Zuora up more than 13% after quarterly sales beat estimates

Shares of Zuora Inc. ZUO,
rose more than 13% during the extended session Wednesday after the enterprise software company reported fiscal second quarter sales ahead of expectations and a loss per share in line with forecasts. Zuora said it lost $23.7 million, 19 cents a share, in the quarter, compared to a loss of $20.1 million, or 17 cents a share, in the same quarter a year ago. Adjusted for one-off items, Zuora lost 4 cents per share. Sales rose 15% to $86.5 million, the company said. Analysts polled by FactSet expected the company to report a loss of 4 cents per share on revenue of $83 million. The company targeted revenue between $86 million and $87 million for the fiscal third quarter, and between $340 million and $342 million for fiscal 2022. It forecast an adjusted loss per share of between 3 cents and 2 cents for the third quarter. , and a per share loss of between 13 cents and 11 cents for the fiscal year. Zuora’s retention rate improved and was a “clear indicator that our multi-product, land-and-expander strategy is working,” Founder and Chief Executive Tien Tzuo said in a statement. “We feel well positioned and positive about the future based on the overall momentum and execution we’ve seen this quarter,” he said.