Zuora down on disappointing forecast

Zuora

25/08/2022 11:55

** Shares of cloud-based software firm Zuora Inc  ZUO.N 
down 5.6% at $8.44 in premarket trading 
    ** Co on Wednesday forecast Q3 revenue between $99.5 mln and
$101.5 mln, compared to Refinitiv ests of $103.7 mln
 urn:newsml:reuters.com:*:nBw8pX90Va
    ** Also announced plans to acquire London-based co Zephr for
$44 mln in cash, plus an earnout consideration of up to $6
mln urn:newsml:reuters.com:*:nBw8Qj5wqa
    ** Jefferies cuts PT by $1 to $10, while Berenberg cuts it
to $20 from $22
    ** "We highlight that in a tougher macro environment, apps
spend may tighten, and it will be harder for ZUO to capture new
logos given its relatively longer implementation timelines" -
Jefferies
    ** Berenberg says FX is having a negative impact due to co's
 pronounced international exposure; however, it views the weak
guidance for the year as transitory
    ** Avg. rating of 5 analysts is "buy"; median PT is $22 -
Refinitiv data
    ** As of last close, stock fell ~52% this year

 (Reporting by Tiyashi Datta in Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))