Zuora Inc (NYSE: ZUO) reported better-than-expected earnings for its second quarter, but issued weak guidance for its third quarter.
The San Mateo, California-based cloud-based company reported total revenue was $57.8 million, an increase of 47% year-over-year.
Subscription revenue was $41.5 million, an increase of 44% year-over-year.
GAAP loss from operations was $18.2 million, compared to a loss of $15.0 million in the second quarter of fiscal 2018.
Non-GAAP loss from operations was $12.3 million, compared to a non-GAAP loss from operations of $12.6 million in the second quarter of fiscal 2018.
For the third quarter of fiscal 2019, the Company currently expects total revenue of $58.3 to $59.3 million; Subscription revenue of $42.0 to $42.5 million; Non-GAAP loss from operations of $13.5 to $12.5 million.
"With every day that passes, more and more companies are joining the Subscription Economy," said Tien Tzuo, founder and CEO of Zuora. "As the leader in this market, we produced strong second quarter results across the board, executing our business model designed for long-term sustainable growth."
Zuora provides the leading cloud-based subscription management platform that functions as a system of record for subscription businesses across all industries.
Powering the Subscription Economy, the Zuora platform was designed and built specifically for dynamic, recurring subscription business models and acts as an intelligent subscription management hub that automates and orchestrates the entire subscription order-to-cash process, including billing and revenue recognition.
Shares in Zuora retreated $5.65, or 16.6%, to $28.37, within a 52-week trading range of $18.75 to $37.78.
