Zuora (ZUO) 3 Jun 202021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Zuora First Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Joon Huh, VP of Finance. Thank you. Please go ahead, sir.

you. Thank welcome Quarter and Conference XXXX Zuora's Call. to afternoon, Fiscal First Earnings Good

is Chief quarter. provide Tzuo, purpose me outlook as Tien Joining today our provide Zuora's our quarter call financial for well as on the of is Executive us color to upcoming some for first results today's The Officer.

Some of today responses and will include our discussion forward-looking statements.

variety our materially as of a So differ a could as of actual a results reminder, factors. result

issued in You our today can we information earnings find the in factors recent the with those filings most release regarding SEC.

several Finally, referring included financial be reconciliations we'll and earnings to our related to are non-GAAP measures measures GAAP today, release. the in

about copy replay over our Investor Zuora, SEC our of And links release, Relations filings, website a at of to that, it or a call turn investor.zuora.com. let me our more please For today's with to visit earnings learn Tien. to

call quarter XXXX. Thank to Zuora's you, first and welcome Joon. for fiscal Thank earnings you,

Zuora Matter before begin, unequivocally stand injustice. we Before Systemic happen the We empathy at fought. understanding change for condemn must Individually occur. racism up can and collectively, movement. Black injustices these Zuora against Awareness, intolerance. deliberate let we with stands be and must meaningful state me that Lives

workers changing a and times. also one battling health continue Now, of every lines, express in it's those our is crisis, essential I taking on care keeping function, foremost health ways. to safe economy massive these more the ZEO, the front and public forcing another society a behalf profound COVID-XX coronavirus, us be during first the our must than and affected unprecedented but who ever, also we and support care of allies. on as want to gratitude to

this crisis. will get We through

our world So we irrevocably has all recognize changed. also that

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adapting impacted believe to for our the are has and the that new we remains business, well we our environment COVID-XX demand While technology solid. underlying

ahead these in highlight drilling into X expectations. let came Overall, healthy free our we of cash growth and QX flow had areas, all as me revenue, quickly another income operating Before performance. quarter of

in the the SAP's and Concur, updated incredible functionality. tremendous him of weeks. we're sandbox him Revenue, beneficiary customers Because companies hiring multibillion-dollar our our starting opened In provide our scaled Strategy enterprise brings depth the order-to-revenue cloud The addition, models company Zuora Why? We most our of announced first of trail as to have data focused RevPro, tools to we entire are subscription tells all and CFO, which communities. proving More and in us. local new SuccessFactors track resilient. Todd equitable makes these includes and on cycle these an to version We to units Business, discovering just custom be changes. knowledge of addition of we $XXX,XXX It's to week, recently finally, the we multiple Subscribed our announced subscription Zuora our uncertain accelerating excited live on Qualtrics, audit newest a And on a fully creating know? helped businesses, of which we philanthropic recently, on zuora.org, win Zuora organizations experience suite is business to what more growth CFO few how Working team, public in Group business applications. Todd last is guidance and our board. of the customers more. launched McElhatton go grant integrated and XX the record includes with net incredibly arm, changing, global inclusive and to How with release do query, times, Central, Todd's as an a data our having to launched economy that are platform, with objects, solutions. award economy. we Zuora Billing of our Cloud

growth April May, Over at XX% the seen twice materially affected than customers year, crisis. are and the subscriber grown Subscription telling actually our of few businesses X rate. from Around showing customers faster a have months March, a our data Economy of growth subscriber revenue that last slower of we in growing, not is Xx current published traditional now accelerate. rates the What is half rates years, subscription have Index businesses. the customers still And our their their us to XX% have of our by seen just

all sustained of base this more grew customers out XX this customer Zuora time over period. or putting together, Now their X than

we're statistic, remarkable to a with so seeing that's pretty even what compared businesses. more nonsubscription when Now

the sales annual a X% example, For from in at negative S&P rate. QX companies XXX contracted XXXX,

same subscription the grew companies revenues through from our crisis. even continuing quarter, index outperformance While the in at this X.X% in

And so driver of significant subscriptions are a growth. above-market

capture superior explosive value the payments been and the trends, of needs and towards digital market match to especially accelerate flex offerings demand, global modern latter At to their economy the to companies that we April, to last take only to the on the months, we've hold tend changing of shift conditions, never models. launch services As apparent. their customers' their provide to In and results. subscription the customers and our the services of helps the same current retool quick time, actions business moments billing we these drive time believe new that Why? underlying technology subscribers. has Because agility of will crisis our half helped accelerate more few rapidly March

Let of new relationships to folks, financial in all to entire shut Originally their it give base lessons. Fidelity, Pluralsight user examples. some freemium, had from this of anxiety. up free financial of tools their Play, up April, to stronger time their free to tech platform essentially up help advisers month after X,XXX their the sign X up GitHub they a opened went for millions. build for eMoney, developer opening planning you million their over off users. the me XXX,XXX gave sign-ups, guitar under classes platform X Fender signing weeks. client offer to million of new classes Fender online X during just decided connecting hoping free

response extraordinary Zoom exercise meeting scale in to customers participants. helping the course, XXX worked of Of an million demand

credit prevent April accounts of pretty delivery. side, customers, customers the for suspend organizations On outright. from we relaunched their as of other pivot. app all app, their for they enabled March helped membership Resy, members a for to That's millions reservation We've and and restaurant amazing invoices turning to the takeout

blow they retool or do lines Imagine offer. hard-coded Or in just in X to rewrite a this organization launching billing of system in IT your some to or Salesforce to ImpEx up SAP Oracle. a to issue a spin freemium or your up code million credits have payment new all developers and that your having built tell would your with gateway. to to Now and imagine homegrown go addition service, having system around pivoting

our simply customers You is to effectively. over cannot XX do best show really to them how of last crisis. this platform utilize this the our we've This bearhugged during why weeks, time

we ways. our an announced significantly, webcasts we free. all But to processes. key example, of giving and has into rewarding X nature key parts and ideas strategic, communities free access our moment our the experience help solutions. admin up our more customize tools, of brought incredibly them able share of this teams For that our we're to to customers practices. months week our for customers our customers automate in been be Zoom made ZEOs mission-critical our such and important It's customer best validated COVID-XX-related of to platform We success with We've set rapidly training enabling last to

what Companies model as customer are faith. Now we've trends be our And importance they to favor. our the in that recurring relationships the long-term the over seen subscription last direct validated revenue new that we've the as always realizing of enable. customer-centric believed well the the and in only has streams of months few revenue superiority

indefinitely Our deployments We've continue that first $X proceed deployment. billion seeing moving their with We're connected forward crisis CRM they're healthy a but furloughing paused suspend with manufacturing it's seen last large that, moving the restart XX they're quarter. billing revenue while company pace, forward when one hit. employees, company at saw projects projects. device a of We were with to subscription a our still and our deployment,

slipped, result in lot slip news We crisis priorities in those sell the all state those said, proven being hinder deploy big internal many their is now, to That of continue them deals but the are closed would The Zoom of to see not ability system. them significantly is, our out of a quarter. be were about to leading how change. the QX the take causing including equalizer. Everyone pipeline. The has month-over-month more at home still and that in solutions, finalize true. to to been quality it throughout of is, can our quarter longer some and a right early improvement They're a the noise through some steady concerns of And concerns companies sorting May. processes and our deals, XX% to There prospects. good enterprise the have

some travel to helping get credits expand. long-standing with have with through to deployments. situations, real flowing been volume leading also and deals customers targeting revenue certain we payment lighter have our know sports In we industries deferrals. the operational that system, we'll we once We are intentionally like ability and And our of faster in

that quarter, term, for for the on trends importance to Now models. crisis has our the long-term intact. impact of on a be see durable subscription in the building has vision billings growth business but emphasized focused If expect the We anything, company only current remain changed. for we not The next there short will the stay to some all means this the long run. business

just on. how dramatically over entertainment, of and Just the services the list market lives goes changed work, customers prospects on-demand weeks. a committed in look now at We and economy. helping the health, last XX subscription remains transportation, is live our media, into to for our accelerate Zuora world digital the have leader

to back me our go it through let over Now to details. turn Joon financial

Thanks, Tien.

a what part ago. since world different reported working social three the earnings are in our help very and we world. as lives. great subscription to of has not is and commitment remotely, us us mentioned, employees, is around companies Tim our customers opportunity virtually As our the have economy. of ahead succeed a months partners daily distancing changed still meeting But Most to the We of

subscription the resulting negative lower saw for travel quarter. cash total led revenue Looking beneficial and timing on at better-than-expected loss of free expectations of at $X.X of And combined QX, flow lower expenses, with well operating came $XX.X we to in expenses million million in limited non-GAAP we payments, for of revenue results ahead came from for the million as and of ahead the We $XX.X $X.X our million. events.

annual the part of transaction majority platform motion let's growth net the the metrics, business as our was customers our digging XX% in up the sales for key customer our the XX Despite from $XXX,XXX QX. volume virtual to to majority We of the the more Now with and in start added number. revenue. quarter, into it the of process on group over the with a XX% our vast operating I'll in then resulting continues new makes quarter, Starting in customers. details, increase with customer represent ACV This of year-over-year. recurring move

lower This in activity Turning and the to driven our prior to volume by cross-sell second QX. key to XXX% down retention was operating compared upsell ticked metric. Dollar-based year.

from will metric. retention current we're the affect expecting metric in us. that expect sectors you'd this customers some for in As a very the downsells impacted environment, important is Dollar-based

trend. So me this talk we're improve let about what to doing

our providing on peers versus in success We've initiatives benchmarking with improve. and doing our to introduced to show investing they're we're First, efforts. how recommendations their customer how customers

grow our systems allows making initial rightsize to to with land to naturally customers we're changes expansion our and opportunities. that Second, future plans us into

about take will We're initiatives a ramping recognition we're fully the dollar-based metrics. integrated expansion given automating Third, retention. number for With motion that now operationally to revenue we're measurement improved their optimistic it lead our talking billing will XX few customers integrated Revenue Zuora We cross-sell of XX-month live for reflected process. that a customers to know product. to these a products, get quarters these for changes rolling on

transaction to volume. on Moving

Our in systems year-over-year. basis, represents processed this XX%. volume $XX.X transaction billion On on a growth XX% trailing which also transaction growth quarter, XX-month volume was

does our larger revenue transaction volume because realize as a reminder, they track not pricing line As in our efficiencies volume. blocks of buy customers with

financial in services $XX.X XX% solutions. revenue million $XX.X QX, total our for results in of revenue in continue expectations. quarter. as customers million grew to to of our deploy Turning $XX Professional quarter. the revenue increased resulted mission-critical the to million to Together, this Subscription ahead

gross data margins. margins in center Non-GAAP spend. QX our to our at subscription Looking efficiencies increased by XX%

of breakeven basis. was expense points and margin resulted XX%, increase managed compared costs. to we we as professional data million addition, $X.X areas prior including total percentage Q&E quarter. X our gross Non-GAAP to services operating the lower an a In gross of on loss realized non-GAAP This in center margin in operate non-GAAP

manage to XX%. making cost our margin continued investments negative non-GAAP or match to a improvement We growth. our This to point our operating led base percentage of the X revenue appropriate quarter-over-quarter while

representing free let's flow. was QX Now subscription million, Calculated for billings cash billings our growth to to year-over-year. $XX.X turn XX%

we While of a those closed notable QX, push we're already also deals date. -- some to number deals into we've saw

billings quarterly economic expect difficult QX it's predict in it's ahead, believe growth Looking We uncertainty to QX. lower versus to with do growth billings rate the subscription and a prudent fluctuations. for

each related move flow cash favorable of third to tailwind QX. headquarters. our and the our receipts, million free quarters CapEx and quarter to from improvement the a timing by in QX driven we for $X.X which million Total to ESPP-related $X.X primarily negative in cash first see compared $X.X million million, was year. was flow. $X.X was negative the of with cash lower Turning This expenses, payments

impact QX, from For which seasonality million, includes cash free and million quarter-over-quarter in payments we negative million business. $XX to $X timing the and the payments to ESPP-related flow our expect be related approximately $X.X of of

free $XX With than negative the flow full be we to million. expect year, better cash

of we our QX deliver and ended cash flow maintaining our in manage as while funded we against quarter target run growth. remain plan. exit to this are operating rate that million investing in and It's efficiencies to to on breakeven We cash We with the our continue year. equivalents target drive our current fully be and business important this $XXX cash

the Our XX, as fully diluted end the share approximately count was of million XXXX, of April using the XXX.X method. stock treasury quarter,

few we Now to our guidance. a before comments get

likewise, First, subscription customers business subscription a resiliency levels have business business, our resilient. in and models we We are of proving operate X to And our run models. subscription business. also be

on of of is agile meet years, the our Second, of over majority revenue market. our weather shift and demands relying few our The large given from our rapidly changing upmarket to are businesses customer today to the base economic comes to better the storm last this that current positioned medium pandemic. the solutions

are our future Third, for customers. the our driving growth solutions

with companies to implementations our investing free are customers is for the includes connected sales struggling, subscribers product Fourth, meeting very been balancing maintaining and move long-term prudently projects have on targets are continue our the while of why financial cash This in other While while our nearly thriving. around onetime supporting our year. We canceled. our forward costs our all success plan we're continue focused business. discipline. flow This to of services

our to guidance. turning Now

to assuming revenue to approximately loss of share currently million; operating to $XX $X QX, $X.XX, revenue million of shares average million; $XX of $X.XX total net $X million; we to million outstanding million weighted loss of $XXX.X $XX.X $XX per million. non-GAAP For subscription expect of non-GAAP

FY we year, full are the outlook. For withdrawing 'XX, our

execute. But the prudence your we're ability uncertainty, about Given great that, ahead And questions. take to financial current our in opportunity our we the economic confident a we outlook environment, Operator? and dictates of basis. on with think and quarterly we macro feel happy a have to despite us

Instructions]. [Operator

question Needham. Your of line first the Berg from comes with Scott

to and lots good Tien there. I the quarter. things Joon, on of digest Tien, guess, congrats

that up the certain a sales in -- how discussed the a the it whatever That think is environment buckets number think percentage we certain helpful. percentage should in from other ends of of downsells is billings you with around about that super current when being would is, we Is Joon both terms coming? percentage it quarter, start certain of comments second and be billings I there? think quarter that Let's for the from a maybe out lower

always I'll of and There's mix add we've that another, you And right? bunch I that that annual even But would one always from deals complicated we early There's start affects right can a now to renewals, is environment, impact There's of say, the here. Maybe typically number, is in can quarter billings Yes. will, some in this complicated. you a billings. if pull quarterly. color versus billings signaled Joon, factors. more a

certainly where for relationships. is contracts right, given And longer-term up in, And you relief that given customers environment, it's value in short-term industries would as are same. off certainly, long-term there trading they're tick our situations a the downsells we're restructuring a the we're TCV that and expect for they But some more need well. might the current so contract, the

long-term give And now, of right the we going to lot so we're possible QX, picture change. short-term But really signal to for definitely what trying best does we commentary. wanted on that's provide the signal variability to and is there's a not that thought

we add could right there, want do is that want to Scott, to for customer. here, prudent And we right? And be Yes. I what it the just

that in growth. here long-term thing that and is feel have we impact number. But place we that programs will about long-term the relief that Tien some important view that, great the slightly are mentioned, there the So as

think that prevailing I quicker But that. hopefully, QX so than view than are And quicker overall the comes the economy potentially lower comes it quarters. the back back And QX, hopefully, is that.

then deals, comment helpful. get from that. and help if us a Quite I right of And in around of actually smaller now. understand upsell sales how to dollars' can foothold, to from is, perspective, quicker, do can course, the general, that approach sale footprint, expand a kind ARR it of and those XX% worth lighter was like normalized level? But of a does of a there get mean? to you show you. the value XX% targeting a quickly traditional lighter follow-up deals a maybe follow-up allow hopefully, process What think to contracts brings up number? Is in that, number, you And for that this then lighter upsell that bring that you you

Yes.

really of kind the belt. under [indiscernible]. I last now quarters a back and -- customer sales had the the long-term over have of And so of to the relationship, has restructuring quarter, a got the The to two we hunter So We we a ownership flips about it year, fence of have quarter. some last closes He bring talked to his you that talked about farmer. as entered the deal right? to long-term mindset versus

And between alignment so right don't flexibility this the customers is if that, the reps some this to to look, we the to we're reps want do important, project doing. want be that do is for what's want but structure customer. right? And And to situations. able what our an say, out in what We in want that, the is the doing customer place, really right, this future, now we be situation, penalized, we the help cash and us is with

one always deal, lead first trend makes you is Joon of region, the so benefits that in one on have longer-term long-term the long-term about take subscription can the put to is sense of depends a -- dollar customer that. a to higher much because really that to person. should flexibility environment. it's a hard that things focused the that going on the lead depends on And things seeing does It's the in short-term net this retention. relationships. to sure of the really It's customer it that the it, to having We've it would number of that on right, the put of that got talked But And specific much, depends of just the Hopefully, we're making on one long-term on pressure long-term this -- part, part trend I we're number, might better where model do some view. it's -- billings but business. this say

the from Jefferies. line Thill Your next question with Brent comes of

Congrats some is print. on it's Brent for This you month-over-month. was Tien, One the sequentially commentary Thill. around and is me. maybe, Luv how on holding Sodha pipeline for Two the made good questions up improved

what's like that in what guys So maybe out there being versus you are I guidance the if seeing ask, could implied gave? billings you

absolutely. Yes,

economic looking is lot to talk lot say generation experiencing, effect online, people easier we're bit at of They're are company seeing good. is that companies to a And The what right? a differently. It's out guys we're be impacts that a of and there. every right? calls. home, internally. an would You channels. situation pipeline different what I of COVID-XX little make at might is They're people But

before. actually at than that you could could about Zoom that our more the they pipe, they think are home do now day If on in everybody's conversations generating SDRs

pipeline the generation so is good. And

hard years simply quarters that you it apply see situation, difficulty it's take to I and to just is the it's conversion think because what in the and the metrics new current historical and situation. previous a

I think just but being we're feel we to cautiously generation, how as right, let's while and watch the it these nevertheless, pipeline pipeline let's carefully, hey, evolves good this cautious, say, see deals so through optimistic, about just system. the move And cautious,

the quarter impact customers, at coronavirus when had how obviously just be them. I partners And wanted we Luv. Yes. and we I requests the from and if hit, obviously first for progressed, there, When some our we to could mean add we looked good saw

throughout is velocity noticed like terms has the things what and So in. deferral, quality. quarter the of payment changes, that, term pipeline we've better in yes, gotten those But came

things were deals to are able -- slip of we the our QX in had And May, in close number But a to from mentioned. Tien favor. as and those QX so

So good momentum. have we mean I trends good and

do but thing the think here the quarter. next prudent want about to I of terms in -- thinking we

it. side. guidance like had expectations our margin Got I if relative a one, beat you and It were And another the where was. may, where even guys maybe sounds healthy on to

is Sort a to would for of you more time? the step-up of way deliver there over a it of longer guys material is this short-term terms a profitability a more what -- in like future you period Or can into be going categorize this as beat?

Well, yes. I was...

take Tien? I don't this one, Why

Sure.

So the in like like little things and travel of our better other that a on we and and costs many terms in virtual limited companies, margins that. events P&E and came costs, bit because

So that this is lower cost to stay in place? question long last? real have And does sort this does long structure And of how certainly so is we'll helped. The how it see.

hopefully, this back to expect meeting we normal, are I that person. and when probably to savings would we get will doing for go some continue And see and it's costs to of tell that certainly next hopefully, traveling. up. is Hopefully, we think are the and are every going then year. here, hard in those company events, year, seeing right? through we we this But Because

revenue trying we match grow all we to important in. that in thing our But we're much So that expenses are invest. how terms of factoring and is how much and we the

by for target actually to end free important flow them the maintain maintain us of it's the and the improve time our cash And and year. over so margins why that's

[Operator Instructions].

from of Vafi comes Your Canaccord. next the Joseph question with line

Nice quarter.

$XXX,XXX think growth here, if signing how a From there's think know just about I -- be retention inflecting you're perhaps you're here. land-and-expand maybe how Just few above moving secondly, about dollar-based more stays think new versus, we parts a of have new should And we I focusing start guidance, dollar-based customers? know I to but on for talk the we may with retention thought Or a a ACV. bit about when say, up? $XXX,XXX? follow-up. not above to revenue customers of going I we we'd And providing think little the then should rest of then that year it it maybe strategy

don't... Why Yes. Sure.

add want you and Do I'll Tien, to on? this, take

Sure.

that. do Let's

macro level into are that moving the us every economy. subscription there for more the picture are So quarter, companies is

COVID-XX that. it, feel current tilting And to driving actually situation customers is really -- hope it. economy And is is can driving accelerate the to technology trend. our that is You the going environment. we The the

so engaging can't we with ball off take eye And logos. on the our new

And grow so where allows we Obviously, us simultaneously we well. to engaging at to run companies, that our try a we customers to economy. more in environment new a with we shift as model business subscription balanced to want looking looking as the continue are provide value to

of And was need. in mean had we going you're what balance QX so to see saw situation, given a I the customers that. a strong

see It'll to is and net the changes work some you that. system that -- pressures downward that. going out the things like is kind from you cover, should through sure drive couple work a have There's retention you're dollar that And to a will X-quarter needed Joon, of perspective. quarters to suspect of probably of agility that We the in will the for a number the that so -- the color business. we the drive and through add just that retention our to net shorter-term about few they're making Joon spent provides to to it right, system downsells dollar a what Maybe can effect trying it's lot of customers, time take because One with unlocking some things on affect related our a us. they numbers right?

Yes.

a XX-month trailing would I metric. so it's And say

over it bit sort of But investing in our to initial in lap the we're time take a of ramping that, success, the mind, think talked keep rightsizing our in up just I doing some that So way. some about and will quarter field, of cross-sell. some it if land -- things that you customer little our

It's we're have we impacted, So of right? our very there about look XX% XX% So industries that. are That exposure. at our focused you that less some of said, a revenue. don't even if SMB, recurring than or on improving are kind

do So but of of ton we have business customers. small have those a exposure, we don't some

And moderate so see these that But get it have better. that's these going and things place we But through in downsell would that or the to idea talked initiatives is some impact some overall, we the for of it through that the would about. that near term. pressure

kind the That's kind opportunities, environment want And helpful. may or helpful. then that just there COVID call the a pipeline the of of Any it of into of the this point. terms types in color steady-state we've whatever -- Okay. How be to changed into kind at moved size, has given coming industries? you what's of

I would of quite the know little state still changes ability say yet, -- hard that after be of a say unknowns. to we're think just human steady to kick to But and a a adapt in I to starts months, in. Yes. bit right? a inure I it's couple There's

You're seeing is the U.S., million ripple it, what you're XX seeing, effects in unemployment.

And be that. virus, going resurgences so to come like of there are effects has about, other to ripple things that

have able then better." market "Gosh, streams in out play had and companies. to with we bit new think bodes And selling ours. this. companies the did, connected connected, seeing that shelter-in-place If are that hard are we're X some revenue CRM with continuing are frankly, all steady would -- million hard say it's say to related through they're a early still we time to a state. We're you're are say seeing our little really million, and would X try having this But business. just with to they existing seeing we But the we of it really a anecdotes. pausing their would companies And we're million, We we're fairly these what what in But of deployment, well. would we're field they seeing I companies that but a X early When and seeing and it's saying, I products, I our that storm in other quite seeing projects. weather manufacturing they're share So the assets COVID been do. wish mid-March, conversations say -- because we hit and have subscription their purchase continuing

we're have terms short-term with companies boat of chaos be it. the uncertainty just of understanding so going as And and other in future the lot to associated that a in does same

comes Zlotsky Your of next from Stan Morgan Stanley. question line with the

the total This during guys being but retail, Did on have I double you travel, a want that I think to hospitality? guys don't is give of percentage you your Sarah COVID-related to verticals you mentioned for check. exposed that Stan. call, revenue

give didn't aggregate, the you it X% overall at We number if look the overall actually than but business. on number, less right, it's our of a specific industries, for an

They're office hospitality. basis. transportation. would that X% retail, in less you So that includes it's revenue at business, space the recurring categories. look a Those than the ones our it But on be aggregate, if travel, overall of

Got a I also had it. And follow-up. quick

is and cohort. should you So than growing you greater their in how $XXX,XXX that Is customers in? about we growing? guys contracts? dynamics at cohort continued Just ACV larger thinking I customers that the had growing guess traction Are how that? seeing be coming existing new

majority in customer Why don't much the group were with XX% this growing of those logos. And is actually I So out pretty of year-over-year, the growth quarter, new last take net XX. line one?

customers So good Robbie $XXX,XXX done Traube a customers. have new majority really and are new above. are below the of team from versus once board graduating that to It's because landing coming his on job

goes -- The it's our ACV. XX% that is that customer this that show of business our of -- I point mentioned other represents XX% or this to make group I would

that larger after. think, customers, more So that nice think growth customers But and seeing and about much we're here if medium are I you the hopefully, continues. going they our of we're

The next Sachs. with Merwin Chris Goldman from the line question of comes

RevPro and ask to in had It like out -- you've the with there added to functionality. that Zuora an Revenue. product wanted the market I some update already sounds it's about

you what So for of potential Just you could say to kind can to of there. like it? far? customer about competitors? Does new customers the is share Or so feedback be curious a this mainly deployment this net going take set any color the that new introduce any initial that

Yes.

still what used multiple that we've productized out major trying time centerpiece So just on and that calls. was folks it. name. product all is And release a the of but feel of We call me, honest, mad it we're call good be talking to The I to about We get we integration pretty been RevPro. and about that RevPro slip think RevPro. these quarters to harmonize the pushed at I in

Billing. Zuora have We

have name going We same RevPro product the as That product now the integration of now Revenue it's Zuora Billing. well. and that's But forward. integrated with fully to continues go

XX help comes the it have say, us closing by up their to company time look, the running books, I to you'd live, think takes and now books a are solutions. us through. to close integrated we're running that customers If things

joint good we're So feeling that about offering. pretty

think, prior we if the on too number in it we then much quarter But know sort was picked take wondering the should should to anything And into it. we transaction bit potential you've I for apologies how contextualize in that metric. and Got from past, look growth, quarter. the and that a guess of, up away analysts before, looks revenue but reading at like trends this about the relative it market. discouraged I the quarter-to-quarter I when this just end touched

mean has that's So impact -- that to I it, another number to a it. XX-month trailing right? Yes. aspect

a the that And revenues. to to number way that gaining between our show X just value is from right, to our and mentioned, to as want are system, that in you X we so continue companies not straight we quarter translation monetize, show number

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further time. conference Ladies this Thank and gentlemen, you at no this today's are for call. questions There participating. concludes

You may now disconnect.