What happened

Shares of Zuora (ZUO -1.58%) shed more than a third of their value last month, according to data provided by S&P Global Market Intelligence, after the subscription management software maker slashed its full-year guidance.

So what

Zuora's revenue rose 22% year over year to $64.1 million, which was in line with Wall Street's expectations. Its adjusted net loss per share of $0.11, meanwhile, bested analysts' estimates for a loss of $0.13. 

However, during a conference call with analysts, CEO Tien Tzuo said that Zuora would be making changes to improve its sales execution. Tzuo highlighted the need to strengthen the company's ability to cross-sell new products and help its newer salespeople achieve productivity levels on par with its more experienced staff. "We continue to be excited by the healthy demand for subscription business models, but we are making changes to our sales approach to scale the business to the next level, which tempers our expectations for the remainder of the year," Tzuo said in a press release. 

In turn, Zuora cut its fiscal 2020 revenue guidance to between $268 million and $278 million, down from a prior forecast of $289 million to $293.5 million, and well below the $292 million analysts had been expecting. 

A chalk drawing of an upward-sloping line that was erased and replaced with a downward-sloping line.

Investors headed for the exits after Zuora reduced its revenue growth guidance. Image source: Getty Images.

Now what

Zuora's shares have rebounded about 5% so far in June. Investors may be beginning to shift their focus from the company's near-term struggles to its immense long-term growth opportunity -- as a leading software supplier to subscription-based businesses that generate more than $400 billion in annual sales in the U.S. alone. 

And with shares still about 30% cheaper than they were just a few weeks ago, patient investors may want to consider using the stock's sell-off as a chance to pick up some Zuora stock at a discount.