REDWOOD CITY, CA – Zuora Inc . (NYSE:ZUO), a cloud-based software company, announced the results of its 2024 Annual Meeting of Stockholders held on Thursday. The meeting saw the election of three Class III directors and the ratification of the company’s independent auditor, among other proposals.
Stockholders elected Kenneth A. Goldman, Joseph Osnoss, and Tien Tzuo to serve as Class III directors on the Board of Directors until the 2027 annual meeting. Goldman received 140,901,662 votes in favor, Osnoss 130,716,098, and Tzuo 144,157,868. There were 30,885,822 withhold votes for Goldman, 41,071,386 for Osnoss, and 27,629,616 for Tzuo, with 31,527,221 broker non-votes for each candidate.
In addition, stockholders ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2025, with an overwhelming 201,327,386 votes for and 1,128,302 against.
Furthermore, the amendment and restatement of Zuora’s Restated Certificate of Incorporation to allow for exculpation of certain officers from personal liability under Delaware law was approved with 166,743,512 votes for and 4,281,914 against.
Finally, the issuance of the maximum number of shares of Class A common stock upon conversion of $400 million aggregate principal amount of Convertible Senior PIK Toggle Notes due 2029 and exercise of warrants to acquire up to 7,500,000 shares was approved with 167,803,909 votes for and 3,172,826 against.
The stockholder meeting had a quorum with 121,680,935 shares of Class A common stock and 8,163,377 shares of Class B common stock present in person or by proxy. Each share of Class A common stock represented one vote, while each share of Class B common stock represented ten votes.
In other recent news, Zuora Inc. has reported a 10% year-over-year increase in subscription revenue for its first quarter of the fiscal year 2025, reaching an all-time high in adjusted free cash flow. This comes alongside the company's announcement of its intention to acquire Sub(x), an AI technology provider for digital publishing and media companies. The acquisition, expected to close by Zuora's third fiscal quarter of 2025, aims to enhance Zuora's paywall capabilities using AI to optimize subscriber acquisition and retention.
In addition, Baird has increased its price target for Zuora shares to $10.00, maintaining a neutral rating despite the company's solid performance in the recent quarter. Furthermore, Lake Street Capital Markets has raised its price target for Zuora to $13.00, reiterating a buy rating, based on the company's strong cash generation and operational efficiency.
These recent developments follow Zuora's strategy to provide a comprehensive monetization suite that adapts to customer demand with flexible models, including subscription bundles and usage-based pricing. The company also plans to continue driving higher operating income and free cash flow. Zuora's focus on expanding its install base, cross-selling, and regional growth has proven to be successful, despite a slowdown in new logo acquisition due to macroeconomic challenges.
InvestingPro Insights
In light of Zuora Inc.'s recent stockholder meeting, investors may find the following metrics and tips from InvestingPro valuable for assessing the company's financial health and future prospects. Zuora holds a market capitalization of approximately $1.46 billion and has demonstrated a gross profit margin of 69.05% over the last twelve months as of Q1 2025, highlighting its ability to retain a significant portion of revenue after accounting for the cost of goods sold. Additionally, the company's revenue growth was 7.97% during the same period, showing a steady increase in its earnings.
Two InvestingPro Tips that stand out for Zuora are that the company currently holds more cash than debt on its balance sheet, which is a positive sign of financial stability, and that analysts predict the company will be profitable this year, indicating potential for future growth. These insights could be particularly relevant for investors considering the recent approval of significant corporate actions during the annual meeting.
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