=Zuora (ZUO) reported earnings on Thur 21 March 2019 (a/h)

Zuora reports EPS in-line, beats on revs; guides Q1 and FY20 rev in-line under ASC 605, below estimates under ASC 606

• Reports Q4 (Jan) loss of $0.11 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of ($0.11); revenues rose 28.7% year/year to $64.1 mln vs the $63 mln S&P Capital IQ Consensus. Subscription revenue was $46.7 million, an increase of 35% year-over-year. Customers with ACV equal to or greater than $100,000 was 526, which represents 27% year-over-year growth. Dollar-based retention rate was 112%, compared to 110% in the prior year.
• Co issues guidance for Q1 and FY20 under ASC 605 and ASC 606; revenue guidance was in-line under 605 and below estimates under 606; estimates were likely still in ASC 605 but the company has adopted ASC 606 going forward; the revenue guidance appears disappointing either way.
  • Sees Q1 EPS of ($0.13-0.12), excluding non-recurring items, vs. ($0.12) S&P Capital IQ Consensus; sees Q1 revs of $65-66 mln ($63.5-64.5 mln under ASC 606), may not be comparable to $65.36 mln S&P Capital IQ Consensus.
  • Sees FY20 EPS of ($0.40-0.44), excluding non-recurring items, vs. ($0.45) S&P Capital IQ Consensus; sees FY20 revs of $293-297.5 mln ($289.293.5 mln under ASC 606), may not be comparable to $295.25 mln S&P Capital IQ Consensus.