ZUO - Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to Zuora's First Quarter Fiscal 2023 Earnings Conference Call. [Operator Instructions] Thank you. With that, I would like to turn the call over to Luana Wolk, Head of Investor Relations for introductory remarks.

Luana Wolk

Thank you. Good afternoon, and welcome to Zuora's first quarter fiscal 2023 earnings conference call.

we and Tzuo, Financial Todd today, Chief Founder Officer. call Officer; Executive McElhatton, the have Zuora's Tien and On Zuora's Chief be Robbie Officer, Q&A and President joining also session. Traube, the us Chief for our will Revenue

any of outlook. and today's upon reflect subsequent We our representative subject and represent as of to our may considered as views beliefs as from statements securities federal any today that or that expectations forward-looking views obligation events only differ call, under we should future laws. During any statements relied to make uncertainties expectations. update results These date. to cause be that and our disclaim not are will actual could materially several be concerning forward-looking risks These of statements statements

For financial finally, material of affect the financial and results, factors filings important discussion refer our the today SEC. our other measures. with that to non-GAAP our could please And further discussion risks includes

details the to both release, to year's reflect made adjustments find of which the non-GAAP current measures can and GAAP table reconciliation in results. our prior selected You a that includes press today's

Our results, call Investor be with today's website replay press a Zuora's to And the on that, release at investor.zuora.com. turn call of Relations I'll found over can Tien. and you,

Tien Tzuo

for consistent our creating recurring transcend streams. biggest near-term best world and continue Luana, invest another of solid trends the subscription was The QX us Thank yet built first and thank today. proof XXXX revenue everyone level macro point you, call. earnings quarter joining companies that the quarter growing The you, uncertainty. is and Welcome fiscal to Zuora's execution. in another any economy and in on to

results. to the over we continues the in consistent continues ago execution technology place structure to in deliver lead Our XX months put market

dollar-based QX, we non-GAAP closing of revenue, loss. XXX% the In from the highlights. guidance up XXX%, and quarter some QX, rate In the operating end was guidance retention total significantly for while for our revenue year-over-year. First, again at exceeded subscription high

In plus last QX, XX% XXX% Our and of intact. in came growth up in remains QX XX%, at subscription from last revenue in ARR at our in XX% of year. from year QX year goal for growth came XX%, this up

to which that announced call. the in I'm Zuora is reports more carbon-neutral on impact now later Finally, new we a ESG say will proud we company, our and about talk

As from the usual, quarter our some let go-to-market our me observations product our market, execution. on share and

subscription continue as to out revenue faces base. the of see are continue trend world First, see economy. Companies we of that our in the in volatility, subscription economy we the opportunity a provide And to the can seeing play predictability this the rest model. large recurring such power customer when the

examples. to of making GoPro, makes that quarter, XX% customer were and their our roughly customers Zoom, a years up $XXX their was announced Bloomberg, one are subscription earnings the ago, on the they latest customer revenue than just compared Xx another XXXX subscription bigger Some $X pandemic. service XXXX. in now a by grew And billion earlier XX% its X is company call Today, the while our year-over-year. company million this month quarter. our over before revenues

additional on revenue to see the continue uncertainty, land large navigate and the embrace of durable focus times multiple customers allowing in And as across model more environment. industries demand our segment stability to current us enterprise In we industries. companies recurring the us these fact, to new gives

the we audio Times. we financial electronics forward in given turning with processes York example, at are companies products more In recognition signed having, orchestrate to markets consult, services. the to up banks adapt revenue they the customers change and known quarter, of and agility to which experiences are in scale, These revenue. services, in multinational than to $X.X manufacturing, a quote technology than equipment. the services billion cash in manage U.S. In Zuora manufacturer For means new revenue signed our more complete we one its need largest this and $XX with New as their billion to publishing, the signed video because for their

this complete in than fact, In Zuora In suite. we quarter half of big new revenue have buying a the logos, that And the finding are companies quoting, in differentiator. platform and more recognition. saw than we billing, buying one QX, more most product, that stands, monetization collections a entire our QX, was

digital as BMC Zuora be the revenue Software, will and recognition. their example, to quote all to the offerings central deliver enterprise, BMC's ability their SaaS leader to of For global Zuora a cash of company's solutions management source support revenue order autonomous part of turn the and transformation. for software in to recognition

streams Siemens, multiproduct in expand expansion In rate. three QX, with with saw In revenue continues addition, expanded additional business. to our quarters footprint All like work wins Customers our land with has and across growth their dollar-based recurring power more. deals new strong fuel of we to retention and QX, Zuora valued ARR at or strategy. this $XXX,XXX upsell their multiple fueled divisions of

our within Zuora Revenue continues products, portfolio to of Now shine.

We bigger continued deals Zuora even a Revenue are strong seeing pipeline. with grow

media Zuora social For entire revenue tap example, a members, better in with QX, the million to professional more platform they XXX manage process. recognition networking than

installed recognition our disruptors complex, critical their how in orchestrate cross-sell Revenue as companies becomes and cash ability was opportunity. it such we natural base, and a revenue processes see help and upsell billing They fast Invoca Zuora success like more our saw quote to is into to to with recognition continue these as revenue CarGurus. We growing scale to

on are Now delivering. of proud also are the our strategy product go-to-market made is pleased front, equally how the progress we've but with we we

of our we price ACV $X our has with the As $XXX,XXX X new more. sales more we and of believe this we said, than we In lies QX, or playing for spot logos doubled. out with million closed Year-over-year, deals us in with in more; see sweet the and market deals. large enterprises, or ACV two, for average

are customer remarkable. our into the years created years The the saw us. base Now it's in these to integration our guide our because a created usership but truly few turning from business. a of We for attracting of enterprises our this differentiator of unique to institute companies exception. was intelligence collective tap to depth deliver ago, asset. experience blueprint off also partners unique big, subscribed to And journey XX-plus factor this Zuora to is to ecosystem, in this to we partner It's because of technology, turning big continue also strategy In of we be expertise. And of more the launching our quarter and leading no to is process digital system new for our key out to services. our a QX, built

milestone to SI we grow. efforts. this XX% partners big all year. certified reached transactions. a new partners. than In business source We our have continue influence globally partner Our continues of Xx to our This certification over represents QX, In last now time consultants QX, with over and our pipeline in partner to growth XXX more compared

is resources in Digital's strong monetizing Digital's business even with this dedicating that learned excited gain Zuora I'm now new we digital Digital us fastest-growing truly Deloitte new partner Alliance factory. emerging with Zuora Deloitte to Deloitte recent momentum. Our by enterprises partners help more also that globally. services to Summit, at transform to is share relationship continues their

broader that's provide a company ingrained deeply accomplishments revenue which and day been a to first recurring especially Finally, our that one, subscribed on equity a principles I access close the and goods to on Zuora. this committed to we subscriptions of. work services earlier that we very can and models could impact ESG. and report, efforts inclusion am personally, be increase where sustainability. initiative me are proud month, believed From world place and Zuora's with at our These And to highlights prioritize formalized ESG to

year mentioned officially earlier on forward. Zuora is going of call, we maintaining course, as to I First, the carbon fiscal of neutrality And neutral. are committed carbon as XXXX,

diversity workforce. strength our XXXX, our of the demonstrating and statistics fiscal released of as also inclusive end the of diverse We

to are plan. external our successful be as long-term to [Indiscernible] beyond the than executive our over years affecting for to million to but organizations to we're team and fund. certainly successful Zuora of working, come. and strategy good In past and employees, through impact our In closing, fact, members our half of quarter ZEOs, to There for more across Board control market, of always, fiscal building continue of factors groups. our deliver on year our XX% is about Directors future. of accomplishments thank you impact-driven excited possible. donated for $X Zuora globe XX% the and according profitable continue durable growth making the are we company, underrepresented another And this our we for our a focused We delivering

review over our to I financials. the turn will to Now call Todd

Todd McElhatton

across you, key for Tien quarter expectations today. joining us profitability everyone the financial our Thank and quarter. board or entering solid was exceeding meeting with growth metrics the QX and a

with results rates. are exchange are environment with We seeing the the headwinds the current given pleased macroeconomic and we

improvement above was more million, progress plan with which year-over-year. the was This X%, integrator grew our with call. our and work results. our basis up North ended year-over-year. XX% implementation also gross end over at towards with drive year-over-year decline in million, professional integrators This I of at more execution, the start continued margin constant go-to-market total later run market the prior gross strategy On at XX on growing America. Total improve me guide a gross services improvement $XX.X will revenue high services provide $XX.X our Non-GAAP revenue a partners, services margin was line X% and with revenue to our high by end Non-GAAP top or margin. in million, Let our our XX%. ended especially near Professional year. revenue total system to color to Subscription exceeding breakeven. in was a of aligns demand, driven of currency these system XX% subscription healthier basis, mix plans our $XX.X points to guide. consistent support XX%, our

grew source which year threefold to increased and influenced mentioned, XXX our deals. Tien selling from price. As this we over consultants, also contributions certified our contributed partner fueled This past consultants partner has to average

We are in space. we are the with very especially enterprise traction pleased seeing, the

quarter at our was X.X%, with by managing top our operating This points an XXX partnerships loss non-GAAP integrators, year. year-over-year, margin $X.X our non-GAAP a line XX%. negative blended operating loss QX to business. million year. driven and growth Non-GAAP improvement basis of an ending continuous This of was points XXX in closely last grow system the investments in compared margin our improvement to saw million compared the an operating of prior of in of gross resulted the $X.X basis we As

million XXX approximately diluted count stock using share methods. shares end of fully the was Our the converted if the at treasury quarter and

metrics year-over-year. strong This maintained Moving of QX, recurring the some based In XXX% of other was to for retention exchange This improvement key X despite points a quarter. rate we headwinds. our the revenue illustrates resiliency of times ACV continue streams, foreign at ended uncertainty. QX, with of customers of that to during quarter and our represent the or in a especially X% the business, sequentially. end we spend $XXX,XXX decrease XXX of At above customers, of dollar XX%

pleased average growth are with selling price. we importantly, More our of the

Our than doubled new ASP average logo more year-over-year.

million. ACV had larger The remaining year. in XX% year-over-year. is last deals In our duration from above, customer $XXX,XXX closed is enterprises strong monetization grew with of these which of evidence deals of differentiation X deals. or clear Zuora platform. complete is evident we continue $X This of for longer portfolio greater fueling up performance our the total our to to a of obligations, X% and multiproduct Our turn strategy. than of success ACV product Large expansion QX, Two

Turning to billing transaction volume.

processed systems of billion quarter, XX% representing volume year-over-year. this Our $XX growth

million ARR This building we've as customers, transaction helpful the Starting and at level disclose key revenue our we annualized is noted our $XXX.X of dollar efficiencies differentiator year-over-year. ARR. as At as customers new of defined end active all reporting cash flow less is because time for not the the disclosure a and investors of at value absolute value was term this year. before, flow. than will for another of ARR of our services it now looking And X cash ARR offer the was scale. We enterprise provides quarter. is this additional gain as free solutions the quarter, revenue, XX% indicative we metric performance. space. of As further process scale well the growth cost end such our in highlights recurring million our the value volume ARR professional the nonrecurring they of contracts with excludes Free the a grew contracts QX, with as $X.X the of as insights with for contract believe into at booking customers or modification period. subscription

fluctuate due cash a to performance term. it's basis reminder, a of may believe longer quarterly We timing on As cash collections. free flow flow to assess cash over best the our a

to in continue business of foster the growth while will invest driving towards by XXXX. XX Rule a We sustainable to fiscal

defined a CapEx cash plus subscription for free As sum was as Rule margin. the revenue reminder, XX of growth Total is our the $X.X million. year-over-year flow quarter of

Turning to balance another over which quarter, sheet. the of Silver execution. Lake quarter cash in increase $XXX the $XXX in quarter an million the solid by investment, the We QX. demonstrates cash and with ended was equivalents, QX mostly continued million closed prior and driven

and impact we environment the to vigilant be meaningful business, a While and the monitor macro continue to will war the we not current the Europe, situation. ongoing given in have seen

that XXXX on and fiscal prevailing exchange material on have foreign our not assumes based these rates. factors are negative a do outlook impact Our the business

let's financial Now our to outlook. turn

price You of Each we interest revised will This our the quarter. will to will noncash expense, note the The interest and driven value the stock year in have reflect closed income that a flow. changes to have and EPS Lake and by cash which also the proceeds quarter, cash an investment, volatility. adjustment this market Silver been flow free full item warrant impact fair is liability. ranges

variability. this exclude to from wide will our due We non-GAAP impact guidance potential

go-forward The will approximately impact be decrease For income the to million. expect net $XX.X $X.X million. quarterly full by year, we

a guide also cash the for $X the previous free full on to approximately year million million We expect of $XX million. reduction $XX from flow of

Turning to our outlook for QX.

benefit, included a a As year tougher a top which onetime last line reminder, QX this of compare year. creates

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

For the outlook. revenue mix full our year, we adjusting are

revenue As be service to fiscal our XX% you XXXX. know, we are of professional revenue by targeting overall

to we our $XXX current during are this relationships at total with year. continue assuming share breakeven. approximately increase to net of outstanding per $XXX Subscription system to $X Non-GAAP million. expect We partners, million. operating million a $XXX shares Non-GAAP leverage loss to of to As to $XXX.X we revenue million $X.XX million to loss $X.XX the of currently per share, accelerating million. our integrator weighted revenue to growing $XXX remain average

or $X now Lake working. off, flow year, or we impact $X XXX% dollar rate ARR free expect For that point earlier, XX% free cash the outlook also in as investment. full of Silver based We our due strategy the retention proof range to close the are flow yet adjusting million And is to QX expect of the cash To another was of million. our generate of mentioned to we better. growth better, I

to customers cash allows recognition. complete to revenue quote portfolio to automate from product market-leading Our business processes

This Zuora market I your Tien, seeing level the enterprise-grade a over Robbie grow testament the questions, demand they're for of With will in operator. to it integrator customer system solutions. their we partners happy the turn continue is our that, practices. are Our take to to and and to

Operator

Your from comes of first Instructions] Brent the Thill Jefferies. question with [Operator line

open. is line Your

Luv Sodha

the do of downturn? model, talk a maybe if enter volume-based bit level, you Brent for a about numbers. Luv taking your Tien, could ARR bit thank with Tien. And little start a is for pricing? you Todd. to component about Hey, business of and the incremental you Hey, could at Hey, little question Thank on a for Sodha out Thill. resilience the potential This the talk high we Robbie. my you Maybe

Tien Tzuo

what in mean every Yes, and X customers X right, you absolutely, better back people's manage. saw model, Luv. this XXXX, layer are -- we I double [indiscernible] is know years loyalty. saw subscription you this have customers much we QX. specifically line, saw in product first you at of When we of of look our ago but every what the got that revenue it's chasing not start snapped and significantly and I you've models Those simply and customer years, that obviously, that's where dollar a indispensable then of you're had that half businesses memories creates -- a us, single to been resilient model. we are We when now recurring that we greater model, you is practically finish subscription that are subscription have short, level are that a the uncertainty quarter And in single a turmoil. at service business subscription, our are revenue seeing downturn and are

it's so model level in have. like forecasts macro hard itself continue there. you know is, the to that what year, of trends be strong. of business what's to see we the shift And we we the going fairly model happen that And regardless know economy to it lots subscription resilient. Certainly, know is to But business right? out We of the

we pretty we And our respect effect we are you're seeing feeling constantly so has to on tweaked minimal contracts. and now. feel say about going But But when that tend think really pricing, macro it. I good right, at to our level, I a is tweaking to We We pricing would right With that. customers what's are. sign on grow. longer-term good grow tend about where we

Todd McElhatton

we add the greater coming seeing new of far talked over that, a quarters, mix out. I'd are much maybe standpoint on the as as add we've are as thing Tien, last the other The a that several to products goes, from impact

with to thing product same is volume overall And as continues smaller our part so becoming grow. Revenue a the mix. And of that

volume year don't for for also, that a think I and dependent But upon Luv. us less growth. to the we're is less material So impact drive

Luv Sodha

Maybe on helpful of interesting ASPs the helpful. commentary. logo was Got that have comments That's for it. Todd, one -- That's doubled. new if one

so trajectory could net the at do the dollar of there the retention, I we And the be of longer that over of XXX% guess think as leveling you level? you. And off Thank think longer-term term? a how

Todd McElhatton

the XXX% year, XXXX, it based we to that we are feel our there. to seeing feel is time about at like. in selling said better. Like I what XXX% to enterprises more really range. grow are is looks believe opportunities into we absolutely And We are that dollar still this what good XXX% by we the there's we've expect and we or fiscal retention right

So we should we are think about to that as from benefiting end. I have that we focus to Those in. ponds that that spending and in rather more, upmarket think we focused us for than the low are moving companies being enterprise, are are just used those that fish bigger on are on

Luv Sodha

Got Thank it. you.

Operator

question of Joshua from line Needham. with next is Your Reilly the

line Your is open.

Michael Rackers

taking my we Hi, is today. lot a Josh I Michael look to on everyone. question. This for revenue, at for guess is roughly which of I’m international Rackers. Thanks XX% as XX% revenue, your about should the these how last of And guidance? macro to X we situation your Ukraine into the factoring over you demand challenges how think the are months? then impact

Tien Tzuo

So I and will Michael. go that ahead take

first At support they've Ukraine. continue us. particular been our either do exposure business. into FX able or supporting no to like in current We a account rates of does are this And thankfully actually are. all, we point, guidance So who take Russia have our today, people have shared few to we've where revenue

have of Some to relocated third-party them provider other countries. with their

time, be manage maybe able the signals talk been But through demand. any we've to of it, Robbie we monitoring are and standpoint, demand but at to operational perspective, strong. will that a let But our about from certainly from this continue I risk. demand so And

Robert Traube

Thanks.

going are models the and global. on after terms are we absolutely recurring that enterprises are and to those. how guidance that enterprise key think of I business are we seeing the revenue in And about continue we coming the think way working across us

Michael Rackers

your then And me. your year is the force year? thus you. Thank guess, beginning Great. more productivity this the expectations are one far? of how for versus, partners And then Thank you. sales contributing How I at trending just

Robert Traube

there. which on [indiscernible] let -- I partner is answer that side, the me think will I start

a our seeing in in grow were the partners doing of of over are XXX well. certified our third with consultants. working They're with us bookings are We we closely with about partners being involved terms as bookings our very actually that

great have from And I it's demand partnering So about we that aspect. think that there, before. we it, side the seeing are a great on competitive spoken same of

seeing in both We players way. that overall And for are on space the is the platform attach seeing are and are billing need revenue. one there's sit not to overall. ability We what to same the having this that we other

Michael Rackers

you. Thank Great.

Operator

comes with Vafi question next line from of Canaccord Genuity. the Your Joe

Your line is open.

Unidentified Analyst

having targeting? more of Thanks. playing of environment on This can into potential behalf on solid see other today color is you ago? great would to to on offer another pipeline. with technology, emerging My you're how question manufacturing versus first discussions your Maybe how execution. and And media, you're X months in is It's a [indiscernible] quarter Joe. the is X the you macro industries pipeline customers the maybe that your characterize little

Robert Traube

one look something revenue we to spoke [ph] And we right sitting the that monitoring platform, and both when But say absolutely across in about is key enterprise would applications we on people overall. billing now. is So which going going still I what's you we are overall, see right? us, world on offer

we perspective, strong are demand is that So through seeing as and the the seeing we it and coming are from as good in place that keeps now.

Tien Tzuo

decline So pipeline. far, we in not have a seen

Unidentified Analyst

any your pipeline big priorities? M&A capital for you. comment And your will valuations QX great focus mentioned on update Thanks. that on you. or the to criteria will hear. the call, That's Thank be a On there helpful? you allocation Any be

Todd McElhatton

This is Todd.

have such use see strong able we powder as sheet to to all, dry current it's of a that this to first and environment, So be in balance fantastic fit.

active very program. a have We

we constituencies. can gotten others in feedback different problems our partners our places on solve of aren't. to space, where a and customers talking our customers are We’ve help that from lot We that cash quote numerous to

of have soon don't as any this you. to share sure be it type anything with we as time, we'll update, we announce. And to have so But at

Tien Tzuo

to just any folks, plan might the our And Yes. business our not with because for this Obviously, we a into year, we did there we this projections transaction numbers right, Silver -- remind like Lake this of somewhat prescient. the acquisitions. something call be our in said, are opportunities thought and entered year But report are on to in the Todd in marketplace year. at progress be nothing is Those to half we moment. latter thoughts working this proving and

Unidentified Analyst

the for Thanks Okay. taking questions.

Operator

the with next line is Your question Berenberg. of Andrew from DeGasperi

line Your is open.

Andrew DeGasperi

Thanks for delaying taking of my is in terms potentially now be question. private Maybe first, there Tien, you margins now? last some the just of focus and maybe as conditions companies I M&A question. a right on or of right why market valuations follow-up the might to guess the the some the factor out

Tien Tzuo

say market, would anything, promising it announcement wouldn't went if me any we're through. currently in after more delaying a say, I Silver M&A. Lake looks to I

be that We success is, it. smart lots picture model. we are starting going but they a model. to things get is -- new level of certainly to the sell. to drive about technologies But whole need set Companies the are this this really We calls from of of business want with business macro new bankers

clear billing not is market enough. We The that realizing are is the leader.

our revenue insatiable see us. billing and also important You being and an we more for capabilities. recognition. have for appetite That new these That's differentiation to more said, of an becoming have we for customers said

But incredibly over. more of help street up good took shrinking take believe out picking can innovations, that. and to will innovations ever are since we that And accelerate especially [ph] capabilities development than there technologies We can are terms be our in want as we organic that us to say of going advantage customers, the actually things of proud I there will that we see position as would releasing, of fast be us we in to valuation delivery we make interested otherwise. in a

Andrew DeGasperi

then future. Got believe the now? maybe right are first, of for other in with you an do in I on terms where I think And partnerships, you tech give can And in mentioned looking update maybe partnerships Microsoft you us it. terms the the of secondly, partnership were you

looks Just wondering . what appealing think do now? you right

Robert Traube

up. a through other And partnerships Overall some on holistically more looking of out we the very year, at aspect doing, strongly, our those as will Microsoft they relationship strategic with come we again, product know Around more more focused are information there. carries you absolutely comes the let on we there. are as and

Tien Tzuo

Yes, happen we continues be the We overnight. integration now, going. to were primary Right don't to the wanted where signal system partnerships partners. focus

seen on been You've talk the as journey. the X-year have more and be integrators. system that partnerships now, progress part the to beyond the Microsoft, made right we a good That's impact having And But system now, this things are about the of focused hopefully will we've to also we front. later year. continues biggest right

Andrew DeGasperi

issue hitting for maybe why you had a time maybe -- I that’s And explicitly guess, you you their, stated on they helpful. and why just -- an that hard for lastly That's Zuora, mean reported then targets. been hiring the for different I me, hasn't had far? other software companies can I it's I that mention little hiring a a so question some of before the

Tien Tzuo

lot a the made year, corrections we of what we are market. given hiring think seeing in last I course

than this our work, decided to partners somebody point going I them think the always target saying, in and partners on business business get is seen we’ve us implementation be necessarily to overall, give look, of where work our accelerate and we and our consultants. of going on are that we about our to strategically one to this part to train professional should of system certify Todd well. are not to group. services that consulting The lot had it's integration do and hiring work And what is we really by easier to goal just them XX% to or that doing the hire talked challenges, be with we’ve a

group. than our to we So continue hire

to ability but continue bullish pretty to is something implementation about. pretty our our We of we excited are about grow, more are we give work partners to that

Andrew DeGasperi

you. Thank Great.

Operator

is of Your from line [Operator Craig-Hallum. with Bennett Instructions] question Chad next the

Your line is open.

Chad Bennett

in. Great. fitting for me Thanks

dollar on just retention. at It's net three based think, question a maybe and stabilizing XXX, for been quarters. I Todd, here So revenue expansion

say, you're lopping of Is kind quarters and XXX like see kind trailing the sounds in of the any for kind kind year? above share? expansion XXX to just we we're challenging of at color As to for. puts of the color -- net can hood of any more in is some I'd Kind need there confident get there some that number, acceleration -- it obviously there we more the off, Obviously, there takes and and getting of what's off point. and under you that

Todd McElhatton

think I we some tremendous points. we about you up think you year. made as as said, strides last that, are Chad, year-over-year X And Yes,

we As that very good this at being year, we forward move about plus. feel XXX

a a year, look one feel We some a that nice we look customers within that's I a drive think did being about are base been I out that of us nice the has able that driver. upsell the for. innovation job products the me have, Again, came that. of revenue to opportunity specifically last we've nice product installed that there. of is new increased at asking penetration to think got coming a take take when innovation out, our we product the if And makes good things you things that

XXXX. a So we new are where the for overall, high And will coming still plus. you end as XXX opportunity we absolutely products us to We we be believe at the the finish customers year we were have at by range XXX there up the of said, out believe as year to get time we we that and at over ago. this adding is on,

Chad Bennett

but deal massive -- a see volume trend, going should Got -- cross-sells XXXk it. increase mentioned If is just seems at whatnot. in Should it larger type especially we pretty a continue, how volume volume from change better that's also. new you despite of the deal to to of north all ASPs? is doing to volumes seeing of deal just increases if deals that and ASP expect getting also or like are activity standpoint obviously, And sizes also of upsells deals, the and and on deal that much are increasing, -- you say, think then I we

Todd McElhatton

think always business Even got flows. have ebbs be I in to enterprise you with you and careful that.

quarter, enterprise flow, not deals had we look with total the we've think deal a and us. at. good of just that logos larger customers, next really we impacted especially came of When but in quarter, number take a This got large looking couple pipeline only a at that I I are

So I think that's by flow always ebb going to quarter. and

Chad Bennett

Nice right. it. Got on the job quarter. Thanks. All

Todd McElhatton

Thanks, Chad.

Operator

There for this to turn Tien over questions now back remarks. are will I the Tzuo no time. further closing call at

Tien Tzuo

everybody me, call. for Well, thanks excuse the --

where quarter. recap, going. we to a are really I Just about had good we feel great

in are position. a good We

Our marketplace is growing.

to continue We execute.

Thank And Our the world quarter. next differentiated. economy. come best and through the you subscription to biggest appreciate help to into joining guide is to continue and The companies I them products us you. the are talk in to them call

Operator

for Ladies your and gentlemen, thank you today's conference participation. concludes call. This

disconnect. You may now

Zuora (ZUO) 26 May 222023 Q1 Earnings call transcript