Zuora stock surges 8% on strong earnings beat and raised guidance

REDWOOD CITY, Calif. - Zuora, Inc. (NYSE:ZUO ) saw its stock jump 8.8% in after-hours trading on Wednesday after the subscription management software company reported better-than-expected second quarter results and raised its full-year outlook.

The company posted adjusted earnings per share of $0.19 for the quarter ended July 31, significantly beating the analyst consensus estimate of $0.10. Revenue came in at $115.4 million, topping expectations of $112.62 million and growing 7% YoY.

Zuora's subscription revenue, which makes up the bulk of its top line, increased 9% YoY to $104.1 million. The company also reported strong improvements in profitability, with non-GAAP operating margin expanding to 22% from 9% in the year-ago quarter.

"I'm proud of our ZEOs for delivering a solid second quarter," said Tien Tzuo, Founder and CEO of Zuora. "From our install base to the analyst community, we continue to be recognized for our market leadership."

Looking ahead, Zuora raised its full-year fiscal 2025 guidance, now expecting adjusted EPS of $0.56-$0.58 on revenue of $455.5-461.5 million. Both ranges came in above Wall Street forecasts.

For the current third quarter, the company projects adjusted EPS of $0.11-$0.12 on revenue of $115-117 million, also ahead of analyst estimates.

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Source: Investing.com