Why Zuora Shares Hit A New 52-Week Low Today

Zuora Inc ZUO shares are trading lower by 20.21% to $5.74 after the company issued fourth-quarter and FY23 revenue guidance below estimates.

What Happened?

Zuora on Tuesday reported quarterly losses of 2 cents per share which beat the analyst consensus estimate of a loss of 6 cents. This is unchanged from the same period last year. The company reported quarterly sales of $101.07M which beat the analyst consensus estimate of $100.21M by 1%. This is a 13% increase over sales of $89.23M in the same period last year.

Zuora meanwhile sees fourth-quarter 2022 revenue in a range of $99.5M-$101.5M, versus the analyst consensus estimate of $103.12M. The company sees FY23 revenue in a range of $392.5M-$394.5M, versus the analyst consensus estimate of $394.76M.

"We posted third quarter total revenue at the high end of our outlook, and we exceeded guidance for subscription revenue and non-GAAP operating income despite the economic environment, which has changed over the past 90 days. The macroeconomic dynamic has led us to make the difficult decision to reduce our workforce by 11% to align our expenses to our near-term growth profile and improve profitability in the near-term," said Todd McElhatton, Chief Financial Officer at Zuora.

According to data from Benzinga Pro, ZUO has a 52-week high of $20.43 and a 52-week low of $5.70.