Zuora Inc (NYSE: ZUO) stock rose 1.2% on December 3rd, 2018 (Source: Google finance) but fell over 1.3% in the after-hours session.
The firm delivered a decent the third quarter of FY 19. Non-GAAP net loss was $10.2 million, compared to a net loss of $6.8 million in the third quarter of fiscal 2018. Net cash used in operating activities was $6.4 million, compared to $4.9 million in the third quarter of fiscal 2018. Free cash flow was negative $10.3 million compared to negative $5.7 million in the third quarter of fiscal 2018. Cash and cash equivalents, restricted cash and short-term investments were $181.4 million as of October 31, 2018.
Moreover, during the third quarter, 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. Deloitte’s consulting arm based in Japan (Deloitte Tohmatsu Consulting LLC) announced a partnership with Zuora to begin offering consulting services for subscription business transformation. Zuora became a Premier Partner in the Amazon Pay Global Partner Program.
ZUO in the third quarter of FY 19 has reported the adjusted loss per share of 10 cents, beating the analysts’ estimates for the adjusted loss per share of 13 cents. The company had reported the adjusted revenue growth of 33 percent to $61.6 million in the third quarter of FY 19, beating the analysts’ estimates for revenue of $58.98 million. In Q3, the company grew subscription revenue by 43% year-over-year, to $44.5 million
For the fourth quarter of fiscal 2019, the Company currently expects the total revenue to be in the range of $62.3 to $63.3 million, Subscription revenue of $45.0 to $45.5 million, Non-GAAP loss from operations of $12.5 to $11.5 million and Non-GAAP net loss per share attributable to common stockholders of $0.12 to $0.1.
For the full fiscal 2019, the Company currently expects the total revenue of $233.4 to $234.4 million, Subscription revenue of $167.1 to $167.6 million, Non-GAAP loss from operations of $49.1 to $48.1 million and Non-GAAP net loss per share attributable to common stockholders of $0.56 to $0.55