Market

Company

Zuora

Date

Select Date

    Zuora

    A

    SCORE: 60

    PEER AVERAGE: 53

    OUTLOOK: Positive

    LETTER GRADE*

    A

    SCORE**

    60

    PEER AVERAGE

    53

    OUTLOOK

    Positive

    Summary

    We raise the MGI360 Rating of Zuora RevPro in the Revenue Recognition market from 52 to 59. RevPro addresses a key pain point for customers across a spectrum of industries, company sizes and life stages by helping manage complex revenue allocation and recognition requirements, reduce risk of audit failure, accelerate financial close and reduce revenue leakage. We expect the demand for revenue recognition tools to accelerate driven by US and international regulation. Current core financial software providers such as Oracle, SAP and Netsuite among others have gaps in RevRec functionality that are likely to persist. RevPro can operate either as a plug-in component into a GL system or as a standalone GL subledger. Company is self-funded and sells its solution via a small (4 person) direct sales channel as well as marketing alliances with firms such as E&Y, Zuora and Oracle.

    Ideal Use Case

    RevPro is a strong candidate for firms selling a complex mix of physical and digital goods and services to a B2B audience.

    Company Description

    Leeyo (acquired by Zuora) was founded in 2009 to provide management of complex revenue recognition. The company core product – RevPro can support both cloud and on-premise deployments. With over 130 employees split about 50/50 between Silicon Valley and Chennai, India company through a small direct sales force services over 70 customers with about half using the SaaS product. In 2015 Leeyo is projected to grow from about $12Mil in revenue (MGI st.) by over 100%. We estimate that the company generates about $1Mil in EBITDA with a gross margin that is evolving from an on-prem model to model that blends SaaS and implementation services.