Peter Hirsch, Chief Product & Tech Officer at Zuora Inc . (NYSE:ZUO), recently sold 18,855 shares of the company's Class A common stock. The transactions, executed on October 15, were completed at a weighted average price of $9.0591 per share, resulting in a total sale value of approximately $170,809. Following these sales, Hirsch retains ownership of 19,279 shares in the company. These transactions were conducted under a 10b5-1 trading plan, which Hirsch adopted on March 15, 2024. The sale prices ranged from $8.95 to $9.20 per share.
In other recent news, enterprise software company Zuora Inc. reported robust financial results for the second quarter of fiscal year 2025, with a notable 9% year-over-year increase in subscription revenue, totaling $104 million. The company also posted a record non-GAAP operating income of $25.6 million, surpassing expectations. In addition to these achievements, Zuora announced strategic acquisitions aimed at enhancing its AI capabilities and underscored the success of its land and expand strategy, as evidenced by growth and customer expansion with Zillow Group (NASDAQ:ZG) and Oura.
Zuora's Q3 subscription revenue is projected to be between $104.5 million and $105.5 million. The full fiscal year subscription revenue is forecasted to be $414.5 million to $416.5 million, with non-GAAP operating income expected to be between $90 million and $93 million. The company anticipates an adjusted free cash flow of $82 million or more for the full year.
However, the company reported a decrease in professional services revenue by 10% to $11.3 million. The Dollar-based retention rate remained flat quarter-over-quarter and decreased three points year-over-year. Despite these challenges, Zuora has shown resilience and strategic progress in a challenging business environment, with a focus on subscription revenue growth, bolstered by its land and expand strategy and acquisitions. These are the recent developments in the company's business operations.
InvestingPro Insights
To provide additional context to Peter Hirsch's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Zuora Inc. (NYSE:ZUO).
According to InvestingPro data, Zuora's market capitalization stands at $1.42 billion. The company's revenue for the last twelve months as of Q2 2025 was $445.68 million, with a growth rate of 7.33%. This moderate growth aligns with the company's position in the subscription management software market.
An InvestingPro Tip indicates that Zuora holds more cash than debt on its balance sheet, which is a positive sign for the company's financial stability. This strong liquidity position is further supported by another tip stating that Zuora's liquid assets exceed its short-term obligations. These factors may provide some reassurance to investors in light of the insider sale.
It's worth noting that while Zuora is not currently profitable over the last twelve months, analysts predict the company will be profitable this year. This expectation is reflected in the InvestingPro Tip that net income is expected to grow this year. Additionally, four analysts have revised their earnings upwards for the upcoming period, suggesting a potentially positive outlook.
For investors considering Zuora's stock, it's important to be aware that the stock price movements are quite volatile, as highlighted by another InvestingPro Tip. This volatility could explain why insiders might choose to sell shares at certain price points.
InvestingPro offers 9 additional tips for Zuora, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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