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Zuora Inc. Class A (ZUO+0.05%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing details a proposed merger agreement with Zodiac Purchaser, L.L.C., under which Zuora would become a wholly owned subsidiary. The transaction includes a significant minority investment from an affiliate of GIC Pte. Ltd.
The merger agreement stipulates that each share of Zuora's Class A and Class B common stock will be converted into the right to receive $10.00 in cash, subject to regulatory and stockholder approvals.
Zuora reported total revenue of $116.9 million for the quarter, a 6% increase from the same period last year. Subscription revenue increased by 7% to $105.3 million, while professional services revenue slightly decreased.
The company incurred a net loss of $32.2 million for the quarter, compared to a net loss of $5.5 million in the previous year. The loss was impacted by a $20.2 million charge related to a debt redemption liability recognized as part of the proposed merger.
Zuora's cash and cash equivalents totaled $277.6 million as of October 31, 2024, with net cash provided by operating activities amounting to $66.7 million for the nine months ended October 31, 2024.
The filing also notes that Zuora acquired Togai Inc. and Zeddit Limited during the fiscal year, expanding its capabilities in metering, rating, and AI solutions for digital publishing.
Zuora's management highlights the challenges posed by current macroeconomic conditions, impacting customer purchasing decisions and extending sales cycles.
The company continues to focus on expanding its customer base, particularly among large enterprises, and enhancing its product offerings to drive future growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Zuora Inc. Class A quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.