OPINION: Over the last 12 to 18 months, Zuora has improved steadily in execution, sales focus, and R&D discipline while implementing stronger cost controls and generating more positive customer feedback. Investment into microservices architecture is allowing for more modular packaging and faster time-to-market. The company is adding lightweight modules for CPQ and a Payment Management component that also provides expanded Collections capability. With the acquisition of revenue recognition specialist Leeyo, Zuora has annexed skilled talent and an attractive client base; it has also presented a significant new offering—RevPro (not rated here)—that falls currently in the sweet spot of customer demand. Zuora’s IPO in April of 2018 debuted to a generally favorable reception from institutions. As of this rating, the company’s component scores are all up except for Finance which reflects a larger EBITDA loss than the pre-IPO estimates. The next few quarters will be a significant test for Zuora as it navigates operating as a public entity and tries to meet or exceed growth expectations. In our view, Zuora has significant headroom for further growth.

USE CASE: Monetization projects that need subscription management with medium transaction volumes and modest to moderate complexity across a spectrum of company sizes (from SME to very large) with billing value of $25 million to $250 million as the sweet spot.

COMPETITORS: Aria Systems, BillingPlatform, goTransverse, Oracle BRM, SAP Hybris Billing

About MGI 360 Ratings: MGI 360 Ratings score is a uniform 0 to 100 supplier rating system comprised of 149 unique data points. The scores condense hundreds of hours of research into simple, easy to understand ratings and recommendations to clearly demonstrate differences amongst software vendors. The overall score is comprised of five equally weighted major categories that account for up to 20 points in Product, Management, Channels, Strategy, and Finance. Learn more about MGI 360 Ratings.