The consensus price target hints at a 33.9% upside potential for Zuora (ZUO). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Zuora shares are down slightly this year given the company's modest outlook for growth. Margins have improved substantially as management has worked towards right-sizing the company's cost structure. Recent acquisitions should enhance the company's ability to cross-sell products into its large existing client base.
Zuora's stock has underperformed despite a strong market, but its low valuation and profit expansion make it a prudent investment opportunity. The company raised its full-year revenue outlook and significantly boosted its profit outlook, despite lowering ARR growth expectations due to expected macro softness. Zuora's unique subscription-focused solutions, expanding profitability, and potential as an acquisition target bolster its long-term investment appeal.
Zuora (ZUO) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
The consensus price target hints at a 33.1% upside potential for Zuora (ZUO). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Zuora (NYSE: ZUO ) just reported results for the second quarter of 2025. Zuora reported earnings per share of 19 cents.
Zuora, Inc. (NYSE:ZUO ) Q2 2025 Earnings Conference Call August 21, 2024 5:00 PM ET Company Participants Luana Wolk - Head of Investor Relations Tien Tzuo - Chairman, Founder and Chief Executive Officer Todd McElhatton - Chief Finance Officer Robert Traube - President and Chief Revenue Officer Conference Call Participants Adam Hotchkiss - Goldman Sachs Jeff Van Rhee - Craig-Hallum Joshua Reilly - Needham & Company Rob Oliver - Baird Jacob Stephan - Lake Street Luv Sodha - Jefferies Joseph Vafi - Canaccord Genuity Operator Good afternoon and welcome to Zuora's Second Quarter of Fiscal 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
Zuora (ZUO) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.07 per share a year ago.
Positive long-term growth outlook for ZUO due to increasing adoption of the subscription model in businesses. Evidence of demand traction with sustained dollar-based net revenue retention rate above 100%. Target price of $14 based on updated DCF model, recommending a buy rating for ZUO despite macro headwinds.
Zuora's stock has risen nearly 20% this year as more investors unpack its value. ZUO is a cheap small/mid-cap enterprise software company with few direct competitors in its niche market. The company's Q1 earnings exceeded expectations, with strong growth in subscription revenue and improved net revenue retention rates.
Zuora, Inc. (NYSE:ZUO ) Q1 2025 Earnings Conference Call May 22, 2024 5:00 PM ET Company Participants Luana Wolk - VP, IR and ESG Tien Tzuo - Founder and CEO Todd McElhatton - CFO Robert Traube - President and Chief Revenue Officer Conference Call Participants Joshua Reilly - Needham Adam Hotchkiss - Goldman Sachs Joseph Vafi - Canaccord Luv Sodha - Jefferies Jacob Stephan - Lake Street Operator Thank you for standing by. My name is Pam and I will be your conference operator today.