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Zuora Opens Office In Chennai To Expand Indian Footprint

With a 200-person capacity, the engineering talent at the new office will help drive global product innovation in Zuora's subscription economy business

Zuora Opens Office In Chennai To Expand Indian Footprint
Zuora's founder and chief executive officer, Tien Tzuo

Outlook Start-Up Desk

POSTED ON March 07, 2023 5:21 PM

Zuora, Inc, a monetization platform provider for recurring revenue businesses, has opened a new office in Chennai to support its employee population outside of the US. The office, inaugurated by Zuora's founder and chief executive officer, Tien Tzuo, is 20,115 square feet with a 200-person capacity. 

"We've intentionally designed the new Chennai office to support our vision for the future of work, empowering teams to determine how they work best in an environment that's collaborative, flexible and inclusive," said Tzuo. "India is a strategic centre for skilled talent, and we look forward to growing Zuora's team, accelerating product innovation and helping the world's best companies win in the subscription economy."

Zuora's team in India has grown 3x in the last two years to 450 employees nationwide. It plans to continue its headcount expansion over the next two years. 

The global subscription billing management market size is expected to reach $17.95 billion by 2030, registering a CAGR of 16.1 per cent between 2022 and 2030, according to Research And Markets. The growing adoption of the billing management and subscription models in utilities, media and entertainment, and the public sector is expected to create more growth opportunities for this sector over the years.

Zuora is reaping the benefits of this uptake. Its total revenue for the fourth quarter of 2023 was $103.0 million, an increase of 14 per cent year-over-year and 17 per cent on a constant currency basis. Its subscription revenue was $89.5 million, an increase of 16 per cent year-over-year and 20 per cent on a constant currency basis.

However, in Q3, Zuora turned in a net loss of $37.0 million, compared to a net loss of $22.9 million for the third quarter of fiscal 2022. Its total revenue was up 13 per cent year-on-year to $101.1 million, while subscription revenue was up 17 per cent to $86.6 million. 

Spooked by these figures, the company undertook a 11 per cent reduction of its global workforce in December 2022. While announcing this, Tzuo said, “Given the macro level of certainty, we are accelerating our focus on profitability and are committed to delivering a non-GAAP operating margin of at least 6% for fiscal year 2024. What this means is today, we announced the difficult decision to reduce our workforce by 11 per cent.”

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