Company Quick10K Filing
Zuora
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 111 $1,736
10-Q 2019-12-16 Quarter: 2019-10-31
10-Q 2019-09-16 Quarter: 2019-07-31
10-Q 2019-06-11 Quarter: 2019-04-30
10-K 2019-04-18 Annual: 2019-01-31
10-Q 2018-12-13 Quarter: 2018-10-31
10-Q 2018-09-12 Quarter: 2018-07-31
10-Q 2018-06-13 Quarter: 2018-04-30
S-1 2018-03-16 Public Filing
8-K 2019-12-05 Earnings, Exhibits
8-K 2019-09-26 Other Events
8-K 2019-08-28 Earnings, Exhibits
8-K 2019-06-18 Shareholder Vote
8-K 2019-05-30 Earnings, Exhibits
8-K 2019-05-29 Officers
8-K 2019-03-21 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-03-21 Earnings, Exhibits
8-K 2019-02-28 Officers
8-K 2018-11-29 Earnings, Exhibits
8-K 2018-08-30 Earnings, Exhibits
8-K 2018-08-15 Other Events
8-K 2018-07-10 Other Events
8-K 2018-05-31 Earnings, Exhibits
ZUO 2019-10-31
Part I-Financial Information
Item 1. Financial Statements
Note 1. Overview and Basis of Presentation
Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Note 3. Investments
Note 4. Fair Value Measurements
Note 5. Deferred Commissions
Note 6. Prepaid Expenses and Other Current Assets
Note 7. Property and Equipment, Net
Note 8. Purchased Intangible Assets
Note 9. Accrued Expenses and Other Current Liabilities
Note 10. Deferred Revenue and Performance Obligations
Note 11. Geographical Information
Note 12. Debt
Note 13. Income Taxes
Note 14. Stockholders' Equity
Note 15. Employee Stock Plans
Note 16. Commitments and Contingencies
Note 17. Net Loss per Share Attributable To Common Stockholders
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part Ii-Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits.
EX-10.1 a20191031q3-ex101xng.htm
EX-31.1 a20191031q3-ex311xng.htm
EX-31.2 a20191031q3-ex312xng.htm
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EX-32.2 a20191031q3-ex322xng.htm

Zuora Earnings 2019-10-31

ZUO 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
EPAY 1,928 669 290 422 239 10 30 1,830 57% 60.1 1%
LPSN 1,841 496 319 267 198 -56 -37 1,616 74% -44.0 -11%
PRGS 1,838 830 515 397 329 53 133 2,011 83% 15.1 6%
VRNS 1,824 304 204 271 239 -48 -44 1,755 88% -39.8 -16%
BAND 1,776 313 44 213 98 7 8 1,635 46% 214.6 2%
SAIL 1,764 559 184 190 209 -2 12 1,665 110% 138.6 -0%
ZUO 1,736 314 141 260 132 -80 -69 1,693 51% -24.4 -25%
SEND 1,722 245 48 105 79 -4 5 1,540 75% 333.4 -2%
CISN 1,644 2,215 1,730 740 469 -13 214 2,891 63% 13.5 -1%
SHOP 1,603 244 48 0 0 0 0 1,493 0%

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_____________________________ 
FORM 10-Q
_____________________________ 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-38451
_____________________________ 
Zuora, Inc.
(Exact name of registrant as specified in its charter)
_____________________________ 
 
Delaware 20-5530976
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification Number)

3050 South Delaware Street, Suite 301,
San Mateo, California
 94403
(Address of principal executive offices) (Zip Code)
(800) 425-1281
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
_____________________________ 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name on each exchange on which registered
Class A common stock, $0.0001 par value per shareZUONew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒ No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company




If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  ☒

As of November 30, 2019, the Registrant had approximately 93.7 million shares of Class A common stock and 19.5 million shares of Class B common stock outstanding.




Page  
PART I.
Item 1.
Item 2.
Item 3.
Item 4.
PART II.
Item 1.
Item 1A.
Item 2.
Item 6.




SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Unless the context otherwise requires, references in this Quarterly Report on Form 10-Q (Form 10-Q) to “Zuora,” “Company,” “our,” “us,” and “we” refer to Zuora, Inc. and, where appropriate, its consolidated subsidiaries.
This Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. All statements contained in this Form 10-Q, other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth, and our objectives for future operations, are forward-looking statements. Words such as “believes,” “may,” “will,” “estimates,” “potential,” “continues,” “anticipates,” “intends,” “expects,” “could,” “would,” “projects,” “plans,” “targets,” and variations of such words and similar expressions are intended to identify forward-looking statements.
Forward-looking statements contained in this Form 10-Q include, but are not limited to, statements about our expectations regarding:
trends in revenue, cost of revenue, and gross margin;
our investments in our platform and the cost of third-party hosting fees;
trends in operating expenses, including research and development expense, sales and marketing expense, and general and administrative expense, and expectations regarding these expenses as a percentage of revenue;
our existing cash and cash equivalents, investment balances, funds available under our loan and security agreement, and cash provided by subscriptions to our platform and related professional services being sufficient to meet our working capital and capital expenditure needs for at least the next 12 months; and
other statements regarding our future operations, financial condition, and prospects and business strategies.
Such forward-looking statements are based on our expectations as of the date of this filing and are subject to a number of risks, uncertainties and assumptions, including but not limited to, risks detailed in the “Risk Factors” section of this Form 10-Q. Readers are urged to carefully review and consider the various disclosures made in this Form 10-Q and in other documents we file from time to time with the Securities and Exchange Commission (SEC) that disclose risks and uncertainties that may affect our business. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and circumstances discussed in this Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievements. In addition, the forward-looking statements in this Form 10-Q are made as of the date of this filing, and we do not undertake, and expressly disclaim any duty, to update such statements for any reason after the date of this Form 10-Q or to conform statements to actual results or revised expectations, except as required by law.

1


PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
ZUORA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 October 31, 2019January 31, 2019
As Adjusted¹
Assets
Current assets:
Cash and cash equivalents$64,621  $67,940  
Short-term investments105,777  107,908  
Accounts receivable, net of allowance for doubtful accounts of $2,622 and $2,522 as of October 31, 2019 and January 31, 2019, respectively60,073  58,258  
Restricted cash, current portion  400  
Deferred commissions, current portion8,981  8,616  
Prepaid expenses and other current assets16,157  14,632  
Total current assets255,609  257,754  
Property and equipment, net28,392  19,625  
Restricted cash, net of current portion  1,684  
Purchased intangibles, net6,043  7,396  
Deferred commissions, net of current portion18,044  18,664  
Goodwill17,632  17,632  
Other assets5,569  3,292  
Total assets$331,289  $326,047  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$1,719  $1,512  
Accrued expenses and other current liabilities17,158  14,210  
Accrued employee liabilities27,227  22,603  
Debt, current portion4,447  2,963  
Deferred revenue, current portion94,010  86,784  
Total current liabilities144,561  128,072  
Debt, net of current portion7,187  10,494  
Deferred revenue, net of current portion209  112  
Deferred tax liabilities1,877  1,877  
Other long-term liabilities9,712  3,678  
Total liabilities163,546  144,233  
Commitments and contingencies (note 16)
Stockholders’ equity:
Class A common stock8  8  
Class B common stock3  3  
Additional paid-in capital534,642  488,776  
Accumulated other comprehensive income186  481  
Accumulated deficit(367,096) (307,454) 
Total stockholders’ equity167,743  181,814  
Total liabilities and stockholders’ equity$331,289  $326,047  
(1) See Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements for a summary of adjustments related to the adoption of Topic 606.
See notes to unaudited condensed consolidated financial statements.
2


ZUORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except per share data)
(unaudited) 
 Three Months Ended
October 31,
Nine Months Ended
October 31,
 2019201820192018
As Adjusted¹As Adjusted¹
Revenue:
Subscription$54,038  $43,083  $151,996  $119,849  
Professional services17,784  18,273  53,668  51,802  
Total revenue71,822  61,356  205,664  171,651  
Cost of revenue:
Subscription13,858  10,987  38,589  31,273  
Professional services20,443  19,190  61,445  53,569  
Total cost of revenue34,301  30,177  100,034  84,842  
Gross profit37,521  31,179  105,630  86,809  
Operating expenses:
Research and development17,903  14,282  53,662  39,667  
Sales and marketing28,027  24,849  80,818  71,008  
General and administrative10,597  9,579  32,366  27,553  
Total operating expenses56,527  48,710  166,846  138,228  
Loss from operations(19,006) (17,531) (61,216) (51,419) 
Interest and other income (expense), net1,190  633  2,294  (1,218) 
Loss before income taxes(17,816) (16,898) (58,922) (52,637) 
Income tax provision(421) (326) (720) (921) 
Net loss(18,237) (17,224) (59,642) (53,558) 
Comprehensive loss:
Foreign currency translation adjustment(141) (679) (416) (341) 
Unrealized gain (loss) on available-for-sale securities75  (32) 121  (32) 
Comprehensive loss$(18,303) $(17,935) $(59,937) $(53,931) 
Net loss per share attributable to common stockholders, basic and diluted$(0.16) $(0.16) $(0.54) $(0.62) 
Weighted-average shares outstanding used in calculating net loss per share attributable to common stockholders, basic and diluted111,835  106,049  110,436  85,820  
(1) See Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements for a summary of adjustments related to the adoption of Topic 606.
See notes to unaudited condensed consolidated financial statements.

3


ZUORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Nine Months Ended October 31, 2019  
Accumulated  Total  
Class A  Class B  Additional  Other  Accumulated  Stockholders'  
Common Stock  Common Stock  Paid-in  Comprehensive  Deficit  Equity  
Shares  Amount  Shares  Amount  Capital  Income  As Adjusted¹  As Adjusted¹  
Balance, January 31, 201977,119  $8  32,575  $3  $488,776  $481  $(307,454) $181,814  
Conversion of Class B common stock to Class A common stock 15,477  —  (15,477) —  —  —  —    
Issuance of common stock upon exercise of stock options, net of repurchases(15) —  2,217  —  8,981  —  —  8,981  
Lapse of restrictions on common stock related to early exercise of stock options —  —  —  —  365  —  —  365  
Purchases of common stock under the ESPP422  —  —  —  5,069  —  —  5,069  
RSU releases 595  —  147  —  —  —  —    
Stock-based compensation —  —  —  —  31,413  —  —  31,413  
Deferred offering costs —  —  —  —  38  —  —  38  
Other comprehensive loss—  —  —  —  —  (295) —  (295) 
Net loss —  —  —  —  —  —  (59,642) (59,642) 
Balance, October 31, 201993,598  $8  19,462  $3  $534,642  $186  $(367,096) $167,743  
Three Months Ended October 31, 2019  
Accumulated  
Class A  Class B  Additional  Other  Total  
Common Stock  Common Stock  Paid-in  Comprehensive  Accumulated  Stockholders'  
Shares  Amount  Shares  Amount  Capital  Income  Deficit  Equity  
Balance, July 31, 201987,875  $8  24,422  $3  $520,812  $252  $(348,859) $172,216  
Conversion of Class B common stock to Class A common stock5,413  —  (5,413) —  —  —  —    
Issuance of common stock upon exercise of stock options, net of repurchases(7) —  406  —  1,933  —  —  1,933  
Lapse of restrictions on common stock related to early exercise of stock options—  —  —  —  59  —  —  59  
RSU releases317  —  47  —  —  —  —    
Stock-based compensation—  —  —  —  11,838  —  —  11,838  
Other comprehensive loss—  —  —  —  —  (66) —  (66) 
Net loss—  —  —  —  —  —  (18,237) (18,237) 
Balance, October 31, 201993,598  $8  19,462  $3  $534,642  $186  $(367,096) $167,743  
(1) See Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements for a summary of adjustments related to the adoption of Topic 606.
See notes to unaudited condensed consolidated financial statements.

4


ZUORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (CONTINUED)
(in thousands)
(unaudited)
Nine Months Ended October 31, 2018
AccumulatedTotal
ConvertibleClass AClass BAdditionalRelatedOtherAccumulatedStockholders'
Preferred StockCommon StockCommon StockPaid-inPartyComprehensiveDeficitEquity
Shares  Amount  Shares  Amount  Shares  Amount  Capital  Receivable  Income  As Adjusted¹  As Adjusted¹  
Balance, January 31, 201861,984  $6    $  30,524  $3  $286,152  $(1,281) $471  $(234,713) $50,638  
Conversion of convertible preferred stock to common stock in connection with initial public offering (61,984) (6) —  —  61,984  6  —  —  —  —    
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs —  —  12,650  1  —  —  159,999  —  —  —  160,000  
Conversion of Class B common stock to Class A common stock —  —  59,478  6  (59,478) (6) —  —  —  —    
Issuance of common stock upon exercise of stock options, net of repurchases—  —  369  —  2,543  1  7,012  —  —  —  7,013  
RSU releases —  —  106  —  212  —  —  —  —  —    
Lapse of restrictions on common stock related to early exercise of stock options —  —  —  —  —  —  1,751  —  —  —  1,751  
Deferred offering costs —  —  —  —  —  —  (543) —  —  —  (543) 
Stock-based compensation —  —  —  —  —  —  17,722  —  —  —  17,722  
Related party notes receivable —  —  —  —  —  —  —  1,281  —  —  1,281  
Other comprehensive loss—  —  —  —  —  —  —  —  (373) —  (373) 
Net loss —  —  —  —  —  —  —  —  —  (53,558) (53,558) 
Balance, October 31, 2018  $  72,603  $7  35,785  $4  $472,093  $  $98  $(288,271) $183,931  
Three Months Ended October 31, 2018
AccumulatedTotal
ConvertibleClass AClass BAdditionalRelatedOtherAccumulatedStockholders'
Preferred StockCommon StockCommon StockPaid-inPartyComprehensiveDeficitEquity
Shares  Amount  Shares  Amount  Shares  Amount  Capital  Receivable  Income  As Adjusted¹  As Adjusted¹  
Balance, July 31, 2018  $  44,970  $4  62,680  $6  $461,804  $(5,657) $809  $(271,047) $185,919  
Conversion of Class B common stock to Class A common stock —  —  27,239  3  (27,239) (2) —  —  —  —  1  
Issuance of common stock upon exercise of stock options —  —  369  —  297  —  2,264  —  —  —  2,264  
RSU releases —  —  25  —  47  —  —  —  —  —    
Lapse of restrictions on common stock related to early exercise of stock options —  —  —  —  —  —  614  —  —  —  614  
Deferred offering costs —  —  —  —  —  —  (10) —  —  —  (10) 
Stock-based compensation —