2024-04-16 00:18:09 ET
Summary
- FY24 results were decent, but growth was hindered by issues like unexpected churn and prolonged sales cycles.
- The focus on cost and operating efficiency resulted in gross margin and operating margin expansion as management targets profitability.
- The firm is trading at EV/Sales of 2.6x, significantly below peers, due to below-average growth.
- The current cash runway of approximately 8 quarters underscores the importance of achieving profitability.
- I rate Zuora as a hold for now.
Investment Thesis
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For further details see:
Zuora Has Upside Potential But Risks Exist, Hold