Zuora Inc (NYSE:ZUO) Q4 2019 Earnings Conference Call Transcript

Mar 21, 2019 • 05:00 pm ET

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Zuora Inc (NYSE:ZUO) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Chantal, and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora Fourth Quarter and Full Year Fiscal 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator instructions) Thank you.

I will now turn the call over to Joon Huh, VP of Investor Relations. You may begin your conference.

Executive
Joon Huh

Thanks, Chantal. Good afternoon and welcome to Zuora's fourth quarter and full year fiscal 2019 earnings conference call. Joining me today are Tien Tzuo, Zuora's Chief Executive Officer; and Tyler Sloat, Zuora's Chief Financial Officer. The purpose of today's call is for us to provide some color on our fourth quarter and full year results, as well as provide our financial outlook for the upcoming quarter and fiscal year 2020. Some of our discussion and responses today will include forward-looking statements. So as a reminder, our actual results could differ materially as a result of a variety of factors. You can find information regarding those factors in the earnings release we issued today, and the most recent 10-Q filed with the SEC.

Now, I do want to call out one item for this quarter and that's ASC 606. As of February 1, 2019, we've adopted the new revenue recognition standard, ASC 606, and we're adopting it using the full retrospective method, and we're using our own RevPro product to do so. To make sure you can do the year-over-year comparisons, I want to highlight a few points on the full retrospective method. First, we're providing the historical numbers under ASC 605 today. Second, we're giving our forward-looking guidance under both, ASC 606 and ASC 605. And third, starting next quarter, there will be no more ASC 605, we'll only present numbers under ASC 606. We'll also provide all the retrospective numbers under ASC 606. This approach will minimize the time where you have to deal with two sets of numbers.

Finally, we'll be referring to several non-GAAP financial measures today, and reconciliations to the related GAAP measures are included in our earnings release. For a copy of our earnings release, links to our SEC filings, a replay of today's call, or to learn more about Zuora, please visit our Investor Relations website at investor.zuora.com.

And with that, let me turn the call over to Tien.

Executive
Tien Tzuo

Thank you, Joon. Welcome to our fourth quarter and our fiscal '19 earnings call. Q4 was another strong quarter and a fantastic finish to the year. We grew our subscription revenues by over 35% year-over-year as we continue to execute against our business model, and our total revenue now puts us at an annual run rate of over $0.25 billion. This is also our fourth call as a public company. Yes, it's now been almost a full year since we went public, and what a difference a year makes.

Most of you know our vision;