Bullish options flow was detected in ZUO stock on September 18, 2020.
Make sure to review this lesson on options trading so that you understand the chart above.
Zuora provides the leading cloud-based subscription management platform that functions as a system of record for subscription businesses across all industries. Powering the Subscription Economy®, the Zuora platform was architected specifically for dynamic, recurring subscription business models and acts as an intelligent subscription management hub that automates and orchestrates the entire subscription order-to-revenue process seamlessly across billing and revenue recognition. Zuora serves more than 1,000 companies around the world, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom. Headquartered in Silicon Valley, Zuora also operates offices around the world in the U.S., EMEA and APAC.
On September 3, 2020, ZUO stock plunged more than 32% after reporting earnings and revenue. Zuora reported Q2 adjusted EPS of 0c versus the consensus estimate of (7c). The company reported Q2 revenue of $75M versus the consensus estimate of $73.47M.
“We reported solid results in the second quarter as we continue to help our customers thrive by providing them with the agility, insight and automation needed to navigate an uncertain economic environment,” said Tien Tzuo, founder and CEO of Zuora. “The demand for subscription business models remains strong and we continue to build the foundation for Zuora to lead the market for years to come.”
What caused ZUO stock to plunge was the Q3 outlook. Zuora forecasted Q3 adjusted EPS of -4c to -5c where the consensus is -5c. But what really hurt the stock was the revenue forecast of $73M to $75M which is below the consensus forecast of $75.55M.