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Zuora, Inc. (NYSE:ZUO)
Q2 2019 Earnings Conference Call
Aug. 30, 2018, 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good afternoon. My name is Jay and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora fiscal Q2 2019 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press * then the number 1 on your telephone keypad. If you would like to withdraw your question, press the # key. Thank you. Joon Huh, VP of Investor Relations, you may begin.

Joon Huh -- Vice President, Investor Relations

Thanks, Jay. Good afternoon and welcome to Zuora's second quarter fiscal 2019 earnings conference call. Joining me to day are Tien Tzuo, Zuora's Chief Executive Officer, and Tyler Sloat, Zuora's Chief Financial Officer.

You'll see that we have a more conversational format to our call today and hopefully you like it. But before we get to that, let me cover some of the legal language. As you know, we finished our second quarter in July and the purpose of today's call is to provide some color on the quarter. We're also going to provide financial outlook for the third quarter and for the full fiscal year.

Some of our discussions and responses today will include forward-looking statements. So, as a reminder, our actual results could differ materially as a result of a variety of factors. You can find information regarding those factors in our most recent Form 10-Q filed with the SEC. Finally, we'll be referring to several non-GAAP financial measures today in reconciliation to the related GAAP measures that are included in our earnings release. For a copy of today's earnings release, links to our SEC filings, our replay of today's call, or to learn more about Zuora, check out our investor relations website at investor.zuora.com. And now, without further ado, let me turn it over to Tien and Tyler.

Tien Tzuo -- Chief Executive Officer

Thank you, Joon, and good afternoon, everyone. This is Tien.

Tyler Sloat -- Chief Financial Officer

Tyler is here as well.

Tien Tzuo -- Chief Executive Officer

Thank you for joining our Q2 earnings call. Tyler, can you believe that this is our second earnings call as a public company and that it's already been five months since the roadshow and IPO?

Tyler Sloat -- Chief Financial Officer

I know it, Tien, I can't believe it. It feels just like yesterday. Some mornings I still wake up in a cold sweat wondering what city I'm in. I know everyone made fun of me, but thank goodness I had enough grapefruit to stay healthy and keep the energy.

Tien Tzuo -- Chief Executive Officer

Ha, the grapefruit. Yes, it brings back memories. Hey, speaking of the roadshow, I noticed quite a few folks on the call that we had a chance to meet on the roadshow. To you all, it's been a pleasure keeping in touch. For those of you who became public investors in Zuora, a big thank you for being part of our family. And for the folks on the call brand new to Zuora, a big welcome from all our ZEOs around the world. Welcome to our journey building this subscription economy.

So, for today, we're going to try something just a bit different. We know these earnings calls can often be very dry, very boring, and we know many of you listeners out there have to sit through a ton of these calls. So, we're going to try something a little bit different. We're going to make it more of a dialogue. For the first half of the call, Tyler is going to interview me about the state of the business, what we're seeing in the marketplace, and then I'm going to turn the tables and I'm going to ask him a few questions about our Q2 numbers and our guidance going forward. What do you think, Tyler? Are you ready to try this out?

Tyler Sloat -- Chief Financial Officer

I'm ready, Tien. Let's do this. So, why don't you kick it off? You're going to talk about porta potties again?

Tien Tzuo -- Chief Executive Officer

No, no. No porta potties for this call, sadly, but we may take a trip to Wauwatosa, Wisconsin.

Tyler Sloat -- Chief Financial Officer

Oh, awesome. I can't wait. Let's do it. So, Tien.

Tien Tzuo -- Chief Executive Officer

Yes, Tyler?

Tyler Sloat -- Chief Financial Officer

If you think back 5 months ago, at our roadshow, you basically laid out our vision for Zuora and it really boiled down to 3 things. First, that the shift in subscription economy is a global trend and that it's happening across all industries and geographies. Second, Zuora has built the only complete subscription management solution focused 100% on helping companies of all sizes launch, scale, and transform into a subscription business. And finally, as a result, we are the portfolio play across the entire subscription economy. And as a result of that, we have a unique opportunity to deliver sustainable, long-term growth and build a great business. So, the question I have is if we were doing a roadshow presentation today, would you be saying the same exact things?

Tien Tzuo -- Chief Executive Officer

Well, Tyler, I would say that in the two quarters since our IPO, our condition has only increased.

Tyler Sloat -- Chief Financial Officer

Nice.

Tien Tzuo -- Chief Executive Officer

It's clear the subscription economy continues to grow and that we continue to find new business opportunities across a diverse number of industries all around the world. And I know -- we'll talk more about the numbers later, but you can see that this macro trend has really helped us to deliver another strong quarter of results.

Tyler Sloat -- Chief Financial Officer

I promise, I'm definitely going to go over the results. But before that, can you give us some examples of growth in the subscription economy?

Tien Tzuo -- Chief Executive Officer

Well, the book is a great example.

Joon Huh -- Vice President, Investor Relations

That's right.

Tyler Sloat -- Chief Financial Officer

I know you love to talk about the book. Now, for the listeners that don't have the background, Tien wrote a book called Subscribed: Why the Subscription Model Will Be Your Company's Future—and What to Do About It.

Tien Tzuo -- Chief Executive Officer

That's right. Gabe and I, well, we've been working on this book for about a year and we finally launched it in June. This is our first book. You hope it does well, but you never know. You have nightmares of all these 1-star ratings on Amazon. But it turns out that it quickly became a big hit. It's doing well. It made the National Bestseller list on Amazon, L.A. Times, and USA Today.

Tyler Sloat -- Chief Financial Officer

No, it is a hit. That's awesome. And that's actually really, really cool. I walked by a store in New York like a month ago and it was in the front window, which was really neat to see. So, congrats. But explain to me, Tien, how you think the success of the book points to a growing subscription economy.

Tien Tzuo -- Chief Executive Officer

Well, if you look at how the book is done, it's really reaching outside beyond Silicon Valley, in many ways. We wrote the book for the rest of the world. Now, you guys all know, we have a whole bunch of SaaS customers. Many of them are seeing tremendous growth and went public this year. Big, big congrats to Docusign, Plurasight, Avalar, and Pivotal. Joining our longtime success stories like [inaudible]. And I know there's quite a few more of our SaaS customers waiting in the wings to go public later this year.

But what we've always said is the subscription business model wasn't just limited to software. It can really work with any business. The book lays out how it's transforming a diverse set of industries from retail to media and manufacturing, and we really draw from examples from all around the world -- Europe, Japan, Australia, and, of course, here in North America.

Tyler Sloat -- Chief Financial Officer

Yeah, when I read it, on e of the things I loved about the book was all of those examples. But like Husqvarna to Fender, which we've talked about those companies. Is there one story in particular that you'd like to highlight right now?

Tien Tzuo -- Chief Executive Officer

Well, it's not in the book, but this quarter we saw another really interesting story. It's a story around lawnmowers.

Tyler Sloat -- Chief Financial Officer

Lawnmowers? Lawnmower subscriptions, this one should be good.

Tien Tzuo -- Chief Executive Officer

That's right. And this is where our story takes us to Wauwatosa, Wisconsin. Now, in Wauwatosa is a company you've probably heard of before. It's called Briggs & Stratton. They are the world's largest producer of lawnmower engines. They were founded in 1908. Like a lot of our other industrial manufacturers that we work with, Briggs & Stratton has spent the last few years heavily in outfitting all their products, in this case, lawnmowers, with sensors and connectivity. So, you might ask, well, so what? Well, it turns out that Briggs & Stratton sells to a lot of commercial landscapers who manage these large fleets of these lawnmowers. And so what we did is we just helped them launch a new IoT platform. It's called InfoHub for Commercial Turf.

Tyler Sloat -- Chief Financial Officer

Very cool.

Tien Tzuo -- Chief Executive Officer

And so, now for these commercial landscapers, InfoHub helps these teams track their equipment usage in real time. Now, visualize all these new data services that help these turf companies do things like flag potential maintenance issues, maximize productivity, reduce costs and increase their profitability. So, when we talked to Briggs & Stratton today, they talked about going beyond just products, delivering outcomes to their customers. We're helping them transform and embrace this new emerging business model.

Tyler Sloat -- Chief Financial Officer

Yeah, that's what we've been talking about, right? Customer-centric business models. I can see through the Briggs & Stratton Smart Lawnmower strategy how far reaching this can be, Tien. And in the future, I think us, our kids, we may be able to subscribe to nearly anything.

Tien Tzuo -- Chief Executive Officer

That's right. And in many ways, we didn't just write the book for companies that are already subscription -- Netflix, Spotify, Salesforce. We wrote the book for the Briggs & Strattons of the world.

Tyler Sloat -- Chief Financial Officer

Yeah, and it seems to be working.

Tien Tzuo -- Chief Executive Officer

Absolutely. Look, the uptake of the book? It really points to the huge amount of interest in the market in this new business model. In fact, we know of a CEO of a giant consumer goods company who read the book and immediately recommended it to his Chief Digital Officer. We're being asked by Fortune 50 companies to present at their internal management meetings. The success of the book really shows that this is growing acceptance. That the future business model is not simply about selling units of your product, but delivering a service. A service that your customers can subscribe to. You know, on top of that, the book is actually being translated into Chinese, German, Japanese, Korean, Spanish, Vietnamese, and even Turkish.

Tyler Sloat -- Chief Financial Officer

Tien, you must be crazy. That's a lot of languages. I didn't know you spoke so many logistics.

Tien Tzuo -- Chief Executive Officer

Secret talents, Tyler. Secret talents. The book has even been translated into Commonwealth English for the U.K. and Australia.

Tyler Sloat -- Chief Financial Officer

Wait, so all the Zs all became Ss?

Tien Tzuo -- Chief Executive Officer

That's right. Except for Zuora. They left the Z in Zuora alone.

Tyler Sloat -- Chief Financial Officer

That's good. We do like our Zs.

Tien Tzuo -- Chief Executive Officer

By the way, hey, if anybody on the call wants to read the book, Subscribed, email me. Tyler says I should send you a link to the Amazon page, but I might be able to sneak you a copy.

Tyler Sloat -- Chief Financial Officer

I was wondering if you were going to get that. No, we are definitely going to set out Amazon links.

Tien Tzuo -- Chief Executive Officer

So, taking it back to the signs of a growing subscription economy, I do think this is what's behind some of the numbers that you see in our quarter.

Tyler Sloat -- Chief Financial Officer

Okay, you've got to explain what. So, what do you mean?

Tien Tzuo -- Chief Executive Officer

Well, I'm talking about the growth numbers. Now, I know you're going to talk about the results later, but the growth of the subscription economy, I see this as what's behind our 44% year-over-year growth in subscription revenues.

Tyler Sloat -- Chief Financial Officer

I agree, Tien. The growth was really solid. But you know I need to say that we had some unique factors in the quarter that may not repeat in future quarters?

Tien Tzuo -- Chief Executive Officer

I know, I know. We'll dig into that later. Because it's not just that. The subscription economy results are behind the 147% growth in total revenue or the 28% growth in customer spending over $100,000 with us annually. And, of course, you can also see it in the growth of the transaction volume. I know this is one of your favorite metrics, right? That our customers are putting through our system processed invoice volume for Zuora billing grew 41% year-over-year to over $7.5 billion this quarter. Now, all these numbers really point to a steady, remarkable growth of the subscription economy.

Tyler Sloat -- Chief Financial Officer

Yeah, so I get the broad, secular shift that is happening. We're actually hitting the marketplace, I feel, right at exactly the right time. Subscription models, or customer-centric business models as we like to call them, seem to be on the mind of every CEO, CFO, and CIO out there. But, you know, Tien, you've also been know to say that in this new world, legacy systems from companies like Oracle and SAP, they just don't work anymore.

Tien Tzuo -- Chief Executive Officer

I know, I know. I've been quoted as saying that ERP is dead. Big controversy, I know. But what I mean by that is ERP systems, they were created for building and shipping and selling products, those old business models. This is why we saw an opportunity to be the provider of software that enables any company in any industry to successfully launch, manage, and transform into a subscription business.

Tyler Sloat -- Chief Financial Officer

Okay, well, why don't you give us an example then?

Tien Tzuo -- Chief Executive Officer

Well, when it comes to how we help companies, we don't just have one flagship product, we actually have two. Zuora Billing and Zuora RevPro. So, why don't I start with an example around billing.

Tyler Sloat -- Chief Financial Officer

Great.

Tien Tzuo -- Chief Executive Officer

Our flagship billing product powers the pricing and package strategies that drive company's growth, while automating their recurring ordering, invoice, and collections processes. Now, for today, since we're mainly talking to investors and asset managers on this call, let me tell a story of Fidelity. All right, you guys all know them as one of the largest asset managers in the world.

This story takes us to Radnor, Pennsylvania, where this quarter we deployed Zuora Billing at eMoney Advisors. It's a company that's owned by Fidelity Investments. Let me give you a little background here. eMoney serves the top financial advisors in the country. They have a suite of solutions around financial planning and wealth management and they have over 50,000 B2B customers and they are growing like crazy. Now, given what they do, these aren't one-time sales. These are long-term contracts. As you customers grow, these contracts are constantly changing.

And it's these contract changes and amendments where they encounter significant problems. Every time they needed a change, it requires a cancellation of the existing contract and the creation of a new contract because of limitations in their system. This is causing billing delays, customer confusion, invoicing errors, bad metrics, and ultimately it really limited their ability to scale. So, enter Zuora Billing.

Today, we're handling all their subscription management needs -- pricing, rating, billing, invoicing. Truly enabling their growth. Direct digital services? Probably not something you generally associate with big financial services firms. But this is all changing.

Tyler Sloat -- Chief Financial Officer

Yeah, I think it is all changing. That story really exemplifies what we're seeing from a ton of our customers, as they go through these business transformation changes, right? And that leads to a need for Zuora Billing, which I great. So, that's an example of Zuora Billing. What about Zuora RevPro?

Tien Tzuo -- Chief Executive Officer

Well, since you asked, why won't we move from financial services to hardware? Let's come back to the Bay Area and let's talk about Hitachi Vantara. Now, a lot of these big hardware companies, like a lot of them, Hitachi is really trying to diversify their revenue with software and digital services. This is where Hitachi Vantara comes in. These guys provide data center solutions, IT, IoT, big data solutions. As we go through this digital transformation and moving toward these consumption-based business models, they're facing a lot of the same complexities and challenges.

But in this case, it wasn't around billing, it was around revenue recognition. All the work around revenue recognition was being done manually, offline, Excel spreadsheets, and just taking up way too many resources. In fact, Vantara had over 50 to 60 revenue accountants around the world just to keep up with all these contract changes and amendments. Now, you throw in statutory compliance, different international regulations, IFRS 15 and ASC 606. It was just too much. And so Hitachi Vantara turned to Zuora RevPro because they realized that we were the only provider with both the knowledge and the proven track record, and the technology, that could scale with their business. All while letting them hit their aggressive timelines.

Tyler Sloat -- Chief Financial Officer

Got it. So, now I get it. So, business model complexity leads to a need for kind of new quote-to-cash subscription management systems, as well as revenue automation systems. That's really why we have these two products and why we think they're so synergistic. This complexity is happening across a wide variety of verticals. So, since it's so broad, Tien, I know investors are curious about how we find these customers like Briggs & Stratton, eMoney, and Hitachi Vantara. They're so different. It might make sense for you to explain our sales model a little.

Tien Tzuo -- Chief Executive Officer

That's another good point, Tyler. When you think back on the roadshow, most of you remember we're a SaaS company. We have a classic SaaS company model where we sell primarily through a direct sales model. But these days, we're also starting to see our SI partners bring us into deals. I mean, it's still early days, but these relationships are growing as more of their clients are growing through these digital transformations. In fact, let me give you a good example from this quarter.

Tyler Sloat -- Chief Financial Officer

Great.

Tien Tzuo -- Chief Executive Officer

For this, let's travel back to Pennsylvania. This time, to Philadelphia. So, Clarivate Data Analytics is a billion-dollar B2B company. They recently spun out of Thomson Reuters' IP and Science Division. They focused on the entire innovation lifecycle and they provide instructive insights in analytics for all things ranging from scientific and academic research to intellectual property services to plan protection.

Now, the key here is because Clarivate was spinning out of Thomson Reuters, this gave Clarivate this unique green field opportunity to start fresh with a whole new set of systems. As they looked at their architectures, they thought well, why would we tie ourselves to the same ERP systems that we were stuck with at Thomson Reuters? Why would we spend millions of dollars to hard code all the customizations needed to make SAP work? Especially since we're a subscription business, not a product business.

So, in this case, they turned to Deloitte Digital as the leader as a transformation partner. That's when we came in. Because as an alternative to the premise-based ERP systems, Deloitte provided Clarivate a new architecture. 100% cloud, designed specifically for subscription businesses and it had Zuora Billing included as part of the platform, which also includes things like salesforce.com and a cloud-based general ledger. Now, we think that this is where the world is going. To a modern, three-cloud architecture that enables companies to drive these new dynamic business models and gives them a chance to get out of their SAP and Oracle traps.

Tyler Sloat -- Chief Financial Officer

That's a great story, Tien. Thank you. I know there's a lot of positive energy around our GSI partnerships, as well as the smaller partners that we have. So, hopefully, this is the start of many more opportunities to come. What I like about these stories is how diverse they all are.

Tien Tzuo -- Chief Executive Officer

That's right. Over 100 diverse companies and a lot of initiatives.

Tyler Sloat -- Chief Financial Officer

I mean, if I look at the customers that you talked about this quarter and last quarter, we have consumer equipment companies, financial services companies, hardware OEMs, business services, utilities, energy. Even porta potties, right? There's even more stories in the book. They all underscore how diverse our customer base is. How universal and broad-based the whole subscription economy really is.

Tien Tzuo -- Chief Executive Officer

I know you like to point out that half our business is coming from non-technology customers.

Tyler Sloat -- Chief Financial Officer

That's right. I mean, the tech sector continues to grow and it's a really strong, strong book of business for us, but our non-tech customers are half of our business. We see that trend continuing in line of sight for a very long time. So, Tien, we talked about Billing. We talked about RevPro. Let's switch gears a little bit. Now, a key part of our growth formula is how we expand with our customers, right?

We do this in a couple of different ways, but primarily through cross-sells and up-sells of add-on products and transaction volume, as you know. This expansion is reflected in our dollar-based retention rate, which stayed flat at 112% in Q2, which we think is really healthy. I should remind folks that on the last earnings call in Q1, remember this, Tien? We said our business would naturally land between 108% to 112%. And we still think that's the range where our business will settle long-term. But given where we are right now and trending in the first half of the year, we may end up closer to the higher end of that range for fiscal year '19.

So, what's driving all this? In Q2, we continued to improve retention rates and had strong up-sell activity, especially from transaction volume, which represented more than half of the up-sell revenue.

Tien Tzuo -- Chief Executive Officer

No, I love the transaction volume growth aspect of our business. Now, I think we may have to mute folks on the call. Do you want to spend just a little time describing what that is?

Tyler Sloat -- Chief Financial Officer

Yeah, no, I think that's a good idea. So, our Zuora Billing customers purchase annual blocks of transaction volume on top of a platform fee. The transaction volume is technically measured as the posted invoice volume processed by our customers that run through Zuora Billing. So, because we think this shows the extent that customers are really using us to run their businesses, and if the totals continue to grow, it is an indicator that we will grow with our customers. It's a core usage metric for us.

As you said earlier, we had another solid quarter of transaction volume growth at 41% year-over-year to $7.5 billion in the quarter. Now, on up-sell activity, we may start with a small division or a business unit for some of our strategic clients, but because our product is so mission critical and core to their strategic initiatives, we can eventually demonstrate value in other divisions once we prove success there. This allows us to expand into a larger customer footprint. Also, really patient and understand that for some of our customers, as you know, these business models shift, they're going to take years to take hold. The timeframe is completely open-ended, as we want to work with these companies for decades.

Tien Tzuo -- Chief Executive Officer

Very true, very true. When I think about it, this last quarter, I think Continuum is actually a great example of this. Now, Continuum is an IT security and backup solutions company. They focus on managed service providers and they're based in Boston, the home of Click and Clack.

Tyler Sloat -- Chief Financial Officer

I love those guys.

Tien Tzuo -- Chief Executive Officer

They started working with us first with Zuora Billing. Just one of their divisions, R1Soft, which at the time represented 5% of Continuum's revenues. This was actually a couple years ago. The rest of Continuum's revenues continued to run through a home-grown billing system. Recently, Continuum as a company, they've been on a tear. This is when they realized that this home-grown system just couldn't handle their 35% annual growth rate.

And so, they already had Zuora running for a small part of their business. It was up to us to convince their management team that putting all their revenues in Zuora to help them scale to the significant growth they expected over the next few years. Today, the company is set up to run 100% of its business through Zuora, which allows us to grow within that account.

Tyler Sloat -- Chief Financial Officer

I think that's a great story. It totally epitomizes how we can grow with our customers and we actually have multiple paths for expansion. This highlights one of them. Tien, if I pause right here, how would you sum up the quarter?

Tien Tzuo -- Chief Executive Officer

Well, I would say, sitting here, for Q2, looking back on the last 90 days, I would say that we continue to see stories like the ones we just shared [inaudible] across industries and across geographies. And I said earlier the common thread here is that all these companies are finding new growth opportunities in these new business models. This is what we enable. For our investors, this is why we believe that Zuora is truly a portfolio play across the entire subscription economy.

Now, on that note, let's switch roles a bit and let me ask you some questions about our Q2 financial results.

Tyler Sloat -- Chief Financial Officer

All right. Well, I'll get in the hot seat. Go for it, Tien.

Tien Tzuo -- Chief Executive Officer

All right. Why don't we start with our team metrics? Now, we already touched on valid base net retention. It was 112% this quarter. Anything else you want to say about that?

Tyler Sloat -- Chief Financial Officer

No, we're pleased with that number. There's nothing really else to add except that we feel really good about how it's trending and I just want to remind folks that we may end up closer to the high end of that 108% to 112% range for the year.

Tien Tzuo -- Chief Executive Officer

Okay. Then how about our second metric, customer spending over $100,000 a year annual contract volume? Can you talk about that?

Tyler Sloat -- Chief Financial Officer

Yeah, of course. So, we told customers that we think this metric is a good proxy for our long-term growth. And since this customer base represents over 80% of our ATV, it represents a majority of our business. So, Tien, as you mentioned earlier, we saw 28% growth year-over-year and we ended the quarter with 474 customers in this segment for Q2, which we think is a really healthy growth rate for us.

Tien Tzuo -- Chief Executive Officer

Okay. So, strong retention, good growth in customers, aligns to the story we talked about earlier. But I'm sure the folks are also interested in reading into the core financial metrics. Why don't we start with revenue. Subscription revenue growth last year was 44% year-over-year. Last quarter was 44% year-over-year. How about more color on that?

Tyler Sloat -- Chief Financial Officer

Yeah, so we're obviously very happy with the year-over-year growth in the subscription revenue. Subscription revenue growth is a lagging indicator of overall ARR growth, which we are happy with as well. But when you look at the sequential trend for subscription revenue from Q1 to Q2, I mentioned there's some things that we should talk about. There are a few non-recurring factors that impacted the numbers that I should explain. First, our fiscal Q2 had 3 more days than Q1. So, we pick up additional revenue, which makes the quarter-over-quarter compare look stronger. For example, if subscription revenue is exactly the same, we would have shown about 4% quarter-to-quarter growth due to those extra days.

Tien Tzuo -- Chief Executive Officer

Three extra days makes that big a difference? I mean, I was surprised.

Tyler Sloat -- Chief Financial Officer

I know, I know. But it's right. It makes that difference. Now, both Q3 and Q4 have the same number of days at Q2, so this will not repeat throughout the year. Second, so I just talked about the days. Second, you may remember we closed our acquisition of Leeyo last year. This quarter, we benefited from the increased recognition of deferred revenue related to RevPro. As a part of M&A accounting, most of the RevPro deferred revenue was eliminated at transaction close and has been building back up as we start to bill these customers. This had a positive impact in Q2.

In fact, we'll continue to see there's impact in our year-over-year growth in the next few quarters. Then third, so third thing, timing of deals. As we often see in Q2, business tends to get done earlier in the summer before people leave on holiday. So, we saw a few more deals close earlier in the quarter as compared to other quarters, so our Q2 deals contributed slightly more to revenue than in a normal quarter.

Tien Tzuo -- Chief Executive Officer

Got it, got it. So, operationally, you get a strong quarter, albeit with some unique factors contributing to our strong subscription revenue?

Tyler Sloat -- Chief Financial Officer

That's right.

Tien Tzuo -- Chief Executive Officer

Okay. Let's talk about revenue from professional services. I saw that it grew 53% year-over-year. Now, that's pretty good, but the year-over-year growth in Q1 was over 100%. So, what's going on there?

Tyler Sloat -- Chief Financial Officer

Yeah, sure. Part of this goes back to the Leeyo acquisition again. Because of that acquisition, our professional services revenues jumped. And so for the last four quarters, we've seen big year-over-year growth numbers because that Leeyo professional services number was not in the prior year compare. But as we hit the one-year anniversary of the acquisition, we're going to see the growth come back into line. In addition, we've been having a lot of professional services revenue relating to helping customers move from ASC 605 to ASC 606. These are existing customers upgrading. That's unrelated to us bringing on new customers. We're pretty much done with that now. That's really starting to dissipate. This is why, as we said on the last call, that quarterly professional services revenue remained relatively flat through this year and will start to grow again in early next year.

Tien Tzuo -- Chief Executive Officer

So, that's the revenue side. Let's transition, let's talk about how we did on the expense side.

Tyler Sloat -- Chief Financial Officer

Yeah, sure. Sure thing. So, we're obviously continuing to invest in the business, which is really important. We have a huge opportunity ahead of us as companies shift into the subscription economy. Our No. 1 goal is to position the goal for sustained, long-term growth. At the same time, we also said we would be disciplined and continue to become more and more efficient with cost and focus on moving toward profitability.

Tien Tzuo -- Chief Executive Officer

That's right. This is one of our key messages on the roadshow.

Tyler Sloat -- Chief Financial Officer

Yeah, and it's really important. And our Q2 numbers really reflect this. So, let me take a minute to touch on a few of the expense highlights I think are important. But before I do that, Tien, before I do that, let me remind everyone that most of the commentary will focus around non-GAAP numbers, which exclude the impact of stock-based compensation, amortization and acquired intangibles, and capitalization of amortization of internal use software. And also, final reminder on the financial impact of the Leeyo acquisition. We closed the transaction on May 31, 2017. And as such, only two months of Leeyo financials were included in Q2 last year.

Tien Tzuo -- Chief Executive Officer

That's a lot of reminders.

Tyler Sloat -- Chief Financial Officer

I know, I know it's a lot of reminders, but I wanted to make sure I got that out before I continue. So, let me go on. Here are the highlights. In general, expenses came in as we had planned, with the exception that we did have some spend that will shift to the back half of the year. We spent a little bit less and that stuff is going to shift into the back half, including a few systems implementations.

Tien Tzuo -- Chief Executive Officer

These are internal systems?

Tyler Sloat -- Chief Financial Officer

Internal systems implementations. So, non-GAAP subscription gross margins improved slightly to 78% in Q2, as we had expected, driven by higher subscription revenue and ongoing efficiencies in our data center spend. Now, in regard to the subscription gross margin, we are really happy with this. But I think the average subscription margin for the first half of the year is more in line with where we will end up for the full year. For professional services, our non-GAAP gross margins for the first half of the year were more or less break even, which is in line with our plan and expectation of how we run that business. Then on an overall non-GAAP operating margin, we improved by 5 percentage points sequentially.

Tien Tzuo -- Chief Executive Officer

So, again, investing for growth and becoming more efficient?

Tyler Sloat -- Chief Financial Officer

That's exactly right. Now, let me give you another example. If you look at our sales and marketing efficiently ratio, which as you know we call our growth efficiency index, this continued to improve as we reduced it to 2.1% in Q2, down from 2.2% in Q1. This is measured by comparing our trailing 12 months, non-GAAP sales and marketing expense versus the year-over-year increase in trailing 12-month subscription revenue. The lower the ratio, the better. We hold ourselves accountable to this efficiency metric and manage the business for ongoing improvement.

Tien Tzuo -- Chief Executive Officer

That is really good. That's really good. So, what about cash? Our free cash flow, I saw, improved compared to the prior quarter.

Tyler Sloat -- Chief Financial Officer

That's right.

Tien Tzuo -- Chief Executive Officer

Now, what do you see for the coming quarter?

Tyler Sloat -- Chief Financial Officer

Yeah. Free cash flow improved by over $2 million versus Q1, with -$7.3 million for Q2. So, a lot of this improvement was driven by stronger collections. We did a great job and the team worked really, really hard there. We had some delays in the number of expenses, which I just talked about. They're going to get pushed off to the second half of the year. then there's some timing of some employee cash disbursements that are in our [inaudible]. They're on our balance sheet. As you mentioned, we'll continue to invest for the remainder of the year and we expect free cash flow for all of fiscal year '19 to be around -$42 million.

Tien Tzuo -- Chief Executive Officer

Got it. How about, I was thinking. There's another metric that we sometimes talk about -- billings. I know this is controversial. We want investors to focus on the trailing 12-month billing number. The quarterly number seems to still get a lot of attention. Why don't you talk to how we think of billings?

Tyler Sloat -- Chief Financial Officer

People love the quarterly number. But first, let me back up. First, I should say historically, calculated billings and actual billings track pretty closely. With calculated billings, computed as in-period revenue plus a change in deferred revenue, so that's the standard example. When it comes to billings, because the quarterly number can fluctuate, Tien, we tell everyone to focus on the trailing 12-month billings number. We believe this will give investors a better sense of how the business is trending over time. So, in Q2, trailing 12 months calculated billings was $228.4 million or 57% growth year-over-year.

If you use professional services revenue as a proxy for professional services billings, which actually lines up pretty closely, this implies calculated trailing 12-month subscription billings of $165.8 million or 42% growth. So, do know that the year-on-year growth numbers are impacted by the inclusion of RevPro starting in Q2 of last year.

Tien Tzuo -- Chief Executive Officer

Okay. So, focused on a trailing 12-month billing.

Tyler Sloat -- Chief Financial Officer

That's right.

Tien Tzuo -- Chief Executive Officer

And then given the impact of the Leeyo acquisition on the year-over-year growth in billings, is there anything you want to say about go-forward expectations?

Tyler Sloat -- Chief Financial Officer

Yeah, sure. So, we're not planning to regularly talk about billings expectations, but given the acquisition impact, I think it's important to provide some color. So, for fiscal '19, this year, we expect calculated billings for the trailing 12 month to grow in the lower 30s percentile. In general, we think trailing 12-month subscription billings will settle over time and kind of align with our long-term growth rates of 25% to 30%.

Tien Tzuo -- Chief Executive Officer

Good. Now, we started touching on some forward-looking numbers. Why don't we summarize our guidance for the rest of the year? What do you think?

Tyler Sloat -- Chief Financial Officer

Yup, let's do it. So, we are two quarters into the year and we've executed well. As I mentioned earlier, we do have some expenses that are being pushed into the second half of the year, but based on all the information we see, here's how the rest of the year looks as we're taking up our projection cycle.

Tien Tzuo -- Chief Executive Officer

All right. Time to take our your pencils.

Tyler Sloat -- Chief Financial Officer

Yup. So, let's start with Q3. For Q3, we're currently expecting total revenue of $58.3 million to $59.3 million; subscription revenue of $42 million to $42.5 million; non-GAAP operating loss of $13.5 million to $12.5 million; and non-GAAP net loss per share of $0.14 to $0.13, and that assumes weighted shares outstanding of approximately 106 million.

Tien Tzuo -- Chief Executive Officer

All right. Now, Tyler, you're really putting this out there. Are you sure with these projections? I mean, don't forget I am out here on the limb with you too.

Tyler Sloat -- Chief Financial Officer

You're on a limb, I'm on a limb. Our employees are on a limb. But based on everything we see, and certainly anything can happen, but the overall economy can get worse and stuff, but we feel really good and this is what we are seeing today.

Tien Tzuo -- Chief Executive Officer

Now, how about for the year?

Tyler Sloat -- Chief Financial Officer

Well, obviously, the change in Q3 is going to ripple through the whole year. So, for the whole year, fiscal '19, we're currently expecting total revenue of $227 million to $230 million; subscription revenue of $163 million to $164.5 million; non-GAAP operating loss of $52 million to $50 million; and non-GAAP net loss per share of $0.61 to $0.59, and that assumes weighted shares outstanding of approximately 91.2 million. So, I got through guidance. We got through most of it. Now, Tien, I'm going to switch it back to you and I have a question, as we get this question a lot from our investors.

Tien Tzuo -- Chief Executive Officer

All right. Fire away.

Tyler Sloat -- Chief Financial Officer

So, Tien, when you think about it and you digest all this stuff and you think about the business that we've built and the market that we're playing, what do you think Zuora's sustainable growth rate is? Or, more importantly, what are your thoughts on sustainable growth for beyond this year and long term?

Tien Tzuo -- Chief Executive Officer

Well, as I said in the beginning, we really see that we have an opportunity to build a long-term, sustainable company, right? And the reason for that is we are the portfolio play on the entire subscription economy. We built the business so companies in all industries around the world can succeed in the subscription economy. But we believe is that we're still in the very early innings of a digital transformation that's going to play out not just over the next few years, but really over the next few decades. So, we expect our long-term growth to grow as the market grows. We see the market growing at 25% to 30% annual growth over a long period of time.

Tyler Sloat -- Chief Financial Officer

Great. Thanks, Tien. I think that pretty much wraps it up. Joon, do you think we should open up the phone lines and let others ask questions now?

Joon Huh -- Vice President, Investor Relations

I think so.

Tien Tzuo -- Chief Executive Officer

Let's do it.

Joon Huh -- Vice President, Investor Relations

All right. Jay, I think we're ready for questions.

Questions and Answers:

Operator

At this time, I would like to remind everyone that in order to ask a question, please press * then the number 1 on your telephone keypad. Your first question comes from Jesse Hulsing with Goldman Sachs. Your line is open.

Jesse Hulsing -- Goldman Sachs -- Analyst

Yeah, thank you. I actually don't have anything, guys. You did a really good job in answering every question.

Tyler Sloat -- Chief Financial Officer

Thanks, Jesse.

Jesse Hulsing -- Goldman Sachs -- Analyst

Tien, one thing that's interesting about your model is you help a lot of newer businesses take off. Whether they're divisions of large, non-tech corporates or professional license companies transitioning into subscriptions, or smaller SaaS companies. I'm curious if you're starting to have conversations with either larger SaaS companies or larger consumer subscription companies, whether they're cable companies or Netflix or someone like that, about replacing their homegrown subscription billing solutions?

Tien Tzuo -- Chief Executive Officer

Yeah, absolutely. We really play in both environments. What you call a rip-and-replace, we're going in, they have a billing solution. Sometimes these are homegrown solutions. Sometimes these are legacy total billing solutions. We're also playing in a green field environment, where maybe it's a launch of a new product or they have a whole bunch of manual processes. If you think back about the continuing story, it's really interesting. When we start off in one group, again, it was small, it was 5% of their revenues. That was more of a green field opportunity. But then we had to go back in talk to the parent company, if you will, into replacing the existing homegrown system that's been in place for a long time, with a new one. Obviously, when I look back on the quarter, there's a healthy mix of both activities.

Jesse Hulsing -- Goldman Sachs -- Analyst

Thanks. That's helpful. And on the inorganic contribution from anniversarying Leeyo, roughly how much did that help out subscriptions and how much do you think it'll help out subscriptions in the second half? Thank you.

Tyler Sloat -- Chief Financial Officer

On the anniversary, as you know, Jesse, that builds back up, right? The deferred revenue goes away and we've been building it back up. We haven't called out exactly how much that's going to add in, but we're getting through it. We'll get through the compares over the next couple of quarters.

Jesse Hulsing -- Goldman Sachs -- Analyst

Thank you.

Operator

Your next question comes from Richard Davis with Canaccord. Your line is open.

Tien Tzuo -- Chief Executive Officer

Hey, Richard.

Richard Davis -- Canaccord Genuity -- Analyst

Hey, thanks. I think you guys have some sort of mind-reading email system because literally as I was working up a question on California Bill 313, I get an inbound email from you guys. So, that's a little bit spooky. But anyway, could you at least --

Tien Tzuo -- Chief Executive Officer

[Inaudible] marketing, right?

Richard Davis -- Canaccord Genuity -- Analyst

It is. Like epic. I don't know. I guess those eyes on the wall are moving around. Anyways, but no, seriously, it is probably a topic that people want to know. Is it a headwind to kind of a subscription economy? I mean, if you could flesh that out, that'd be super helpful. Thanks.

Tyler Sloat -- Chief Financial Officer

Yeah, so, there's a new California legislation that says you got a lot of customers cancel their subscriptions, right? In an online interface. But if you think about it, people say subscriptions have been around forever. But it's not exactly true. When you think about 20-30 years ago, yes, there were things like book-of-the-month club, Columbia House, right? Thirteen CDs for a penny. But we actually have a whole section of the book dedicated to this. But these were relying on lazy customers, right? It's a so-called negative option. Or making it really, really hard for them to cancel.

That's not what the modern subscription economy is about, right? The modern subscription economy is giving customers new freedoms, new capabilities, new power, to do things that they just couldn't do before. I think what you're seeing, whether it's Bill 313 with California, whether it's the changing in accounting rules with ASC 606, it's that as the subscription economy, as these new business models ripple through the fabric of our society, you're going to see that new regulations, new rules, new etiquettes, new policies, new ways of doing business, they'll ripple through it. So, we really just saw this as a positive sign of the importance of this new business model. We think if the new business model is the focus on the customers first, then these are the things that the best companies were always doing anyway.

Richard Davis -- Canaccord Genuity -- Analyst

Got it. Thanks very much.

Operator

Our next question comes from Scott Berg with Needham & Company. Your line is open.

Tien Tzuo -- Chief Executive Officer

Hi, Scott.

Ryan MacDonald -- Needham & Company -- Analyst

Hi, this is Ryan MacDonald on for Scott Berg. Love the new format of the call here. But if you could provide what are some of the main observations that I guess you've had coming out of the user conference in June and have you started to see additional demand for some of the modules beyond the core Billing and RevPro? Any sort of color on that would be great. Thanks.

Tyler Sloat -- Chief Financial Officer

Yeah, I would say if you look at our four core lines of revenue, if you will. We have Billing, we have RevPro. We have up-sell, and that's broken up, as we said on the roadshow, into volume increases and add-on products. What we're probably most excited about but it's probably the most nascent are the add-on products. So, we get a lot of people express interest in our new collect products and a lot of the apps that we have in the connect marketplace.

But our focus is really saying, there's so much green field opportunity there in the subscription economy, let's make sure we continue to focus on new business logos. So, that's why we're going to continue to show the growth in our customer base as represented by the key metric of customers over $100K, because there's a big, big opportunity out there and we need to make sure that we're there. But the user conference obviously is always just an incredibly motivating, incredibly energizing experience to be with our customers. I know they're pretty pumped up about the things that we're doing.

Ryan MacDonald -- Needham & Company -- Analyst

Got it. Then just to make one quick follow-up, I guess. As you're integrating in or working more with some of the DSIs, do you think this helps accelerate business in some of those more non-core tech verticals as well? I know it's about a 50/50 mix right now.

Tien Tzuo -- Chief Executive Officer

Yeah. So, you guys know, right, it's hard to point to a successful multi-billion software company that doesn't have a strong relationship with SIs. And so we do see this as incredibly strategic. I do think it's early days, right? We're not a like-to-like, rip-and-replace, take this client server version on and put the SaaS version in. So, there's a little bit of evangelism, there's a little bit of education that has to happen. So, that takes time to do with the partners.

We kind of point to digital transformation as one of the big areas where the collaboration can be really, really strong. Digital transformation eventually leads to business model transformation. That leads to customer-centric business models. That leads to a new stack that needs to be in place. The story of Deloitte that we wanted to share was when SIs realize that a whole new stack has to go into place to drive these new business models, we have the opportunity to be embedded in these solutions that they recommend and that's really, really exciting.

Joon Huh -- Vice President, Investor Relations

Jay, I think we can move on to the next question.

Operator

Certainly. The next question comes from John DiFucci with Jefferies. Your line is open.

John DiFucci -- Jefferies -- Analyst

Thank you.

Tien Tzuo -- Chief Executive Officer

Hey, John.

John DiFucci -- Jefferies -- Analyst

Hey, guys. I got a question. I think it's probably best for Tyler. It has to do with RevPro. Listen, we understand the catalyst of ASC 606, but Tyler, you and Tien have both talked about a longer term opportunity. Can you talk a little bit more about that? Because this is something that comes up a lot in my conversations. And maybe even in the context of that, talk about it in regards to your current traction with RevPro and the pipeline for the future.

Tyler Sloat -- Chief Financial Officer

Yeah, I can definitely take that one, John. I think we're seeing two things. One, ASC 606 and IFRS 15 was a good driver for customers last year. We talk about 605 and 606 upgrade. But what we're seeing is that companies had a timeline that they had to get compliant and a lot of them chose to do that through some kind of manual Band-Aid process is what we call it. So, we're seeing those guys now, they're past their first iteration but they know it's not sustainable and they're going to need a revenue automation solution or 606 going forward. So, those customers are still out there.

But on top of that, it's all about -- the reason we did the acquisition was not 606. It was about business model complexity that hits both your quote-to-cash solution, as well as your revenue automation. That's really what we're seeing right now, where the Hitachi example that Tien touched on. That's just about just complexity and manual processes. The customer wakes up and they realize they've outsourced all of revenue to some other place and they've got tens and tens of bodies doing this all manually and that's not sustainable. So, that's where I think the long tailwinds are going to be for RevPro.

Tien Tzuo -- Chief Executive Officer

Yeah, I would point you back to the Hitachi Vantara story. I would point back if you visualize, in order to track revenue, which is necessary to close the books and necessary to forecast, 50-60 bodies around the world doing spreadsheets, that's just insane. I mean, I encourage you guys, when you talk to the CFOs of the companies you cover, ask them. Ask them how big is their revenue department? I think you'd be surprised at how much revenue is being done manually. And its not getting better. With these new rules, it's only going to get worse and worse.

Tyler Sloat -- Chief Financial Officer

I mean, the reason we did it, when you see all the laying that comes in through subscription models, layering of all these transaction sets, one of the biggest downstream impacts is to revenue because you have to then put all this stuff together and you have to look at it as one continuous order. I know we've talked about this. That just makes it really, really hard. That's the reason we have the product.

John DiFucci -- Jefferies -- Analyst

If I could, and that's helpful. Because I think a lot of people, including myself at point, just thought well geez, ERP must be doing this. But they haven't been. But I guess that comes to that question. But what about SAP and Oracle, NetSuite, and others? Are they trying to do this at this point? Because now you have a standard, ASC 606, that's supposed to be across all business models and across all geographies. I know there's always a lot of caveats, but I'm just curious. Are you seeing anything on the competitive front from the traditional ERP guys?

Tien Tzuo -- Chief Executive Officer

Yeah, I think maybe -- 606 was definitely a catalyst. But just to reemphasize what Tyler said. It's not really about 606. It's about these dynamic business models. You listen to this story and both stories around Billing and RevPro, there was a scenario of deep-looking contracts and recreating contracts. Canceling contracts. It's not really a contract cancelation. So, ERP systems weren't built for these long-term, time-bound, time-changed, constant-change contracts. And so, you can try to get away with it by simulating, well, look, the contract changed, I'll just create another contract.

But it's not that simple. With 606, now you've got to look at these 5 contracts that these 4 "canceled" ones and the current one and try to figure out what the heck the revenue implications are. And sometimes what the billing implications are. And so, you can continue to tack on more Band-Aids, more patches, more custom code, more people on top of the SAP and Oracle interfaces, but they were just not built, you can't model these new businesses. You experience it in the downstream billing and you experience it in the downstream revenue recognition. But the core of it is the inability to model of how these new business models work.

Tyler Sloat -- Chief Financial Officer

Yeah, John, you're right. They have revenue modules, right? SAP, they have revenue models. But the reality is those modules have been pretty inefficient or insufficient since VSOE 972 came out, which requires VSOE and allocations. Ironically, it's like Oracle is the one who caused that standard to come out and that's what's led to a lot of these manual processes out of system.

But now what we're seeing -- so, even if they have revenue modules, those revenue modules need to be fed with data. And that data needs to come from a system that captures the order. As we see customers come to us who already have Oracle and SAP to use this for quote-to-cash solution, which is Zuora Billing, that's the system that's creating the data. They would've done it already on their current install, but they can't. So, it's going to feed off of itself over time.

John DiFucci -- Jefferies -- Analyst

That's all really helpful. And I'm sorry, I'm going to ask one more. With RevPro, now that you had it for a year, can you talk a little bit about the pipeline? If that's, in fact, validating what you're saying? Which is pretty much that this has legs beyond just 606.

Tien Tzuo -- Chief Executive Officer

Well, we actually know it has legs. But what we like is the fact that we have few flagship products. At any given point in time, you'll see one product surge ahead of the other. Sometimes it's a marketplace catalyst like 606. Sometimes there's more internal break points, right? Growth, skillsets, training processes, and so on and so forth. But having two really allows us to put the right bet and the right growth bets in the right areas.

So, we don't need to predict next year what the mix is going to be. But we've got two horses we're riding on. We've got two horses that we can add salespeople, we can enter into new territories. If you look at RevPro, Leeyo, before we acquired them, was entirely focused on the U.S. We haven't even exploited the international RevPro opportunity yet. So, we're really, really excited about both businesses. What we like the most is the fact that we have two flagship products that we can enter the market with, that we can land new logos with. That allows us to have two options to continue to maintain growth rate in the subscription economy.

John DiFucci -- Jefferies -- Analyst

Great. Thanks, guys.

Tien Tzuo -- Chief Executive Officer

Thanks, John.

Operator

Your next question comes from Stan Zlotsky with Morgan Stanley. Your line is open.

Stan Zlotsky -- Morgan Stanley -- Analyst

Thank you so much. A couple questions from my end. First one, on the 112% revenue retention number. Can you give us a sense for the breakdown of that between just volume growth within your customer base versus up-sell of additional functionality, whether it be new modules or customers moving up to a higher priced performance SKU?

Tyler Sloat -- Chief Financial Officer

Yeah, so Stan, this is Tyler. So, we're not breaking it down. I can say that it is a good mix of all. The transaction volume growth is still really, really strong for us. But it is coupled, also, with really strong retention numbers, right? Which we don't break out our gross retention, but we feel really good about it.

Stan Zlotsky -- Morgan Stanley -- Analyst

Got it. Then just as far as to kind of take it back on John's question just now. How are you thinking about the momentum within RevPro and Leeyo as we get into the back half of this year?

Tien Tzuo -- Chief Executive Officer

Again, we feel good. So, when we look at this, here's a company that's grown significantly as an independent company. They never raised a venture round and so had limited ability to invest and we've been able to invest in that business. Look, when we pull back and you ask yourselves, which company out there really has the most 606 experience, I would bet that it's this team. They've done dozens or scores of 606 imitations. Ask around for all the tech companies that you guys cover, chances are they're using RevPro for revenue recognition. So, that expertise is an asset, especially when we can apply more distribution capability against that product.

Stan Zlotsky -- Morgan Stanley -- Analyst

Got it. If I may just ask on that one, on this last question a quick follow-up. How are you still thinking about RevPro as far as selling it into brand-new logos versus up-selling it into your existing Zuora customers? That's it for me. Thank you.

Tien Tzuo -- Chief Executive Officer

Yeah, no. It's a great question. I kind of take it back to we have a big, big cross-sell opportunity, right? Less than 10% of our customers actually have both products. That being said, we do see both groups as flagship products to land new logos, right? Our philosophy is we should be aiming our distribution capability to bringing new companies on board and the cross-sells will happen. We're already talking to companies on one side and from a timing catalyst perspective, they have needs on the other side.

Stan Zlotsky -- Morgan Stanley -- Analyst

Got it. Thank you.

Tyler Sloat -- Chief Financial Officer

Thanks, Stan.

Operator

Your next question comes from Kevin Kumar with Goldman Sachs. Your line is open.

Tien Tzuo -- Chief Executive Officer

Hey, Kevin.

Operator

Mr. Kumar, your line is open.

Joon Huh -- Vice President, Investor Relations

All right, Jay. I think it might be a bad connection.

Operator

My apologies. There are no further questions.

Joon Huh -- Vice President, Investor Relations

Jay, is there anyone else in the queue?

Operator

There are no further questions at this time, sir.

Joon Huh -- Vice President, Investor Relations

Great. Thank you very much for joining us today. If you have any other questions, please feel free to call or email and we'll see you next time. Thank you.

Tien Tzuo -- Chief Executive Officer

Thank you.

Operator

This concludes today's conference. You may now disconnect.

Duration: 52 minutes

Call participants:

Tien Tzuo -- Chief Executive Officer

Tyler Sloat -- Chief Financial Officer

Joon Huh -- Vice President, Investor Relations

Jesse Hulsing -- Goldman Sachs -- Analyst

Richard Davis -- Canaccord Genuity -- Analyst

Ryan MacDonald -- Needham & Company -- Analyst

John DiFucci -- Jefferies -- Analyst

Stan Zlotsky -- Morgan Stanley -- Analyst

More ZUO analysis

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