Stock Story -
subscription management platform Zuora (NYSE:ZUO) will be reporting earnings tomorrow after market close. Here’s what to expect.
Zuora met analysts’ revenue expectations last quarter, reporting revenues of $109.8 million, up 6.5% year on year. It was a slower quarter for the company, with a decline in its gross margin and a miss of analysts’ billings estimates.
Is Zuora a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Zuora’s revenue to grow 4.2% year on year to $112.6 million, slowing from the 9.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zuora has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Zuora’s peers in the finance and HR software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Marqeta’s revenues decreased 45.8% year on year, beating analysts’ expectations by 3.1%, and Flywire (NASDAQ:FLYW) reported revenues up 22.2%, topping estimates by 3.3%. Marqeta (NASDAQ:MQ) traded up 8.6% following the results while Flywire was also up 2.8%.
Read the full analysis of Marqeta’s and Flywire’s results on StockStory.
Investors in the finance and HR software segment have had steady hands going into earnings, with share prices flat over the last month. Zuora is down 4.3% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $8.99).
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