Zuora (ZUO) - Get Report , the cloud-based subscription billing and management company, slumped Friday after the company's revenue forecast for its fiscal first quarter and full year disappointed Wall Street.
Using older accounting rules, on which Zuora said Wall Street was basing its estimates, the company said it expects first-quarter revenue of $65 million to $66 million, and fiscal-year revenue of $293 million to $297.5 million. Wall Street was expecting revenue for the first quarter and year of $66 million and $294.2 million, respectively.
The company said it anticipates a loss in the first quarter of 12 cents to 13 cents a share, and a loss of 40 cents to 44 cents a share for the year. Both estimates were roughly in line with forecasts.
Zuora posted on Thursday a fourth-quarter adjusted loss of 11 cents a share, matching expectations, on revenue of $64.1 million, which topped forecasts of $62.8 million.
Subscription revenue in the quarter rose 35% to $46.7 million.
"We had a strong fourth quarter and a fantastic finish to our first year as a public company," said Zuora CEO Tien Tzuo. "With more than $10 billion processed through our system, it is clear that more and more companies across multiple industries joined the global subscription economy, and Zuora is increasingly strategic to their long-term success."
Shares of Zuora fell 6% on Friday to $22.86.
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