Zuora Inc (NYSE:ZUO) Q2 2021 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 05:00 pm ET


Zuora Inc (NYSE:ZUO) Q2 2021 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Zuora Second Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Joon Huh, Vice President of Investor Relations. Please go ahead.

Joon Huh

Thank you. Good afternoon, and welcome to Zuora's second quarter fiscal 2021 earnings conference call. Joining me today are Tien Tzuo, Zuora's Chief Executive Officer; and Todd McElhatton, Zuora's Chief Financial Officer. The purpose of today's call is for us to provide some color on our second quarter results, as well as provide our financial outlook for the upcoming quarter. 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 our most recent filings with the SEC. Finally, we'll be referring to several non-GAAP financial measures today, and reconciliations to related GAAP measures are included in our earnings release. Please note that in Q2, we began to exclude litigation charges and benefits outside of the ordinary course of business from our non-GAAP financial measures. 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 it over to Tien.

Tien Tzuo

Thanks, Joon, and thank you, everyone, for joining us today on Zuora's second quarter earnings call for fiscal 2021. Let me start the call by saying that we hope you are staying safe and healthy. The current pandemic is creating a challenging environment for lots of people, trying to manage jobs and families from home. Here in California, we are also very grateful to all the first responders on the frontlines of the fires in the Bay Area. As a company, Zuora remains committed to supporting our customers, partners, employees, and other stakeholders through these times. So against this backdrop, I am pleased with our second quarter results. We performed well compared to our expectations from a quarter ago.

We came in at the high end of our revenue guidance and well ahead on profitability. We effectively managed our cash spend, driven partially by strong collections activity. We helped 41 of our customers to go live in the quarter, indicating our customers have continued to adopt our platform during the COVID crisis. We added new customers in our core markets of high tech, media and manufacturing while also seeing interest from industries such as education in the public sector, as the Subscription Economy continues to expand. And we strengthened our leadership team with the addition of Todd McElhatton as our CFO. I'm personally incredibly excited to have him on board and joining me on this call. Going beyond the immediate results, when I look at