What happened

Shares of Zuora (NYSE:ZUO) rose on Thursday after the subscription software company reported its second-quarter results. Zuora beat analyst estimates on all fronts, and raised its guidance for the full year. The stock was up about 9.2% at 11:10 a.m. EDT.

So what

Zuora reported second-quarter revenue of $69.7 million, up 21% year over year and nearly $3 million higher than the average analyst estimate. Revenue from subscriptions went up 24% to $50.6 million, while revenue from professional services jumped 12.5% to $19.1 million.

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The total transaction volume run through Zuora's platform was up 35% year over year to $10.1 billion, while the number of customers with annual contract value greater than $100,000 grew 19% to 566. Zuora's dollar-based retention rate, which measures revenue expansion among existing customers, was 107%.

Non-GAAP (adjusted) earnings per share came in at a loss of $0.09, up from a loss of $0.12 in the prior-year period and $0.05 better than analysts were expecting. The company lost $0.19 on a GAAP basis, worse than an $0.18 loss in the second quarter of last year.

"We made progress with operational execution, product innovation and launched our Zuora Central Platform, all focused on delivering durable, long-term growth," said CEO Tien Tzuo in the earnings release.

Now what

Zuora expects third-quarter revenue between $69 million and $71 million, along with a non-GAAP EPS loss between $0.10 and $0.19. For the full year, the company expects revenue between $273.5 million and $278.0 million and a non-GAAP EPS loss between $0.38 and $0.40.

Previously, Zuora had guided for full-year revenue between $268 million and $278 million and a non-GAAP EPS loss between $0.40 and $0.44.

With Zuora beating expectations and raising its guidance for the year, the stock was trending higher Thursday morning.

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