Shares of Zuora were active, but down overall in after-hours trading after the cloud software firm posted its second-quarter results.
For the quarter ending in July, Zuora reported total revenue of $75 million, up 8% year over year, including subscription revenue of $58.3 million, up 15%. It reported non-GAAP net loss of 0 cents per share for the quarter. Analysts were expecting revenue of $73.5 million and a non-GAAP loss of 7 cents per share.
“We reported solid results in the second quarter as we continue to help our customers thrive by providing them with the agility, insight and automation needed to navigate an uncertain economic environment,” said Zuora CEO Tien Tzuo. “The demand for subscription business models remains strong and we continue to build the foundation for Zuora to lead the market for years to come.”
Zuora , which sells software to subscription-based businesses, cited uncertain market conditions in the current quarter but issued sales guidance of between $73 million and $75 million. That came slightly below analysts' sales forecasts of $75.5 million in revenue for the third quarter.
For the full year, Wall Street is calling for revenue of $298.4 million and a non-GAAP loss of 22 cents per share.
In an interview with TheStreet in June, Tzuo said that he was seeing more interest in subscription-based business models because they afford the benefits of recurring revenue. But he also noted some disruption to the company's deal flow when the pandemic hit in April.
“I think every company is different, and I think companies are starting to normalize. And so we talked about [how] we’re seeing continued month-over-month improvements in the quality of our pipeline," Tzuo told TheStreet's Eric Jhonsa at the time.
Zuora shares are up 9% year to date.