Zuora, Inc. (ZUO) Issues Financial Targets for Fiscal Year 2025
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Zuora, Inc., (NYSE: ZUO) the leading subscription management platform provider, held a virtual Investor Day today, at which Zuora’s senior leadership and customers and a system integrator partner gave presentations. The company provided an overview of its financial and strategic plans and disclosed new financial targets and key performance indicators (KPIs) for its fiscal year 2025 (ending January 31, 2025).
Zuora’s Investor Day consisted of presentations from Zuora’s senior leadership team, including:
- Tien Tzuo, Founder & Chief Executive Officer
- Sri Srinivasan, Chief Product & Engineering Officer
- Robbie Traube, Chief Revenue Officer
- Todd McElhatton, Chief Financial Officer
The event also included interviews with Zuora’s customers and an SI partner, including:
- Jug Bath, CTO of Chegg Learning Services
- Velchamy Sankarlingam, President of Product and Engineering at Zoom Video Communications
- Matt Candy, Global Managing Partner at IBM
Zuora also set financial targets for fiscal year 2025, including:
- Subscription revenue growth of 25% or more
- Professional services revenue (as a percent of total revenue) of less than 15%
- Non-GAAP subscription gross margin of 82% or more
- Non-GAAP operating margin of 10% or more
- Free cash flow margin of 10% to 15%
Zuora also introduced three new KPIs to monitor its progress with the objective of meeting these targets by the end of fiscal year 2025:
- Annual recurring revenue (“ARR”) growth of 25% to 30%
- Net Dollar Retention (as defined by current period ARR compared to prior year’s
ARR from existing customers) of 112% to 115%
- “Rule of 40” (as defined by the sum of subscription revenue growth rate plus free cash flow margin year-over-year) of 40% or more
A replay of the webcast of the Investor Day event is available in the Investor Relations section of Zuora’s website at https://investor.zuora.com/events-and-presentations/default.aspx. This replay will be available through April 12, 2022.
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