Zuora rallies more than 13% after quarterly sales beat estimates

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Shares of Zuora Inc.
ZUO,
-0.12%
rose more than 13% in the extended session Wednesday after the enterprise software company reported fiscal second-quarter sales above expectations and a per-share loss that matched forecasts. Zuora said it lost $23.7 million, 19 cents a share, in the quarter, compared with a loss of $20.1 million, or 17 cents a share, in the year-ago quarter. Adjusted for one-time items, Zuora lost 4 cents a share. Revenue rose 15% to $86.5 million, the company said. Analysts polled by FactSet expected the company to report a loss of 4 cents a share on sales of $83 million. The company guided for 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 per-share loss between 3 cents and 2 cents for the third quarter, and a per-share loss 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-expand 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 have seen this quarter,” he said.

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