Zuora, Inc. reported its financial results for the second quarter and first half of fiscal 2024, ending July 31, 2024, showing notable improvements in revenue and reduced losses compared to the same period in the previous year. Total revenue for the three months ended July 31, 2024, was $115.4 million, a 7% increase from $108.0 million in the same quarter of 2023. Subscription revenue also rose by 9% to $104.1 million, up from $95.5 million. For the six months, total revenue reached $225.2 million, compared to $211.1 million in the prior year.
Gross profit for the second quarter was $78.1 million, representing a gross margin of 68%, an increase from 65% in the same quarter of 2023. The company reported a loss from operations of $9.7 million, significantly improved from a loss of $18.2 million in the same period last year. The net loss for the quarter was $7.2 million, down from $22.6 million, resulting in a net loss per share of $(0.05), compared to $(0.16) in the prior year.
Zuora's total assets increased to $849.2 million as of July 31, 2024, from $823.8 million at the end of January 2024. Total liabilities decreased to $657.1 million, while total stockholders' equity rose to $192.0 million, up from $133.7 million. The company’s cash and cash equivalents decreased to $237.0 million, while short-term investments increased to $306.4 million.
Strategically, Zuora completed the acquisition of Togai, Inc. on May 9, 2024, for $24.3 million, aimed at enhancing its metering and rating capabilities. The company also reported a decrease in professional services revenue, which fell by 10% year-over-year, attributed to leveraging system integration partners.
Sales and marketing expenses decreased by 16% due to a workforce reduction in January 2024, while general and administrative expenses increased by 30%, primarily due to higher consulting and legal costs. The dollar-based retention rate declined to 104% from 107% year-over-year, reflecting customer churn.
Overall, Zuora's financial performance indicates a positive trend in revenue growth and operational efficiency, despite ongoing challenges in the market and a history of net losses. The company continues to focus on its subscription-based business model while navigating economic uncertainties and competitive pressures.
About ZUORA INC
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