What happened

Shares of subscription-management platform Zuora (NYSE:ZUO) tumbled on Friday, falling about 15% as of 11:41 a.m. EDT.

The stock's decline followed Zuora's fiscal 2019 fourth-quarter update, which featured strong growth but also included weaker-than-expected revenue guidance.

A chalkboard sketch of a chart showing a stock price moving lower.

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So what

For its fourth quarter, Zuora saw its revenue rise 29% year over year to $64.1 million. Subscription revenue rose 35% year over year to $46.7 million. Meanwhile, Zuora's non-GAAP net loss widened from $10.3 million in the fourth quarter of fiscal 2018 to $11.5 million in the fourth quarter of fiscal 2019.

Strong growth was helped by a 27% year-over-year increase in customers with an annual contract value of $100,000 or greater.

But Zuora's guidance for first-quarter revenue disappointed.

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Now what

Under Zuora's new revenue recognition standard, ASC 606, Zuora guided for first-quarter revenue between $63.5 million and $64.5 million. This equates to $65 million to $66 million under the company's previously used revenue recognition standard, ASC 605 -- the standard analysts likely based their forecast on.

Analysts, according to data from Yahoo! Finance, were expecting fiscal first-quarter revenue of $65.6 million -- higher than the midpoint of Zuora's fiscal guidance range for the metric.

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