What happened
Shares of Zuora (ZUO -2.01%) climbed 31.3% in April, according to data from S&P Global Market Intelligence. The subscription management company's share price posted substantial recovery after sinking 39.2% in March's trading.
Zuora stock rebounded along with the momentum of the broader market in April. The stock also appears to have gotten a boost from details shared by management during an investor conference call that took place in the middle of the month.
Image source: Getty Images.
So what
On an investor conference call hosted by Jeffries on April 15, CEO Tien Tzuo shared some promising details about how businesses using Zuora's subscription-management services were performing amid the novel coronavirus crisis. Tzuo noted that only between 10% and 12% of the company's customer base saw net subscriber counts decrease in March. He also said that 25% of businesses on its platform saw subscriber acquisition accelerate, and 50% of businesses didn't see any meaningful change.
Now what
Zuora's stock has continued to climb in May. The company's shares are up roughly 6.5% in the month so far.
Zuora is scheduled to report quarterly results after the market closes on June 3. The company reported fourth-quarter earnings in March and laid out a target for first-quarter revenue between $70.5 million and $73 million and a non-GAAP (adjusted) loss per share between $0.10 and $0.11. For the full year, Zuora expects to post an adjusted loss per share between $0.25 and $0.29 on sales between $300 million and $307 million.
Zuora is valued at roughly 4.3 times the average analyst target for this year's sales.
