guidance updated to $268 million to $278
million
SAN MATEO, Calif.--(BUSINESS WIRE)--
Zuora, Inc. (NYSE: ZUO), the leading cloud-based subscription management
platform provider, today announced financial results for its fiscal
first quarter ended April 30, 2019.
“In the first quarter, we saw 32 percent growth in subscription revenue
and an increase in customer usage of our solutions,” said Tien Tzuo,
Founder and CEO of Zuora. “We continue to be excited by the healthy
demand for subscription business models, but we are making changes to
our sales approach to scale the business to the next level, which
tempers our expectations for the remainder of the year. Our confidence
in the long term growth trajectory for the company remains unchanged.”
First Quarter Fiscal 2020 Financial Results (prior period adjusted
for ASC 606 adoption):
-
Revenue: Total revenue was $64.1 million, an increase of 22%
year-over-year. Subscription revenue was $47.3 million, an increase of
32% year-over-year.
-
Loss from Operations: GAAP loss from operations was $20.9
million, compared to a loss of $16.8 million in the first quarter of
fiscal 2019.
Non-GAAP loss from operations was $12.5
million, compared to a non-GAAP loss from operations of $11.9 million
in the first quarter of fiscal 2019.
-
Net Loss: GAAP net loss was $20.6 million, or 32% of revenue,
compared to a net loss of $17.8 million, or 34% of revenue, in the
first quarter of fiscal 2019. GAAP net loss per share attributable to
common stockholders was $0.19 based on 108.8 million weighted average
shares outstanding, compared to a GAAP net loss per share attributable
to common stockholders of $0.40 based on 44.9 million weighted average
shares outstanding in the first quarter of fiscal 2019.
Non-GAAP
net loss was $12.2 million, compared to a non-GAAP net loss of $12.8
million in the first quarter of fiscal 2019. Non-GAAP net loss per
share attributable to common stockholders was $0.11 based on 108.8
million weighted average shares outstanding, compared to a non-GAAP
net loss per share attributable to common stockholders of $0.29 based
on 44.9 million weighted average shares outstanding in the first
quarter of fiscal 2019.
-
Cash Flow: Net cash used in operating activities was $2.2
million, compared to net cash used in operating activities of $7.8
million in the first quarter of fiscal 2019. Free cash flow was
negative $3.8 million compared to negative $9.6 million in the first
quarter of fiscal 2019.
-
Cash and Cash Equivalents and Short-term Investments: Cash and
cash equivalents and short-term investments were $179.3 million as of
April 30, 2019.
A description of non-GAAP financial measures is contained in the section
titled “Explanation of Non-GAAP Financial Measures” below and a
reconciliation of GAAP and non-GAAP financial measures is contained in
the tables below.
Key Metrics and Business Highlights:
-
Customers with ACV equal to or greater than $100,000 was 546, which
represents 24% year-over-year growth.
-
Dollar-based retention rate was 110%.
-
Customer usage of Zuora solutions grew, with $9.7 billion in
transaction volume through Zuora’s billing platform during our first
quarter, an increase of 34% year-over-year.
-
Zuora announced new customers across multiple industries, including
aerial agricultural imaging specialist Terravion, sports streaming
service Kayo Sports, and workplace technology company Ricoh.
-
Zuora added five new U.S. patents in FY’19, reflecting the continuous
innovation of our technology team around our two flagship products,
Zuora® Billing and Zuora RevPro®.
-
Zuora released its first “End of Ownership” Report, a survey of over
13,000 adults, across 12 countries found that subscription services
are experiencing growth on a global scale.
-
Next week at Zuora’s annual user conference, Subscribed San Francisco,
the company will announce new product upgrades and showcase customer
speakers from Unity Technologies, Fender, NCR, Motor Trend On Demand,
NewRelic, Solium Capital and more.
-
As a part of Subscribed San Francisco, Zuora will host an Investor
Session on Wednesday, June 5, 2019. Senior management will provide an
overview of Zuora’s business, with presentations beginning at 11:15
a.m. and ending 1:30 p.m. PT. A live webcast of the event will be
accessible by visiting https://investor.zuora.com
and a replay will be made available after the event.
Financial Outlook:
Zuora adopted the new revenue recognition standard, ASC 606, effective
February 1, 2019 on a full retrospective basis. The tables below reflect
our guidance under ASC 606. For more information regarding Zuora’s
adoption of ASC 606, refer to the “Adoption of ASC 606” section below.
Zuora currently expects the following results for the second quarter and
full fiscal year 2020:
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
Fiscal 2020
|
|
Subscription revenue
|
|
$48.5M - $50.0M
|
|
|
$200.0M - $206.0M
|
|
Total revenue
|
|
$66.0M - $68.0M
|
|
|
$268.0M - $278.0M
|
|
Non-GAAP loss from operations
|
|
($15.5M) - ($14.0M)
|
|
|
($49.0M) - ($45.0M)
|
|
Non-GAAP net loss per share(1)
|
|
($0.15) - ($0.13)
|
|
|
($0.44) - ($0.40)
|
|
|
|
|
|
|
|
(1)
|
|
Non-GAAP net loss per share attributable to common stockholders was
computed assuming 109.9 million weighted average shares outstanding
for the second quarter of fiscal 2020 and 110.5 million for the full
year fiscal 2020.
|
|
|
|
These statements are forward-looking and actual results may differ
materially. Refer to the “Forward-Looking Statements” safe harbor
section below for information on the factors that could cause our actual
results to differ materially from these forward-looking statements.
Zuora has not reconciled its guidance for non-GAAP loss from operations
to GAAP loss from operations or non-GAAP net loss per share attributable
to common stockholders to GAAP net loss per share because stock-based
compensation expense cannot be reasonably calculated or predicted at
this time. Accordingly, a reconciliation is not available without
unreasonable effort.
Adoption of ASC 606:
In May 2014, the Financial Accounting Standards Board issued a new
standard related to revenue recognition from contracts with customers
("ASC 606"), which Zuora adopted effective February 1, 2019 using the
full retrospective transition method. ASC 606 supersedes the prior
revenue recognition standard ("ASC 605"). All financial information in
this release is reported based on ASC 606.
Under ASC 606, revenue recognition is better aligned with the value
delivered by our service over time. Due to the complexity of certain
customer contracts, however, the actual revenue recognition treatment
required under ASC 606 depends on contract specific terms and may result
in greater variability in revenue from period to period.
Under ASC 606, we defer all incremental commission costs to obtain
customer contracts, including indirect costs that are not tied to a
specific contract. These costs are amortized over a period of benefit
that we have determined to be five years.
We adjusted our condensed consolidated financial statements presented
herein from amounts previously reported due to the adoption of ASC 606.
In addition, we posted supplemental historical financials under ASC 606
on Zuora’s investor relations website.
Webcast and Conference Call Information:
Zuora will host a conference call for investors on May 30, 2019 at 5:00
p.m. Eastern Time to discuss the company’s financial results and
business highlights. Investors are invited to listen to a live webcast
of the conference call by visiting https://investor.zuora.com.
A replay of the webcast will be available for one year. The call can
also be accessed live via phone by dialing (866) 393-4306 or, for
international callers, (734) 385-2616 with conference ID 7879423. An
audio replay will be available shortly after the call and can be
accessed by dialing (855) 859-2056 or, for international callers, (404)
537-3406. The passcode for the replay is 7879423. The replay will be
available through June 6, 2019.
Explanation of Non-GAAP Financial Measures:
In addition to financial measures prepared in accordance with U.S.
generally accepted accounting principles (GAAP), this press release and
the accompanying tables contain non-GAAP financial measures, including
non-GAAP cost of subscription revenue, non-GAAP cost of professional
services revenue, non-GAAP gross profit, non-GAAP subscription gross
margin, non-GAAP total gross margin, non-GAAP sales and marketing
expense, non-GAAP research and development expense, non-GAAP general and
administrative expense, non-GAAP loss from operations, non-GAAP net
loss, non-GAAP net loss per share attributable to common stockholders,
and free cash flow. The presentation of these financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in accordance
with GAAP.
We use these non-GAAP measures in conjunction with GAAP measures as part
of our overall assessment of our performance, including the preparation
of our annual operating budget and quarterly forecasts, to evaluate the
effectiveness of our business strategies and to communicate with our
board of directors concerning our financial performance. We believe
these non-GAAP measures provide investors consistency and comparability
with our past financial performance and facilitate period-to-period
comparisons of our operating results. We believe these non-GAAP measures
are useful in evaluating our operating performance compared to that of
other companies in our industry, as they generally eliminate the effects
of certain items that may vary for different companies for reasons
unrelated to overall operating performance.
We exclude the following items from one or more of our non-GAAP
financial measures:
Stock-based compensation expense. We exclude stock-based
compensation expense, which is a non-cash expense, from certain of our
non-GAAP financial measures because we believe that excluding this item
provides meaningful supplemental information regarding operational
performance. In particular, stock-based compensation expense is not
comparable across companies given it is calculated using a variety of
valuation methodologies and subjective assumptions.
Amortization of acquired intangible assets. We exclude
amortization of acquired intangible assets, which is a non-cash expense,
from certain of our non-GAAP financial measures. We exclude these
amortization expenses because we do not believe these expenses have a
direct correlation to the operation of our business.
Internal-use software. We exclude capitalization and the
subsequent amortization of internal-use software, which is a non-cash
expense, from certain of our non-GAAP financial measures. We capitalize
certain costs incurred for the development of computer software for
internal use and then amortize those costs over the estimated useful
life. Capitalization and amortization of software development costs can
vary significantly depending on the timing of products reaching
technological feasibility and being made generally available. Moreover,
because of the variety of approaches taken and the subjective
assumptions made by other companies in this area, we believe that
excluding the effects of capitalized software costs allows investors to
make more meaningful comparisons between our operating results and those
of other companies.
Additionally, Zuora’s management believes that the free cash flow
non-GAAP measure is meaningful to investors because management reviews
cash flows generated from operations after taking into consideration
capital expenditures as these expenditures are considered to be a
necessary component of ongoing operations.
Investors are cautioned that there are material limitations associated
with the use of non-GAAP financial measures as an analytical tool. The
non-GAAP measures we use may be different from non-GAAP financial
measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by providing
specific information regarding the GAAP items excluded from these
non-GAAP financial measures.
Operating Metrics
Annual Contract Value (ACV). We define ACV as the subscription
revenue we would contractually expect to recognize from a customer over
the next twelve months, assuming no increases or reductions in their
subscriptions.
Dollar-based Retention Rate. We calculate our dollar-based
retention rate as of a period end by starting with the sum of the ACV
from all customers as of twelve months prior to such period end, or
prior period ACV. We then calculate the sum of the ACV from these same
customers as of the current period end, or current period ACV. Current
period ACV includes any upsells and also reflects contraction or
attrition over the trailing twelve months but excludes revenue from new
customers added in the current period. We then divide the current period
ACV by the prior period ACV to arrive at our dollar-based retention rate.
Forward-Looking Statements
This press release contains “forward-looking statements” that involve a
number of risks and uncertainties, including but not limited to,
statements regarding our GAAP and non-GAAP guidance for the second
fiscal quarter and full fiscal 2020 and financial outlook and market
positioning. Words such as “believes,” “may,” “will,” “estimates,”
“potential,” “continues,” “anticipates,” “intends,” “expects,” “could,”
“would,” “projects,” “plans,” “targets,” and variations of such words
and similar expressions are intended to identify forward-looking
statements. Forward-looking statements are based on management's
expectations as of the date of this filing and are subject to a number
of risks, uncertainties and assumptions, many of which involve factors
or circumstances that are beyond our control. Our 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 our Form 10-K filed with the Securities and Exchange
Commission on April 18, 2019 as well as other documents that may be
filed by us from time to time with the Securities and Exchange
Commission. In particular, the following factors, among others, could
cause results to differ materially from those expressed or implied by
such forward-looking statements: we have a history of net losses and may
not achieve or sustain profitability; the shift by companies to
subscription business models may develop slower than we expect; we may
not able to sustain or manage any future growth effectively; our
security measures may be breached or our products may be perceived as
not being secure; our products may fail to gain, or lose, market
acceptance; we may be unable to attract new customers and expand sales
to existing customers; customers may fail to deploy our solution after
entering into a subscription agreement with us; customers may
incorrectly or improperly deploy or use of our solution; we may not be
able to develop and release new products and services; we may experience
interruptions or performance problems, including a service outage,
associated with our technology; we face intense competition in our
markets and may not be able to compete effectively; weakened global
economic conditions may adversely affect our industry; the risk of loss
of key employees; changes in foreign exchange rates; general political
or destabilizing events, including war, conflict or acts of terrorism;
and other risks and uncertainties. Past performance is not necessarily
indicative of future results. The forward-looking statements included in
this press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments will
cause our views to change. We undertake no intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. These forward-looking
statements should not be relied upon as representing our views as of any
date subsequent to the date of this press release.
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 the Silicon
Valley, Zuora also operates offices around the world in the U.S., EMEA
and APAC. To learn more about the Zuora platform, please visit www.zuora.com.
© 2019 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.
SOURCE: Zuora Financial
|
|
|
ZUORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
Three Months Ended
April 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
As Adjusted¹
|
|
Revenue:
|
|
|
|
|
|
Subscription
|
|
$
|
47,311
|
|
|
$
|
35,889
|
|
|
Professional services
|
|
16,798
|
|
|
16,559
|
|
|
Total revenue
|
|
64,109
|
|
|
52,448
|
|
|
Cost of revenue:
|
|
|
|
|
|
Subscription
|
|
11,933
|
|
|
9,865
|
|
|
Professional services
|
|
20,098
|
|
|
16,153
|
|
|
Total cost of revenue
|
|
32,031
|
|
|
26,018
|
|
|
Gross profit
|
|
32,078
|
|
|
26,430
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
17,015
|
|
|
12,062
|
|
|
Sales and marketing
|
|
25,501
|
|
|
21,780
|
|
|
General and administrative
|
|
10,445
|
|
|
9,411
|
|
|
Total operating expenses
|
|
52,961
|
|
|
43,253
|
|
|
Loss from operations
|
|
(20,883
|
)
|
|
(16,823
|
)
|
|
Interest and other income (expense), net
|
|
535
|
|
|
(673
|
)
|
|
Loss before income taxes
|
|
(20,348
|
)
|
|
(17,496
|
)
|
|
Income tax provision
|
|
(244
|
)
|
|
(293
|
)
|
|
Net loss
|
|
(20,592
|
)
|
|
(17,789
|
)
|
|
Comprehensive loss:
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
(75
|
)
|
|
(78
|
)
|
|
Unrealized gain on available-for-sale securities
|
|
24
|
|
|
—
|
|
|
Comprehensive loss
|
|
$
|
(20,643
|
)
|
|
$
|
(17,867
|
)
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
$
|
(0.19
|
)
|
|
$
|
(0.40
|
)
|
|
Weighted-average shares outstanding used in calculating net loss per
share attributable to common stockholders, basic and diluted
|
|
108,821
|
|
|
44,886
|
|
|
|
|
|
|
|
|
|
(1)
|
The condensed consolidated statement of comprehensive loss for the
prior period presented above has been adjusted to reflect the
adoption of ASC 606.
|
|
|
|
|
|
ZUORA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
|
|
|
|
|
April 30,
2019
|
|
January 31,
2019
|
|
|
|
|
As Adjusted¹
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
62,608
|
|
|
$
|
67,940
|
|
|
Short-term investments
|
|
116,698
|
|
|
107,908
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$2,716 and $2,522 as of April 30, 2019 and January 31, 2019,
respectively
|
|
52,461
|
|
|
58,258
|
|
|
Restricted cash, current portion
|
|
—
|
|
|
400
|
|
|
Deferred commissions, current portion
|
|
8,674
|
|
|
8,616
|
|
|
Prepaid expenses and other current assets
|
|
15,734
|
|
|
14,632
|
|
|
Total current assets
|
|
256,175
|
|
|
257,754
|
|
|
Property and equipment, net
|
|
19,575
|
|
|
19,625
|
|
|
Restricted cash, net of current portion
|
|
—
|
|
|
1,684
|
|
|
Purchased intangibles, net
|
|
6,892
|
|
|
7,396
|
|
|
Deferred commissions, net of current portion
|
|
18,224
|
|
|
18,664
|
|
|
Goodwill
|
|
17,632
|
|
|
17,632
|
|
|
Other assets
|
|
4,731
|
|
|
3,292
|
|
|
Total assets
|
|
$
|
323,229
|
|
|
$
|
326,047
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,622
|
|
|
$
|
1,512
|
|
|
Accrued expenses and other current liabilities
|
|
13,978
|
|
|
14,210
|
|
|
Accrued employee liabilities
|
|
26,241
|
|
|
22,603
|
|
|
Debt, current portion
|
|
4,074
|
|
|
2,963
|
|
|
Deferred revenue, current portion
|
|
88,299
|
|
|
86,784
|
|
|
Total current liabilities
|
|
134,214
|
|
|
128,072
|
|
|
Debt, net of current portion
|
|
9,393
|
|
|
10,494
|
|
|
Deferred revenue, net of current portion
|
|
74
|
|
|
112
|
|
|
Other long-term liabilities
|
|
5,329
|
|
|
5,555
|
|
|
Total liabilities
|
|
149,010
|
|
|
144,233
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
Class A common stock
|
|
8
|
|
|
8
|
|
|
Class B common stock
|
|
3
|
|
|
3
|
|
|
Additional paid-in capital
|
|
501,824
|
|
|
488,776
|
|
|
Accumulated other comprehensive income
|
|
430
|
|
|
481
|
|
|
Accumulated deficit
|
|
(328,046
|
)
|
|
(307,454
|
)
|
|
Total stockholders’ equity
|
|
174,219
|
|
|
181,814
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
323,229
|
|
|
$
|
326,047
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The condensed consolidated balance sheet for the prior period
presented above has been adjusted to reflect the adoption of ASC 606.
|
|
|
|
|
|
ZUORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|
|
|
|
Three Months Ended April 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
As Adjusted¹
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(20,592
|
)
|
|
$
|
(17,789
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
2,508
|
|
|
1,953
|
|
|
Stock-based compensation
|
|
7,959
|
|
|
4,601
|
|
|
Provision for doubtful accounts
|
|
1,344
|
|
|
1,195
|
|
|
Amortization of deferred commissions
|
|
2,306
|
|
|
1,817
|
|
|
Other
|
|
(511
|
)
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
4,453
|
|
|
3,181
|
|
|
Prepaid expenses and other current assets
|
|
(1,037
|
)
|
|
(2,113
|
)
|
|
Deferred commissions
|
|
(1,924
|
)
|
|
(2,874
|
)
|
|
Other assets
|
|
(1,440
|
)
|
|
(1,995
|
)
|
|
Accounts payable
|
|
4
|
|
|
1,030
|
|
|
Accrued expenses and other current liabilities
|
|
909
|
|
|
1,936
|
|
|
Accrued employee liabilities
|
|
3,638
|
|
|
(318
|
)
|
|
Deferred revenue
|
|
1,477
|
|
|
1,102
|
|
|
Other long-term liabilities
|
|
(1,256
|
)
|
|
448
|
|
|
Net cash used in operating activities
|
|
(2,162
|
)
|
|
(7,826
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(1,676
|
)
|
|
(1,764
|
)
|
|
Purchases of short-term investments
|
|
(67,705
|
)
|
|
—
|
|
|
Sales of short-term investments
|
|
3,496
|
|
|
—
|
|
|
Maturities of short-term investments
|
|
55,900
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
(9,985
|
)
|
|
(1,764
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Payments under capital leases
|
|
—
|
|
|
(236
|
)
|
|
Proceeds from issuance of common stock upon exercise of stock options
|
|
4,846
|
|
|
5,749
|
|
|
Payments of offering costs
|
|
—
|
|
|
(1,892
|
)
|
|
Proceeds from initial public offering, net of underwriters’
discounts and commissions
|
|
—
|
|
|
164,703
|
|
|
Payments under related party notes receivable
|
|
—
|
|
|
(4,344
|
)
|
|
Repurchases of unvested common stock
|
|
(40
|
)
|
|
(6
|
)
|
|
Net cash provided by financing activities
|
|
4,806
|
|
|
163,974
|
|
|
Effect of exchange rates on cash and cash equivalents and restricted
cash
|
|
(75
|
)
|
|
(78
|
)
|
|
Net (decrease) increase in cash and cash equivalents and restricted
cash
|
|
(7,416
|
)
|
|
154,306
|
|
|
Cash and cash equivalents and restricted cash, beginning of period
|
|
70,024
|
|
|
53,363
|
|
|
Cash and cash equivalents and restricted cash, end of period
|
|
$
|
62,608
|
|
|
$
|
207,669
|
|
|
Supplemental disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
Lapse in restrictions on early exercised common stock options
|
|
$
|
205
|
|
|
$
|
833
|
|
|
Property and equipment purchases accrued or in accounts payable
|
|
$
|
288
|
|
|
$
|
35
|
|
|
Deferred offering costs payable or accrued but not paid
|
|
$
|
—
|
|
|
$
|
2,181
|
|
|
Reconciliation of cash and cash equivalents and restricted cash
within the unaudited condensed consolidated balance sheets to the
amounts shown in the unaudited condensed consolidated statements
of cash flows above:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
62,608
|
|
|
$
|
202,514
|
|
|
Restricted cash, current
|
|
—
|
|
|
220
|
|
|
Restricted cash, net of current portion
|
|
—
|
|
|
4,935
|
|
|
Total cash and cash equivalents and restricted cash
|
|
$
|
62,608
|
|
|
$
|
207,669
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The condensed consolidated statement of cash flows for the prior
period presented above has been adjusted to reflect the adoption of
ASC 606.
|
|
|
|
|
|
ZUORA, INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except percentages and per share data)
(unaudited)
|
|
|
|
|
Three Months Ended April 30, 2019
|
|
|
GAAP
|
|
Stock-based
Compensation
|
|
Amortization
of Acquired
Intangibles
|
|
Internal-use
Software
|
|
Non-GAAP
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
$
|
11,933
|
|
|
$
|
(493
|
)
|
|
$
|
(503
|
)
|
|
$
|
(354
|
)
|
|
$
|
10,583
|
|
|
Cost of professional services revenue
|
|
20,098
|
|
|
(1,359
|
)
|
|
—
|
|
|
—
|
|
|
18,739
|
|
|
Gross profit
|
|
32,078
|
|
|
1,852
|
|
|
503
|
|
|
354
|
|
|
34,787
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
17,015
|
|
|
(3,191
|
)
|
|
—
|
|
|
425
|
|
|
14,249
|
|
|
Sales and marketing
|
|
25,501
|
|
|
(1,852
|
)
|
|
—
|
|
|
—
|
|
|
23,649
|
|
|
General and administrative
|
|
10,445
|
|
|
(1,064
|
)
|
|
—
|
|
|
—
|
|
|
9,381
|
|
|
Operating loss
|
|
(20,883
|
)
|
|
7,959
|
|
|
503
|
|
|
(71
|
)
|
|
(12,492
|
)
|
|
Net loss
|
|
$
|
(20,592
|
)
|
|
$
|
7,959
|
|
|
$
|
503
|
|
|
$
|
(71
|
)
|
|
$
|
(12,201
|
)
|
|
Net loss per share attributable to common stockholders, basic and
diluted(1)
|
|
$
|
(0.19
|
)
|
|
|
|
|
|
|
|
$
|
(0.11
|
)
|
|
Gross margin
|
|
50
|
%
|
|
|
|
|
|
|
|
54
|
%
|
|
Subscription gross margin
|
|
75
|
%
|
|
|
|
|
|
|
|
78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2018
|
|
|
GAAP²
|
|
Stock-based
Compensation
|
|
Amortization
of Acquired
Intangibles
|
|
Internal-use
Software
|
|
Non-GAAP²
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
$
|
9,865
|
|
|
$
|
(323
|
)
|
|
$
|
(682
|
)
|
|
$
|
(251
|
)
|
|
$
|
8,609
|
|
|
Cost of professional services revenue
|
|
16,153
|
|
|
(1,031
|
)
|
|
—
|
|
|
—
|
|
|
15,122
|
|
|
Gross profit
|
|
26,430
|
|
|
1,354
|
|
|
682
|
|
|
251
|
|
|
28,717
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
12,062
|
|
|
(1,048
|
)
|
|
—
|
|
|
594
|
|
|
11,608
|
|
|
Sales and marketing
|
|
21,780
|
|
|
(1,590
|
)
|
|
—
|
|
|
—
|
|
|
20,190
|
|
|
General and administrative
|
|
9,411
|
|
|
(609
|
)
|
|
—
|
|
|
—
|
|
|
8,802
|
|
|
Operating loss
|
|
(16,823
|
)
|
|
4,601
|
|
|
682
|
|
|
(343
|
)
|
|
(11,883
|
)
|
|
Net loss
|
|
$
|
(17,789
|
)
|
|
$
|
4,601
|
|
|
$
|
682
|
|
|
$
|
(343
|
)
|
|
$
|
(12,849
|
)
|
|
Net loss per share attributable to common stockholders, basic and
diluted(1)
|
|
$
|
(0.40
|
)
|
|
|
|
|
|
|
|
$
|
(0.29
|
)
|
|
Gross margin
|
|
50
|
%
|
|
|
|
|
|
|
|
55
|
%
|
|
Subscription gross margin
|
|
73
|
%
|
|
|
|
|
|
|
|
76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
GAAP and Non-GAAP net loss per share attributable to common
stockholders are calculated based upon 108,821 and 44,886 basic and
diluted weighted-average shares of common stock, respectively, for
the three months ended April 30, 2019 and 2018.
|
|
(2)
|
|
Financial information for prior period presented above has been
adjusted to reflect the adoption of ASC 606.
|
|
|
|
|
|
|
Sales and Marketing Expense
|
|
|
|
|
GAAP¹
|
|
Stock-based
Compensation
|
|
Non-GAAP¹
|
|
Twelve months ended April 30, 2019
|
|
$
|
98,890
|
|
|
$
|
(7,646
|
)
|
|
$
|
91,244
|
|
Twelve months ended January 31, 2019
|
|
95,169
|
|
|
(7,384
|
)
|
|
87,785
|
|
Twelve months ended April 30, 2018
|
|
75,230
|
|
|
(3,901
|
)
|
|
71,329
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Financial information for prior periods presented above have been
adjusted to reflect the adoption of ASC 606.
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
Three Months Ended
April 30,
|
|
|
2019
|
|
2018
|
|
Net cash used in operating activities
|
|
$
|
(2,162
|
)
|
|
$
|
(7,826
|
)
|
|
Less:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(1,676
|
)
|
|
(1,764
|
)
|
|
Free cash flow
|
|
$
|
(3,838
|
)
|
|
$
|
(9,590
|
)
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190530005840/en/
Investor Relations Contact:
Joon Huh
investorrelations@zuora.com
650-419-1377
Media Relations Contact:
Jayne Gonzalez
press@zuora.com
408-348-1087
Source: Zuora, Inc.