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Zuora Zooms Higher Following Q1 Earnings Beat

Zuora shares rose sharply after the company handily topped estimates.
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Shares of cloud-based subscription platform Zuora  (ZUO) - Get Free Report were rising after hours Wednesday after the company reported fiscal first quarter results that topped estimates. 

Zuora shares jumped 14% after hours Wednesday.

The Redwood City-based firm reported a first quarter net loss of 6 cents per share, after reporting a loss of 11 cents last year, on revenue that rose 15% year over year to $73.9 million.

Analysts were expecting the company to report a loss of 10 cents a share on revenue of $70.93 million. 

"There has never been a time when the importance of what we do for our customers is more apparent," said CEO Tien Tzuo. "We had another healthy quarter of growth despite the challenges arising from the pandemic. Moments like these truly highlight the resilience of having a subscription revenue business, both for us and for our customers."

The company did withdraw its previously issued full-year guidance due to the uncertainty surrounding the coronavirus, but for the second quarter, the company expects revenue between $72.5 million and $75 million with a net loss between 7 cents and 8 cents per share. 

Wall Street expects the company to report revenue of $74.53 million with a net loss of 8 cents per share. 

The company reported that the number of customers with an annual contract value of over $100,000 grew 18% year over year to 643, while customer usage grew 27% year over year with $12.3 billion in transaction volume through Zuora's billing platform. 

The company reported positive cash flow of $3 million with operating expenses of $2.2 million in the quarter.