Zuora Shares Surge 21% As Company Reports Q1 Earnings Beat

The shares of Zuora Inc. ZUO skyrocketed in the after-hours session on Wednesday as the company reported better-than-expected earnings for its first quarter this year.

Q1 Earnings

The business-to-business subscription management service provider posted total revenue of $73.9 million, up 15% from the $64.1 million reported the same quarter a year ago.

This compares with the average estimate consensus of $69.5 million of analysts polled by FactSet, as reported by MarketWatch.

Zuora said it saw a non-GAAP net loss of 6 cents per share in the quarter, down 45% from the 11 cents loss per share in Q1 of the previous fiscal year. FactSet analysts had estimated a non-GAAP loss per share of 10 cents, according to MarketWatch.

Q2 Forecast

The Redwood City, California-based company withdrew its previous earnings guidance for the second quarter in light of the novel coronavirus (COVID-19) pandemic.

Zuora said it now expects total revenue between $72.5 million to $75 million in the quarter. It estimates non-GAAP net loss per share to be between 7 cents and 8 cents.

Price Action

Zuora shares traded 21.2% in the after-hours session on Wednesday. The shares had closed the regular session about 4.7% higher at $12.59.