What happened
Shares of subscription-management platform Zuora (ZUO 2.87%) tumbled on Friday, falling 22.7% as of 12:12 p.m. EDT.
The stock's decline came after Zuora reported its fourth-quarter and full-year results on Thursday afternoon. Though revenue increased 11%, the top-line figure didn't quite live up to investors' expectations. In addition, the company announced that its CFO was resigning; this may have spooked investors as well.
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So what
Zuora's fourth-quarter revenue jumped 11% year over year to $70.4 million. Analysts, on average, were expecting revenue of $71.95 million. The tech company's non-GAAP (adjusted) loss per share was $0.09 -- slightly beating analysts' average estimate of an adjusted loss per share of $0.10.
Fueling the quarter was a 21% year-over-year increase in subscription revenue. Total subscription revenue during the period was $54.6 million.
"We saw solid execution in the fourth quarter and made meaningful progress on our key initiatives focused on capturing more of the upmarket opportunity," said Zuora founder and CEO Tien Tzuo.
Now what
Zuora said that as of April 5, the company's current CFO would resign to take an executive position at another company. Zuora is actively recruiting a CFO, but in the meantime, it has established an "Office of the CFO," which consists of some of the company's senior finance leaders and a board member to serve in an advisory role for the team.
