OPINION: Since our last assessment, Zuora has rolled out the Zuora Collect product and exhibited new synergy following the relatively successful absorption of the Leeyo Automated Revenue Management product, increasing Zuora’s Product score from 12.62 to 12.84. It’s Management score went up from 13.33 to 14.35 as its team demonstrated good execution during and post-IPO, improved cohesion and alignment, and the addition of quality managerial talent across the board. Zuora’s Channels score also rose from 11.98 to 12.11 as a result of higher sales productivity. Its Strategy and Finance scores remain unchanged. The entry of Salesforce into the Agile Billing market will likely put more pressure on the company in some market segments. However, it could have a net positive effect for Zuora as Salesforce is likely to invest heavily into marketing in this space, drawing more attention to all players. In comparison to Salesforce’s nascent product, the Zuora solution is broader, deeper, more mature, and backed by a more seasoned team. The next few quarters will continue to test the Zuora management team’s direction of growth and talent in a competitive landscape as well as its ability to delight both customers and investors. In our view, Zuora still has a significant growth opportunity.
USE CASE: Monetization projects that need full-spectrum subscription management with moderate transaction volumes and low to medium complexity across a range of company sizes (from SME to very large) with billing values of $25 million to $1 billion as the sweet spot.
COMPETITORS: Aria Systems, BillingPlatform, BluLogix, goTransverse, Oracle BRM, RecVue, Salesforce.com, SAP Billing