Zuora Outperforms ERP Vendors

Fools:

When I posted my ZUO: Deep Dive (here: https://discussion.fool.com/another-look-at-zuo-34110062.aspx) I received some questions about competition. As a follow-up, this recent report suggests that Zuora continues to be the software platform of choice for companies transitioning to a subscription based model. The excerpt below also provides a succinct summary of what Zuora does, for those new to the company.

Zuora Outperforms ERP Vendors as the System of Record for the Subscription Economy

Companies with legacy ERP systems designed for a product economy are finding these new recurring revenue models are growing with lots of dynamic change that creates downstream pain for all roles in the finance organization. “The reason that traditional ERP systems are not able to fill the capability void in billing stems from their fixed, often brittle, and coarsely granular approach to anything outside general ledger,” wrote authors of the MGI Research report.

“This creates a need for a modern platform that can connect an organization’s front facing CRM system with their backend ERP finance system to automate all order-to-revenue processes in the Subscription Economy,” said Andrew Dailey, Managing Director at MGI Research.

According to the report, “Agile Billing becomes an agenda item when organizations realize that they can no longer match their competition in terms of time-to-revenue, when they are unable to offer flexible new pricing plans and when their ability to accurately invoice, collect, report, disclose and forecast revenue is in question.”

“In the Subscription Economy, finance organizations must adopt a new system that enables them to evolve their pricing, billing, collections, and revenue accounting – all while removing operational inefficiencies and driving more efficient growth. That’s why we’re seeing the rise of a third cloud between CRM and ERP to address the growing needs of companies seeking growth in the Subscription Economy,” said Tom Krackeler, SVP of Products at Zuora.

And compared to other SaaS-based solutions in the market, the authors of the report stated, “Zuora brand visibility, funding, pure-cloud architecture, deployment methodology, and size of channel separate Zuora from the rest of the next-generation, SaaS-only suppliers. When compared to the early entry by Salesforce, the Zuora solution is broader, deeper, more mature and backed by a more seasoned team.”

Finally, when you watch the deployment of Zuora’s software across a broad and diverse set of players in many different industries, you can begin to see how investing in SaaS companies can actually diversify your portfolio, not concentrate it. Take a look at the companies that use ZUO’s platform:

Zuora works with customers from every industry. Here are a few of them.

B2C

Air

Arrow

Autodesk

Brother

Busuu

CarGurus

Clear

DAZN

DocuSign, Inc.

Eclipse Internet

Ericsson

Ford

FT

GDF Suez SA

General Electric

givezooks!, Inc.

Guardian News and Media

HBO Nordics

Headspace

Hive

HomeAway

Houzz

Inspirato

Intuit Inc.

Kaplan

Local Corporation

Lynda.com

MINDBODY

MLSListings

Moz, Inc.

News UK

Prezi

Rogers

SnagAJob.com, Inc.

Surf Air

SurveyMonkey

Symantec

Telecom Corp of New Zealand

Telegraph Media Group

Thync

Time Inc (UK)

Touring Club Schweiz AG

TripAdvisor

Trivago

Trulia

Ustream

Vivint, Inc.

WorthPoint

Xplornet

YP.com

Zillow Group

Cloud Applications

Acquia

AppFolio

Appointment-Plus

Autodesk

Bamboo Rose

BetterCloud

BlackLine Systems, Inc.

BlueFolder

BoomTown

Box

Brandwatch

Buildium

Chartbeat

Deputy

DocuSign, Inc.

easyDITA

eFolder

Emma, Inc.

eMoney

Falcon.io

Fivestars

freee K.K.

Guidebook Inc.

Halogen Software Inc.

HasOffers

Hodges-Mace, LLC

HomeAway

HookLogic, Inc.

Houzz

HTK

Imperva

InsideView

Intuit Inc.

Intuit QuickBase

Invoca

Juwai

Klipfolio

landslide CRM

Lever

Litmus

LivePerson

Marketo

Memeo Inc.

MINDBODY

Moz, Inc.

MSC Software

nomadesk

Okta

Pluralsight

powerReviews

Prezi

Primedia

Procore

Rearden Commerce

Riskalyze

S&P Global

Sage

Shopkeep

Site9 – Protoshare

Smarsh

SmartLinx Solutions

SMTP

Stackdriver

StackPath

SurveyMonkey

Swiftpage

Symantec

Terapeak

TerrAvion

TimeTrade Systems, Inc.

TrackVia

Trulia

uKnow

Untangle

Viewpath

Webinterpret S.A.S.

weVideo

Yext

Zello

Zendesk

Zoom

Zurple

Cloud Infrastructure

Acxiom Corporation

Autotask

Bandwidth.Com, Inc.

BigCommerce

Blue Coat Systems

Carbonite

CloudBees

CollabNet

Dyn

FireHost, Inc.

Flip.to

GoGrid

Hosting

Hostway Corporation

Informatica

Infrascale

Jimdo

Jitscale

Joyent Inc.

Keep It Safe

Malwarebytes

MJ Freeway

MuleSoft, Inc.

Neustar

Right Networks

RightScale Inc.

SendGrid

Servcorp

Solar Winds

SugarSync

Tintri

Workshare

Zetta

Communications

A10 Networks

Alcatel-Lucent Enterprise

Blue Jeans Network

Brocade

Ericsson

Gradwell

Pexip

Qualcomm Vuforia

Rogers

Sierra Wireless France

SkyRiver Communications

Telecom Corp of New Zealand

Unify

Versature

Vocalocity, Inc.

Xplornet

Education

BizLibrary

Busuu

EMyth

Focus-N-Fly Inc.

Hobsons

Kaplan

Learning.com

Lynda.com

Mindflash Technologies

Mindvalley

Netchemia

Safari Books Online

Sally Ride Science

Healthcare

Availity

Carena

Connecture

Illumina

LifeTechnologies

Medrio

Modernizing Medicine

Perfect Patients

Sycle

Visiomed

Internet of Things

Alertme

Arrow

Autonet Mobile

BI Incorporated

Briggs & Stratton Corporation

Brother

Ford

General Electric

Hive

Lytx (DriveCam)

NCR

Neopost SA

PTC

PubNub

Qualcomm

Schneider Electric

Thermo Fisher

Topcon

Vivint, Inc.

Media

AT&T Adworks

Avid Technology, Inc.

CarGurus

DAZN

Deloitte

Devex

Fairfax Media Limited

FT

Guardian News and Media

HBO Nordics

IPC Media

News UK

Ooyala

Own Zones

Reed Business Information

Stansberry Investment Research

Sysomos

Telegraph Media Group

The Enthusiast Network

The Seattle Times

Thomas Publishing

Time Inc (UK)

Ustream

Whitepages.com

Yellow Media Inc

YP.com

Zillow Group

Other

BAE Systems Applied Intelligence Ltd

Willis Towers Watson

YMCA of Central Florida Metro

https://www.zuora.com/our-customers/

Best, Swift…
Long ZUO; ZUO Ticker Guide

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Forgot to link the press release, here it is:

https://www.apnews.com/d07c2e6a6c0840e594bae54967177ded

Dear Swift,

Thanks for the great explanation. I remember reading “One up on Wall Street” by Peter Lynch, which overly influenced me into restaurant chain stocks even after the paradigm shifted. I wonder what the next generation will think when they look back at us and our attention to SAAS stocks. I can’t even imagine what will replace SAAS stocks!

Best,
Tom

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