ZUO - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora First Quarter and Fiscal 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank instructions] [Operator

turn Relations. over now VP Joon of Investor your will to call Huh, I

begin conference. may You your

Joon Huh

Thanks, Chris. Good quarter fiscal afternoon and welcome earnings call. to conference XXXX Zuora's first

XXXX. and Tzuo, Joining as are today's provide as for on call to outlook Officer. Zuora's our Tyler us of Sloat, the for our and some Chief The me financial purpose Zuora's Tien fiscal upcoming well Executive provide today is first Financial Chief results, year Officer; quarter color quarter

our responses statements. and of forward-looking Some will include discussion today

as reminder, as variety So a could our differ a of actual materially results a result of factors.

find the in the most can SEC. earnings and filed regarding XX-K today, the with issued You those recent information release factors we

recognition on As February results as on into we earnings our full also on all provided the accounting call, noted last financial forward ASC revenue new X, standard. standard, of XXX. our XXXX new method. going this the information Investor quarter under net we Relations should our of ASC will This retrospective from supplemental contains means Web site XXX, the ASC I updated and that we historical be XXX that note slides adopted

several the measures included non-GAAP referring and reconciliations today, to be we'll our earnings Finally, related to are measures GAAP financial in release.

our about please investor.zuora.com. Zuora, visit For our SEC Relations links learn more site call, of release, at a filings, copy today's to our earnings to a replay or of Web Investor

turn it me to let that, with And over Tien.

Tien Tzuo

Thanks, earnings for And call fiscal XXXX. Joon. to our welcome quarter first

of quarter. X% grew resulting largely $XX.X with revenue revenues expectations, services line our increased in and Our results total the XX% for million were first quarter subscription in professional

to in economy, that's playing large shift achieve Now long-term secular as ability growth. that and towards still a innings a a subscription in early our shift a all sustainable underpins we're you shift the know,

we're bullish the future. so, And about incredibly

QX our we some year outlook. financial we did QX and challenges However, full impacting are results, our solid have while had which

upfront. address me So, let this

support quarter. the with are two Later the by actions we cover I'll today talking comments my structure close products some seeing the growth following. I'll thoughts of the I'll through start thesis with on the we continue And of we're of where that long-term specific my subscription the headwinds in we execution economy. are will I our the that the and I'll share headed. taking. signs to saw

based on sales improve need execution. we saw I QX, in our First, what to

of As you our know calls, Schneider our growth. been Global from like Ford Electric. Companies companies source an XXXX recent have and Caterpillar, important recent

them have a And sales so, is we've and hired been experienced were less of talented year. support our seen number we Or people half newer teams and help over of the businesses. as and our need reps. experienced than ramp that training expanding oversight productive to sales finding to new past than new more QX close our that improve strategic with reps the reps in We're the

part of grow within products, installed RevPro. flagship Second, to on our predicated and Billing two been ability our our base has our cross-sell to ability

from demand two complex for What critical complete strong RevPro, mission systems. technical to However, to the products the is work than is integration longer we're billing time our integration expected. these taking seeing are these taking customers as product implement the

down delay. the And integration We've for billing recently our product past the RevPro. we've quarter existing so, purchased implementations customers, slowed given RevPro this

quarter product cross-sell as as but our on expectations delay services naturally acquire a has in and well the subscription tempered to down motion. standalone lower new this slowed basis, forward. customers and professional This going revenue in resulted continuing We're deploy each for

So, what to this? we are doing address

create us right an the next are organization On changes the key sales position process, execution to growth. stage side, three making the helped for we of infrastructure, that

get approach our an focused over oversight our that a market. mentoring more organization shifting our effectively in a under close from they can process. the newer accounts sales pipeline worked realigned managers, reps and and many we're to to business. second, earlier more strategic And years more evangelical developed provide We're motion revamping of we've placed more so First, experienced our

folks and demand level the also enablement generation sales next operations, We've have in field seen added skill. already of

announced we in sales our leadership. Lastly, change a

Over done years, few the Mark last incredible job our has business Diouane growing an worldwide.

level that to good a see. a new Mark can the approach. the will leader I analytical to who and a the continue Let we on go-to-market term advisor as shift and me growth, as more an market for we to search near business it's find a Mark replacement. time both next scale to stay for capture agree

able Like of all end hands-on end did happen the an bookings companies been deck many our with QX We've market. to of and recognized build We're more upper software enterprise way towards process This to that consistent the company. not quarters. that software enterprise numbers building is our committed focused go-to-market we we able sustainable approach in on growing make that not and the that is the this deliver to expect. a performance a predictable to

these in Now the are organization sales changes meaningful.

but for to back will time the our long-term expected onto become and we changes us take effective, the get trajectory. growth we'll right this business So, believe

Second, critically customer we we're course our our flagship us right two The important our the on is success. integration to a products and approach in integration that and side, on need I'm of a correction product track. confident

I'm here of personally lot drive my completion. time to this to spending a So,

innovate short-term the time, be QX. same We expect by this about delay and end more to to At to resolved I continuing will later. this the talk our and products of we're have on a that

last industries positive of the momentum a in technology. see outside Now three despite this, we in these of did especially months lot

as in both signed big recently the for publisher globally. big continues of wind and one utility recently the driver one largest a in solar Belgium media Chile. We world. producers be second count the example, now a than in them XX a the partner. the and companies largest signed of energy of we signed signed us largest more world's industry, and We of GSIs around automobile customer auto four to making the For We distributors a financial growth

about to as optimistic hard be as look these me you for When ever our at trends, future. not it's

before, transformational lot before, we've I many shifts as through industry. ourselves a subscription a to As shift be the the we're like of for play cloud, to shift consider a the that is mainframes on other to of economy. subscription seen portfolio or in every premise client And to example the entire said will ripple servers stages so this for an early we times

add a Why? by they the Sooner that's consumers. prefer have found access they'll consumers even can to more every over around this The survey in Harris the is will contend to that see the subscription Consumers a believe services or services owning to very recent shift future. over the than countries later, conducted future. that Poll, shift we of driven adults XX% the products. by subscribing subscriptions. to In survey and more ever and subscriptions shows today have Because more a company across XX% with have even think world XX in much

cars, but Strong but And down companies their out sales after industry what hours declining, on we as starting are and up. in bulk. even Game sales for are we up see down listened industry but where sales a hours to worldwide his and is ownership more consumption Car so, are are continues driven way is China to This ways to even subscriptions. played this is what music and including unit in more go are to growth is The businesses autos. looking miles is up. tie is are to declining. sales see pattern

relationships So their the these for the market establish new with turn set Companies we tools believe market around them customers demand. versus to remains then to and a of with strong continues built come And into is subscribers. direct broad opportunity based selling to this products. enabling services are looking us why

to we revenue company is we getting And started look system recognitions. often but we works. telecom at what understand going, better today collections ERP where because a quite frankly, compared We're just let's to do are how are an billings,

or make calls how physical transform their make assets you're much charged service offering you or company then any can use or telco into buy to you and data sense. a they them these use infrastructure you've that and access Now that according give switches They into. wouldn't you and access make Instead to doesn't that tap towers anyone used. satellites a to

BSS/OSS Now And in recognition. all telcos it The have BSS monetization a a handles system part, system. revenue part activities background. all you service call the the service for handling orchestrations this. all the and They billing the like know, OSS

hard spent have XX guys The problem these XX, years for it them. only this coding works is XX, Now platform.

tracking about everybody platforms about The have about They all services companies companies? turning what in manufacturers? What about these about don't into What car about services. into to right economy the subscription turn ERP assets want place. retailers? is they What So, is else? assets.

direction first adapt the headed we're can is We're building to model. monetization with products. that any a this SaaS our platform So, horizontal

Second orchestrate talking subscription conference user there. any the week. any at hope we'll company about service for to see in be industry or more annual any And subscribers’ around you our next world. conference also this I

So, future. products that's in solution. transformational an We're end-to-end in management addressing a we resolving building our to market playing the big working challenges good subscription and on feel sum and execution moving up, faced We're our shift about we direction. really QX in are we growing for demand

With Tyler. that, let me to turn it over

Tyler Sloat

Thanks Tien.

financial reviewing for results. operating of outlook metrics will year. by Let me our second our I today the then close and start the our to before quarter moving the remainder with key

execution mentioned versus with up growth over of customers. with field to business, XXXk solid thousand majority rate group represent growth XX% of our new ended We We ARR. key continues our earlier the represent operating this pay-TV number, of in over vast our customers the metrics. representing hurdles year. clearly but signing that prior Starting XX% the XXX saw This our customers in Tien quarter the impacted

based which retention at our XXX% Another at we about. ended dollar that talk key long-term of metric midpoint range the is

was a the While by that this retention slowed impacted in property level motion our healthy delay across us integration the dollar-based quarter. down is for

quarterly of metric year. this to talked that about we've previously, Given throughout the the in some expect seasonality can we see movements

in transaction be year-over-year X.X to driver volume, continues growth. upsell processed Billing XX% over biggest in billion platform Turning motion transaction the of customers. resulting QX to our We our through volume with our in this

or new can volume mind keep over may may in as Now, in customers given move their fluctuate meaningful customers in quarter. business a throughout have this seasonality the metric year

this the how know this you our Billing system aggregate alongside we customers. represents grow our usage and is of As

how heard we've about questions volume number a our growth Now, translates to of transaction growth. revenue

let walk through you me that. So,

may Our based the transaction lag period XX-month or expected transaction following purchases on $X system twelve annual volume distributed XX-month over a over actual the volume period. of be months. ratably purchase. those the not the We volume their over the flowing next evenly may block customers recognize blocks revenue buy billion through subscription volume our But

So, quarterly that the while volume for volume, specific customer reported quarter. be transaction be each consistent can for customer, revenue uneven transaction the may

to look XX% such also basis at As this growth. a it's metric in helpful results trailing which on XX-month

to I'll operating talk these financial all about metrics our how of results. translate

a XXX revenue we new standard As adopted reminder, ASC February of a X. as

our the there total was minimal under standard and prior prior of numbers XXX. services offset new higher numbers small subscription of purposes all the a a by a forward-looking as revenue are guidance. impact comparative of mostly ASC to in including with financial perspective, So, for revenue adopting From negative numbers year impact revenue year result high-level

cash difference loss standards. improvement in commission no There operating between resulting sales the flow lower was from two or accounting is in and expenses our cash an there

details financial our the IR Web As XXX impact to can beginning Joon supplemental of be the site. additional the related at ASC in presentation call, of found mentioned on the

to and impacted million We saw the call. healthy growth Professional of new this as was product services integration mentioned the quarter. the early grew XX% a business XX.X challenges in X%, subscription revenue in by

in year year-over-year in All last total of midpoint Additionally, rate. led guidance. line we to to ASC professional $XX.X from upgrading in this XXX customers million related to growth year. professional only in ASC further million our XXX, with services XXX,XXX impacted services of $X.X add of revenue QX to QX the the QX this compared This over

due have days we QX in services subscription quarter continue the and margin Non-GAAP performance to lower fewer of margin to quarters. in was compared to other gross steady non-GAAP business Turning the revenue seasonality gross lower XX%. professional in revenue, to services margins, our in

the As a non-GAAP run to roughly breakeven we've services target our organization said models basis. on previously,

of next course in to the expect over and few quarterly breakeven improvement We reach see these the margins the quarters. over year

quarters expenses, in this timing In year. into of was XX% performance our operating spending QX, our non-GAAP by driven expectations. of margin negative was partly slightly delayed coming was future This ahead

the XX.X As calculated XX Index. or dividing GEI our ourselves non-GAAP expense increase of better. of This in of incremental the many year-over-year each efficiency to of you and spending know, by we is the marketing trailing with million, months sales months Efficiency revenue. dollar trailing revenue subscription lower by XX we're measure number the acquire our XX It Growth less means million subscription

that to of go-to-market made seasonality business. over costs seem are GEI years the to the our point metric revenue ASC our amortization With term through while I supporting going out or as for improve should GEI our our was marketing the changes both under this and mind, goal growth. higher standard. number and may near We've to by X.X, also given is subscription GEI improvements in and the to impacted that this and our efficiency new approach sales level. fluctuations commissions XXX reporting sales similar But the skews our QX long-term QX forward our maintain

Now on this in We moving period QX. reflection some can the time there's generally Billings overall Quarterly growth of a Billings billings the growth. fluctuate and to a of saw focus we longer of business. because over better

we subscription in XX.X subscription challenges growth was in million mentioned in the driven higher growth that revenue We billings XX% subscription in year rate be that in billings expect is quarter. subscription resulted million was by billings we calculate XX.X billings We Similarly, early higher approach in billings total the QX. QX subscription in but early QX, call that lower And the on calculated in last will expect the This renewal our for growth growth rate. saw renewal QX. to lower billings expect last growth activity. in Calculated QX activity than of came this quarter. XX% reduce despite primarily the which to fact and we billings

billing We terms ASC also with growth in that adjustments along contributed balanced saw rate. higher a quarterly annual to mix XXX higher

quarterly continued we growth. expect forward, to Going billings see fluctuations in

Over the expect revenue year fiscal growth we billings year. grow to subscription we XX-month similarly growth track our long-term expect time, rates. For with to revenue ’XX, full our the subscription similarly trailing to for

flow, benefited some million from into Turning and negative we was collection QX flow free to X.X delays as strong future cash spending cash quarters. activity

to of the year. As we reminder, and agreement our the costs are signed come half to new in a a year those lease second most move headquarters of still this

for be in estimate. fiscal As a result, million approximately $X million the a negative to we improvement expect $XX free our cash ’XX, year flow from prior

remain We ended our for April the funded One plan. using stock current XXX as the of treasury quarter to method. with XXX models, was note IM million diluted in count cash against million and your other share XX cash fully equivalents operating our fully

comments. our quick to moving a Before few guidance numbers

were First, guidance. we largely talked with in as QX call, line earlier results in the about our

However, our is our the forward. self-execution impacting integration hurdles and impact the quarter Part of product in less our outlook predictable. going

year. So, a the range we're rest providing the of wider for

the of of completed realize and organization our to the while scale sales the product right confident be QX. the the few and by processes, are We efforts these to by the benefits quarters changes expect us the our of track it year. get should help company back end end a to on take We're to changes

And time. that positioned long-term we're about believe of capture we're growth growth the to lastly, subscription optimistic economy. best company sustained the over opportunity We the

with ASC that a guidance XXX. our out reminder close Now, me numbers are these under let numbers as

weighted million million; net of For $XX.X QX, million. million. $XX outstanding of we are loss loss to $XX.X assuming to currently expecting revenue of to million XXX.X non-GAAP per to shares $X.XX million; approximately and Subscription $XX $XX non-GAAP million total $X.XX operating share of $XX revenue

$X our currently approximately of the million revenue XXX midpoint million; to forty prior Non-GAAP loss estimates. ’XX, at revenue decrease from which a are shares and to we XXX.X. to per assuming to of expecting subscription XXX XXX share outstanding non-GAAP million; total fiscal operating of loss For net million $X.XX the $X.XX XX weighted of XXX full million, million year represents X%

to Operator? your With happy that, questions. we're take

Operator

[Operator comes question from Morgan Zlotsky with Instructions] first Stan Your Stanley.

open. Your is line

Stan Zlotsky

you All for right. question. my taking so Thank much

make guys changes realize, off sales kind you decide Is and know, sit the made to you into digging find “Hey, brewing is or rip potentially that we need been that making just are QX of if something specific make you you happened the worse? it and getting that's now. band, okay. something changes you this these maybe that in you that changes now,” let's to, And let's things So, before up now

Tien Tzuo

were to right, down, an we're I enterprise Yes. If software simplify company.

say deal would could way through the thinking through market. upper brute we force. quarters of power amount the we end Our sheer sizes, a I that our of is sell there certain And our to

so, Stan, just just with you. dollar a or for what opportunity eventually is, to have And subscription economy through we catches that a don't here company a saw to do dollar I force. that brute incredible we build up multi-billion think you and us is And billion a

hired have a that into saw model the And operations about new lot of have got talked But executive was we've we level change. the team me strong folks the team. We desire started to hiring in that here what move scale. the management next folks so, more team, predictable and sales that accelerate and team, the towards to the QX a we of a we've seen in enablement

Stan Zlotsky

to what right.” metric growth like, the the trailing “Hey, is Got Is underlying you're that it's continuing The in That people it. the you thereby, going this think hang that the I XX% a is is this really that head lot, the that opportunity saw basis. XX-month right? sense. that's really the really And as is investors what these and makes XX% the and executing transition, increase out investors subscriptions should guys this volume, quarter is of stands in are a big, to to. one opportunity, transaction the the on, that This their through in growth kind

Tyler Sloat

I'll solution companies it's explain incredibly take bit we are system, how coming keeps record our that This a continue that, talk with metric to grow number right. that as little them. also key about on going that indicative why use actually is we're spend we correlates that. to the for as sticky We picked time as But -- Yes. we is we But and number That's a going, in we to to reason to system that mission-critical be them. Tyler. a that's absolutely revenue. the able and of that have call

so, And customer and for that view each we that do watch carefully a we very positive as thing.

Stan Zlotsky

Got it.

so you Thank much. Okay.

Operator

Your next is Jefferies. with from question John DiFucci

open. is line Your

John DiFucci

I for one for you. a and have Thank Tien question Tyler.

years So, sort I'm Billings Tien, that to down. you Leeyo get some mean of and two how eat I going and I question of bought But, of the things I sort ago. RevPro know slow integration could tomorrow. this

like could now? How right not could So, down it how integrated? things slowing that be be

kind And Connect Like there something else about then, to related or cross-sell, other that traction what that, about that talking and Are to better? of and CPQ is be integrated products? seeing any what you like about Analytics? you're the also needs

Tien Tzuo

No, no. some years. on ago, Leeyo where two guess I acquire all than two did you We there. I'll color give little years less you but a coming

XXX. on and set there XXX ASC live The ASC on really up, get close dozens first customers year to core a was such was deadline tight to XXX the focused

call right, the us And I'll all so of QX, -- last standards adoption John, it QX took so, year. these way were through that when

until to So complete. the really two, the have between the integration XXX was the didn't on and honestly, resources we time waive after focus

summer, early really didn't spring, summer. we integration start early work the on until last So, heavy last late

course be short, one went we now absolutely false to now. a dead I'm direction. story have that confident path And And direction We corrected. that long end the a in down right we proved

orders So, right, different. is look an system, products. NetSuite, Everybody complex have little these subscription-based based a a are Oracle, SAP, has else system, we which

we've of a done Once due metrics bit that little done, cross-sell kick work this projects be that rights. had are All the to else done there had be a to of really is one were in our really, good. And to at so, bit no of believe and just that has these do done done, we learning point. will machine that what integration little tracking internal

John DiFucci

And Okay. are too, they the -- -- products seeing any yes? you other are

Tien Tzuo

There's not were products. issues home-grown are right? They no products inner acquired The integration there, in.

John DiFucci

Okay.

Tien Tzuo

And feel they good.

John DiFucci

mentioned would at that that, saw Okay. billings you due guidance XX% XX%. in this thought XX% to be quarter renewals early that And up Tyler, benefits what or to you of versus came the you

quarter. if of we what little was was you'd issues it next or You around some give could acknowledged happen bit can gauge was or was, X% a with What you X%, it us that, the us so tell sort what benefit can of information quarter? that, the

Tyler Sloat

Yes.

I'll thanks John, describe again So, first that -- hey, for question.

into renewals what describe our upsells, are, they reset to period doing term their companies have do they early right naturally they and the annual where future First, the an right? And that would upsell, -- were a choose that periods. I'll these fall annual when

thing traditionally, choice a reset extent this the So, in to some current the because We to terminals. pulls billing but a to I mean, whether volume but give saw customers need term It's in term. them a happens we single every than is buy skew want higher positive they a their again quarters of more quarter, others. into some it future QX, from the

not really it's predictable. So,

core skews down, early for renewals when but are the how biggest it have GEI the percentages, So, percentage, we we break the the factor.

of good continually also an more to have billings annual about pretty We shift to been mix.

for calculation kind by year-over-year itself. bookings, self was to ASC kind of factor. little the change actually compares revenue And impacted subscription growth and then, was less offset quarter growth growth. a QX revenue guided bit XXX we Then little bit. that the we the So that which we billings calculated be think in the subscription a biggest said challenges your second is actually of to What expect we that, I the lower talked was the this the with which about, than billings

John DiFucci

mean more difference was the XX%. sounds just I assume to think? I than it between like safe it's XX% that Okay. that and But XX%, it

Tyler Sloat

Yes. important. Yes. That's

John DiFucci

great. Okay,

Okay, guys. thanks a lot

Tien Tzuo

Thanks, John.

Operator

Your next Sachs. Chris with is question from Goldman Merwin

Your line open. is

Chris Merwin

questions. demand much products. wanted just you than cross-sell Okay. notion But, bit for taking anticipated. the you my Obviously, a you talk what of Yes, a on longer can heard more. Thanks implementations a I maybe the said RevPro very about bit taking bit to touch for I most still that the potential companies know this type are reporting quick that same you follow-up. And and seeing More you're of more I customers? generally, had from at under Thanks. just point seeing XXX a the about interest so

Tien Tzuo

We about product. the remain bullish incredibly RevPro

product more I that and One ERP level usage-based of shipment this revenue simple its there being complex. standards getting on and the And macro the think outside not simply payment, we've that's collecting manually rules said the Business on result, two system. as calls, but right. and based, business are models time more these more the models models that a or as changed the selling a customer-centric, as revenue are more really are previous Chris certainly, is shift, dynamic things. is trend recognition done pushing

And to metrics. companies, close, XXX, the so, do of visibility risk, doing lot That longer we lack all we're processes, compliance in through time Excel our we'll a we say of when that through creates but got creates surveys, a spreadsheets. manual

good we feel demand. so, And about really, really the

the I and product is all demand had course really, right that is, on correct, about the to in direction good done. really product. we with unique and certainly I the this really there feel is we're what a to marketplace. really when it's news technology This in piece And of be now, good And for the good not I but wrong feel wish so, chased about a going doing

Chris Merwin

reiterated the for XX% as following billings guidance, think the that, obviously relates I then which Okay, I long-term long-term, over revenue and great. it an year. guidance to the the And below implies little think bit to a XX% year acceleration you just this

subscription So of about that, at and maybe again a just and steady industries type you is about predictable that very we range drivers those think high lumpy, would something that you when what you shifting that growth level, a like about can the whole XX% it is to something economy sort then when so in main talk bit over XX% a the do be think can as that also of that is or Thanks. transition? be with see

Tien Tzuo

Yes.

that us hear, see change hopefully long-term macro adoption saw for So, better level in thesis in intact, and but of and the all just better, our we the reason no outlook acknowledge the confidence right? is, services. QX, in the is we greater we issues if the is is big remains picture getting you anything And

top isolated reason to my And industry. of down. tied car not And situation companies are will this recognition example the we go a we're that But to distributor or auto revenues up. tied if the driven, my it's working gave now sales, Chile my revenues seven go are to is so, miles my is with and will revenues car a the XX if are largest the revenues --

when are I when so, how I I look at when the And trends pipeline, at differentiated are when look I look our is, at our addressable that of innovate our to market, on consumer good really execute choosing at in good. really I happening look growth product about our digital their long-term feel transformation strategies, thesis. and companies where I preferences and feel terms

And position lumpiness prospects across a make look our our is to forward. going more across you so, us going that's shift at continue bullish does world, to but this about I own execution, broad-based attributed be is industries and think multiple to the the it when our happening

Chris Merwin

much. very Thanks Okay.

Operator

with question is Scott Needham. Berg next from Your

Your line is open.

Scott Berg

Thanks for I my I got everyone. guess taking Hi, questions. a couple here.

quarter, then was the to change an decision something the First Was it strategy the to post -- team, what made get you sales understanding of speak of look timing on to like? trying side? all, just when can quarter, the during

Tien Tzuo

It quarter. was post

Scott Berg

bring hoping assumption the my to Got versus an the is what's new leader you're externally then, internal is someone you. promotion that or And in, of sales profile assumption incorrect?

Tien Tzuo

carry So, the feel but that's place is, Mark, we two organization interim is leadership very is thing time. during forward underneath, things; the a this that team have I can confident been strong for in great that today, us

are For for the we replacement, outside search. our going

Scott Berg

And the Tyler, going last of Got What prior we'll to that's the subscription which flows cash the metrics is then, for maintained your come it if from relative play essentially is, EPS are which services of obviously no breakeven, than $X it. question million into impact and be savings reduction, accurate. revenue your really, the extra call guidance. guidance? me, about to to better cost guidance you those Helpful. either has lower year Outside

Tyler Sloat

a wanted get and lose breakeven, management little think did year, did it said but a job but there general, Scott. do for actually our to the really challenge We as in so, Yes. brings back cost we we're of good we bit the services call, we I of where going money that in in to

we be out that think tries we everything, yet, a we that business that bit the are behind to going adjust projecting if we little us spent I think when we the so put run then that. for model to topline is stuff haven't can different

year. right we're so what now the at And that's for looking

cash as making the a have this that's that why what than that. burn going guided than it because the same a initially have but we're lower going margins to lower to operating We but cash perspective to even on we the or flow side be much loss some such the said. going the not as the are from And from spend still year to do operating driving that that we So opposed same. bit have again revenue, we're HQ better a as to effectively, we perspective, a stay be capitalized, OpEx will we've stay is

Scott Berg

helpful. Thanks my Very questions. Great. for taking

Tien Tzuo

Scott. Thanks,

Operator

any the concludes presenters this portion things over Q&A now remarks. to the I'll closing the for back call. turn And of

Tien Tzuo

you Thank you. next to us we and Subscribed. you Thank seeing for joining much week look today Great. so at forward

Operator

This concludes today's conference call.

now disconnect. You may

Zuora (ZUO) 30 May 192020 Q1 Earnings call transcript