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Zuora (ZUO) investor relations material

Zuora Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary9 Dec, 2024

Executive summary

  • Total revenue for Q3 FY2025 was $116.9M, up 6% year-over-year; subscription revenue grew 7% to $105.3M.

  • Non-GAAP income from operations increased to $25.1M from $16.0M year-over-year.

  • GAAP net loss widened to $32.2M, reflecting acquisition-related costs and debt redemption liability.

  • Entered into a definitive merger agreement with Silver Lake and GIC affiliates to be acquired for $10.00 per share in cash, valuing the deal at $1.7B; closing expected in Q1 2025.

  • Key operational metrics: 451 customers with ACV ≥ $250K, dollar-based retention rate at 103%, ARR up 6% to $419.9M.

Financial highlights

  • Subscription revenue increased by $7.2M (7%) and total revenue by $7.1M (6%) year-over-year for Q3 FY2025.

  • Gross margin was 67% (down from 68%); subscription gross margin at 77% (down from 79%).

  • Non-GAAP net income was $24.8M, up from $12.3M year-over-year.

  • Net loss per share was $(0.21) for the quarter, compared to $(0.04) a year ago.

  • Cash and short-term investments totaled $558.5M as of October 31, 2024.

Outlook and guidance

  • Proposed merger expected to close in Q1 2025, subject to regulatory and stockholder approvals.

  • All prior guidance withdrawn due to pending acquisition; no forward-looking guidance provided.

  • Management expects sufficient liquidity for at least the next 12 months and continued investment in platform innovation.

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Frequently asked questions

Zuora Inc., together with its subsidiaries provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. It delivers a comprehensive suite of services including real-time provisioning, finance, accounting and payment processing for recurring revenue models, such as software as a service (SaaS), digital media and content sales, professional services automation (PSA), and communications services. It also offers operations support system (OSS) applications, back-office integration solutions, and enterprise management platforms to help organizations efficiently manage their subscription businesses. Zuora Inc is based in Redwood City, California.

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