Zuora Share Price Drops 9% Despite Better Than Expected Q4 Results
<p><a href='https://financialmodelingprep.com/financial-summary/ZUO'>Zuora, Inc. (NYSE:ZUO) </a>shares dropped around 9% yesterday following Q4 results, despite better than expected Q4 results, with EPS of ($0.01), coming in above the consensus estimate of ($0.02). Revenue was $90.7 million, compared to the consensus estimate of $90.36 million. Despite somewhat sequentially weaker billings growth, the company reported another quarter of strong RPO (up 30% year-over-year) while ARR grew 20%, significantly above the company’s objective of 17% for 2022. </p>
<p>The company announced a $400 million strategic investment from Silver Lake. According to the analysts at Berenberg Bank, this investment will help accelerate ARR to the company’s long-term target of 25%–30% by providing industry expertise, partnerships, and additional capacity to pursue M&A, which may be a 2022 event. </p>
<p>The analysts remain confident in the company’s ability to accelerate growth as its multi-product offering continues to see strong demand.</p>

NYSE:ZUO