What happened

Shares of Zuora (NYSE:ZUO) had soared today, up as much as 20% this morning before giving back much of those gains, after the company reported fiscal first-quarter earnings. As of 12:30 p.m. EDT, the stock is up just 3%.

So what

Revenue in the first quarter increased 15% to $73.9 million, which topped the consensus estimate of $70.7 million in sales. That resulted in an adjusted net loss of $7.5 million, or $0.06 per share, which was also better than the $0.10 per share in adjusted losses that analysts were expecting. Customers with annual contract value (ACV) of $100,00 or more grew to 643, while dollar-based retention rate was 103%.

Icons and "Subscribe" over a tablet

Image source: Getty Images.

"We had another healthy quarter of growth despite the challenges arising from the pandemic," CEO Tien Tzuo said in a statement. "Moments like these truly highlight the resilience of having a subscription revenue business, both for us and for our customers."

Now what

Due to ongoing macroeconomic uncertainty related to the COVID-19 pandemic, Zuora is withdrawing its full-year guidance that it had previously issued in March. The company, which provides tools for other businesses to transition to a subscription model, did provide guidance for the second quarter.

Revenue is expected to be $72.5 million to $75 million, compared to Wall Street's expectation of $74.5 million in sales. That should translate into an adjusted net loss per share of $0.07 to $0.08, roughly in line with the consensus estimate of $0.08 per share in adjusted net losses.