Zuora (ZUO) Gross Margin % : 67.21% (As of Oct. 2024)

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What is Zuora Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zuora's Gross Profit for the three months ended in Oct. 2024 was $78.6 Mil. Zuora's Revenue for the three months ended in Oct. 2024 was $116.9 Mil. Therefore, Zuora's Gross Margin % for the quarter that ended in Oct. 2024 was 67.21%.

The historical rank and industry rank for Zuora's Gross Margin % or its related term are showing as below:

ZUO' s Gross Margin % Range Over the Past 10 Years
Min: 50.38 Med: 57.18 Max: 67.42
Current: 67.42

During the past 9 years, the highest Gross Margin % of Zuora was 67.42%. The lowest was 50.38%. And the median was 57.18%.

ZUO's Gross Margin % is ranked better than
76.85% of 2618 companies
in the Software industry
Industry Median: 41.435 vs ZUO: 67.42

Zuora had a gross margin of 67.21% for the quarter that ended in Oct. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zuora was 5.60% per year.

Zuora Gross Margin % Historical Data

The historical data trend for Zuora's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zuora Gross Margin % Chart

Zuora Annual Data

Trend

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

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51.39

57.18

59.59

61.31

65.95

Zuora Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Gross Margin %	Get a 7-Day Free Trial															68.11	66.73	68.06	67.68	67.21

Competitive Comparison of Zuora's Gross Margin %

For the Software - Infrastructure subindustry, Zuora's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Zuora's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Zuora's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zuora's Gross Margin % falls into.

Zuora Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Zuora's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	284.7	/	431.661
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(431.661 - 146.974)	/	431.661
	=	65.95 %

Zuora's Gross Margin for the quarter that ended in Oct. 2024 is calculated as

Gross Margin % (Q: Oct. 2024 )	=	Gross Profit (Q: Oct. 2024 )	/	Revenue (Q: Oct. 2024 )
	=	78.6	/	116.929
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(116.929 - 38.337)	/	116.929
	=	67.21 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Zuora (NYSE:ZUO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Zuora had a gross margin of 67.21% for the quarter that ended in Oct. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Zuora Gross Margin % Related Terms

Thank you for viewing the detailed overview of Zuora's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Zuora Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Zuora Inc (NYSE:ZUO) » Definitions » Gross Margin %

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Traded in Other Exchanges

0XL5:UK 2ZU:Germany

Address

101 Redwood Shores Parkway, Redwood City, CA, USA, 94065

Website

https://www.zuora.com

Zuora Inc provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The firm offers a Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition. Its products include Zuora Billing, Zuora Revenue, Zuora Payments, Zephr, Zuora Platform, and other software that support and expand upon the core offerings. Geographically, it derives a majority of its revenue from the United States.

Executives

Peter Hirsch	officer: Chief Product & Tech Officer	C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, PLEASANTON CA 94588
Matthew R Dobson	officer: Chief Accounting Officer	C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Tien Tzuo	director, 10 percent owner, officer: See Remarks	C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Robert J. Traube	officer: Chief Revenue Officer	C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Andrew M. Cohen	officer: CLO and Corp. Secretary	C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Todd Mcelhatton	officer: Chief Financial Officer	101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Amy Guggenheim Shenkan	director	C/O RITCHIE BROS. AUCTIONEERS INC., 9500 GLENLYON PARKWAY, BURNABY A1 V5J 0C6
Kenneth A Goldman	director	C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Sri Srinivasan	officer: Chief Product & Tech Officer	C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Laura A. Clayton	director	C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Silver Lake Alpine Associates Ii, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sla Zurich Gp, L.l.c.	director, 10 percent owner	C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slaa Ii (gp), L.l.c.	director, 10 percent owner	C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sla Zurich Aggregator, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sla Zurich Holdings, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025