==Zuora (ZUO) to be acquired by Silver Lake and GIC for $1.7 billion

(Reuters) - Billing software firm Zuora said on Thursday it has agreed to be acquired by buyout firm Silver Lake and Singaporean wealth fund GIC in a deal valued at $1.7 billion.

Silver Lake and GIC will acquire all outstanding shares of Zuora's common stock at $10 apiece in cash, which represents a premium of 6.2% to its last close.

The offer price is an 18% premium to the closing price on April 16, the last trading day before Reuters first reported Zuora was exploring options after it had received acquisition interest from potential suitors.

Zuora will become a privately held company after the transaction is closed, which is expected in the first quarter of 2025, it said.

The company, founded in 2007, offers billing software and other subscription management tools to enterprise customers, which include cloud computing firm Nutanix and Siemens Healthineers.

Zuora founder and CEO Tien Tzuo will continue to lead the company, which will maintain its headquarters in Redwood City.

Qatalyst Partners is serving as financial adviser to the company's special committee consisting of independent directors of the board and Foros is serving as Zuora's financial adviser.

Zuora had said earlier this year it planned to lay off about 8% of its workforce as part of a broader company-wide cost-cutting drive.

 

About Silver Lake

Silver Lake is a global technology investment firm, with more than $104 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio companies collectively generate nearly $243 billion of revenue annually and employ approximately 453,000 people globally.

About GIC

GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, GIC takes a long-term, disciplined approach to investing and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. Its long-term approach, multi-asset capabilities, and global connectivity enable it to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 2,300 people in 11 key financial cities and has investments in over 40 countries. For more information, please visit www.gic.com.sg.

===Zuora (ZUO) reported earnings on Wed 22 May 24 (a/h)

 

Zuora beats by $0.04, reports revs in-line; guides Q2 EPS in-line, revs in-line; guides FY25 EPS in-line, reaffirms FY25 revs guidance

• Reports Q1 (Apr) earnings of $0.11 per share, excluding non-recurring items, $0.04 better than the FactSet Consensus of $0.07; revenues rose 6.5% year/year to $109.77 mln vs the $108.82 mln FactSet Consensus.
  • Customers with annual contract value (ACV) equal to or greater than $250,000 were 451, up from 436 as of April 30, 2023.
    
  • Dollar-based retention rate (DBRR) was 104%, compared to 108% as of April 30, 2023.
    
  • Annual Recurring Revenue (ARR) was $404.4 million compared to $373.9 million as of April 30, 2023, representing ARR growth of 8%.
• Co issues in-line guidance for Q2 (Jul), sees EPS of $0.09-0.10, excluding non-recurring items, vs. $0.09 FactSet Consensus; sees Q2 revs of $111.5-113.5 mln vs. $112.34 mln FactSet Consensus.
• Co issues guidance for FY25 (Jan), sees EPS of $0.41-0.43 (up from $0.40-0.42), excluding non-recurring items, vs. $0.41 FactSet Consensus; sees FY25 revs of $451-459 mln vs. $454.95 mln FactSet Consensus.

===Zuora (ZUO) reported earnings on Tue 6 Dec 22 (a/h)

 

Zuora beats by $0.04, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus; to cut 11% of workforce

• Reports Q3 (Oct) loss of $0.02 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of ($0.06); revenues rose 13.3% year/year to $101.1 mln vs the $100.21 mln S&P Capital IQ Consensus.
• "We posted third quarter total revenue at the high end of our outlook, and we exceeded guidance for subscription revenue and non-GAAP operating income despite the economic environment, which has changed over the past 90 days. The macroeconomic dynamic has led us to make the difficult decision to reduce our workforce by 11% to align our expenses to our near-term growth profile and improve profitability in the near-term," said Todd McElhatton, Chief Financial Officer at Zuora. 
• Co issues downside guidance for Q4, sees EPS of ($0.07)-($0.06), excluding non-recurring items, vs. ($0.04) S&P Capital IQ Consensus; sees Q4 revs of $99.5-101.5 mln vs. $103.12 mln S&P Capital IQ Consensus.
• Co issues guidance for FY23, sees EPS of ($0.16)-($0.15), excluding non-recurring items, vs. ($0.16) S&P Capital IQ Consensus; sees FY23 revs of $392.5-394.5 mln vs. $394.77 mln S&P Capital IQ Consensus.
• Sees FY24 subscription revenue growth between 11-14%.

Earnings this week : Dec 5 - 9, 22 (wk 49)

Monday (Dec 5)

• Morning:  SAIC
• Afternoon: GTLB   SUMO

Tuesday (Dec 6)

• Morning: AZO CONN BASE SIG
• Afternoon:  AVAV CASY PLAY GWRE MDB S SWBI CXM SFIX TOL ZUO

Wednesday (Dec 7)

• Morning:  ASO BF.B  CPB LOVE OLLI THO UNFI
• Afternoon:  AI DSGX GME GEF HCP OXM SPWH VRNT

Thursday (Dec 8)

• Morning: CIEN GMS MOMO KFY MANU
• Afternoon:  AVGO CHWY COO COST DOCU DOMO LULU PHR RH CURV MTN

Friday (Dec 9)  

• Morning:  LI

 

Zuora (ZUO) reported earnings on Wed 2 Sept 20 (a/h)

 ** charts before earnings **

 

** charts after earnings **

 

** 6 weeks later **

Zuora beats by $0.07, beats on revs; guides OctQ EPS in-line, revs below consensus

Reports Q2 (Jul) net of breakeven, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of ($0.07); revenues rose 7.5% year/year to $74.99 mln vs the $73.47 mln S&P Capital IQ Consensus.

Co issues guidance for Q3 (Oct), sees EPS of $(0.05)-(0.04), excluding non-recurring items, vs. ($0.05) S&P Capital IQ Consensus; sees Q3 revs of $73-75 mln vs. $75.55 mln S&P Capital IQ Consensus.

Earnings this week : August 31 - September 4, 20 (wk 36)

Monday (Aug 31)

• Morning: CTLT
• Afternoon: SCSC ZM

Tuesday (Sept 1)

• Morning: WSG
• Afternoon: HOME CAL HRB SCVL

Wednesday (Sept 2)

• Morning: BF.B GSX GES M VRA
• Afternoon: AMBA CLDR CPRT CRWD FIVE GWRE MDB PD PVH SAIC SMAR SPWH ZUO

Thursday (Sept 3)

• Morning: CPB CIEN CONN DBI DCI GCO GMS JW.A KFY MEI MIK MOMO PDCO SIG TTC
• Afternoon: AVGO COO DOCU DOMO MDLA OXM NX SWBI YEXT

Friday (Sept 4) 

• None

Earnings spotlight:

• Zoom Video (NASDAQ:ZM) on August 31; 
• At Home Group (NYSE:HOME) and H&R Block (NYSE:HRB) on September 1; 
• Macy's (NYSE:M), Navistar (NYSE:NAV), Five Below (NASDAQ:FIVE), Crowdstrike (NASDAQ:CRWD) and Science Applications (NYSE:SAIC) on September 2; 
• Momo (NASDAQ:MOMO), Campbell Soup (NYSE:CPB), Docusign (NASDAQ:DOCU) and Broadcom (NASDAQ:AVGO) on September 3.

=Zuora (ZUO) reported earnings on Thur 30 May 19 (a/h)

Zuora beats by $0.02, reports revs in-line; guides Q2 EPS, revs below consensus; reaffirms FY20 EPS guidance, lowers FY20 revs outlook 

• Reports Q1 (Apr) loss of $0.11 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of ($0.13); revenues rose 22.2% year/year to $64.11 mln vs the $64.13 mln S&P Capital IQ Consensus.
• Co issues downside guidance for Q2, sees EPS of ($0.15-0.13), excluding non-recurring items, vs. ($0.11) S&P Capital IQ Consensus; sees Q2 revs of $66-68 mln vs. $71.24 mln S&P Capital IQ Consensus.
• Co updates guidance for FY20, continues to see EPS of ($0.44-0.40), excluding non-recurring items, vs. ($0.42) S&P Capital IQ Consensus; sees FY20 revs of $268-278 mln (Prior $289-293.5 mln) vs. $291.22 mln S&P Capital IQ Consensus.
• "We continue to be excited by the healthy demand for subscription business models, but we are making changes to our sales approach to scale the business to the next level, which tempers our expectations for the remainder of the year. Our confidence in the long term growth trajectory for the company remains unchanged."

Earnings this week : May 27 - 31, 2019 (wk 22)

Monday (May 27)

• Markets closed for Memorial Day

Tuesday (May 28)

• Morning: AMWD BAH BNS MOMO NIO PLAN
• Afternoon: HEI NXGN RAMP WDAY YY

Wednesday (May 29)

• Morning: ANF BMO BZUN CMCO CPRI DAKT DKS GOOS HLNE HMLP THR WUBA
• Afternoon: DSGX KEYS PANW PVH QADA SMTC TLYS UHAL VEEV VRNT

Thursday (May 30)

• Morning: BITA BURL CSIQ DBI DG DLTR EXPR JILL MOV SAFM SPWH TECD TITN
• Afternoon: COO COST DELL GPS MRVL NTNX OKTA RRGB UBER ULTA VMW WSM YEXT ZS ZUO

Friday (May 31) 

• Morning: BIG GCO

• Workday (NASDAQ:WDAY), Momo (NASDAQ:MOMO), Nio (NYSE:NIO) and YY (NASDAQ:YY) on Mon May 28; 
• Palo Alto Networks (NYSE:PANW), Capri Holdings (NYSE:CPRI), Abercrombie & Fitch (NYSE:ANF) and Dick's Sporting Goods (NYSE:DKS) on May 29; 
• Lululemon (NASDAQ:LULU), Dell (NYSE:DELL), Costco (NASDAQ:COST), Gap (NYSE:GPS), Dollar General (NYSE:DG) and VMware (NYSE:VMW) on May 30; 
• Big Lots (NYSE:BIG) and Build-A-Bear Workshop (NYSE:BBW) on Fri May 31.

=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.

=Zuora (ZUO) reported earnings on Thur 29 Nov 2018 (a/h)

Zuora beats by $0.03, beats on revs; guides Q4 EPS in-line, revs above consensus

• Reports Q3 (Oct) loss of $0.10 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of ($0.13); revenues rose 32.8% year/year to $61.6 mln vs the $58.96 mln S&P Capital IQ Consensus. 
  • Customers with ACV equal to or greater than $100,000 was 504, a net increase of 30 customers, representing 30% year-over-year growth and 6% quarter-over-quarter growth. Dollar-based retention rate increased to 115% driven by incremental improvements to gross churn and robust upsell activity. Customer usage of Zuora solutions grew, with $8.6 billion in transaction volume through Zuora's billing platform during Q3, an increase of 37% year-over-year
• Co issues guidance for Q4, sees EPS of ($0.12-0.11), excluding non-recurring items, vs. ($0.12) S&P Capital IQ Consensus; sees Q4 revs of $62.3-63.3 mln vs. $60.50 mln S&P Capital IQ Consensus.

=Zuora (ZUO) reported earnings on Thur 31 May 2018 (a/h)

Zuora beats by $0.08, beats on revs; guides Q2 EPS and revs above consensus; guides FY19 EPS and rev above consensus 

• Reports Q1 (Apr) loss of $0.32 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of ($0.40); revenues rose 60.1% year/year to $51.7 mln vs the $48.97 mln Capital IQ Consensus. Subscription revenue was $36.1 million, an increase of 39% year-over-year.
• Co issues upside guidance for Q2, sees EPS of ($0.16-0.15), excluding non-recurring items, vs. ($0.17) Capital IQ Consensus Estimate; sees Q2 revs of $53.5-54.5 mln vs. $51.33 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY19, sees EPS of ($0.62-0.59), excluding non-recurring items, vs. ($0.65) Capital IQ Consensus Estimate; sees FY19 revs of $220-223 mln vs. $213.51 mln Capital IQ Consensus Estimate.