MGI Research

Saturday, May 30th

Last update02:48:16 AM GMT

MGI 360 Ratings - Zuora April 9 2014 Billing Management Systems

We increase our rating of billing management provider Zuora from 59 to 60 and maintain POSITIVE Outlook. Details of the rating components are in the attachment below.

The company visibility and growth continue to outpace the market. Zuora solution is best suited for small and mid-size companies or small divisions of larger firms seeking out-of-the box subscription management functionality with modest business complexity. The company has not yet addressed complex agile billing requirements outside of subscription revenue – an area where it is facing increased competition. Large organizations looking for broad billing capability (usage-based, subscription, real-time, et al) should consider alternatives. Zuora ratings in Product, Strategy and Marketing and Management have increased modestly. The Finance rating is reduced, reflecting a high burn rate, need for additional financing prior to reaching critical mass for IPO, and a change in capital markets environment.

Background
 
Zuora provides on-demand billing solutions for small to mid-size organizations/product initiatives. The ideal use case for Zuora is a new formed entity (e.g., new company, or project offshoot of an existing business) that needs to manage subscription billing and is looking for off-the-shelf tools and processes that can be quickly implemented. Its marketing visibility, its funding and size of its channel really separate Zuora from the rest of the next-generation, SaaS-only vendors, and it has above average traction within the salesforce.com ecosystem.
About MGI 360 Ratings
MGI 360 Ratings is a comprehensive system for evaluating technology companies. IT organizations use MGI 360 to track suppliers, assess purchasing risks and identify promising new vendors. Vendors utilize MGI 360 to track their markets and evaluate partners. Institutional Investors use MGI 360 for independent assessment of tech companies. MGI 360 ratings help lower costs, save time, reduce risks, and identify new opportunities.
 
The MGI 360 ratings are on a scale from 0 to 100 and reflect company opinions of MGI analysts in five key areas on a scale of 0 to 20:
  • PRODUCT: How strong is the product competitive position
  • MANAGEMENT: How competent and experienced is the management team
  • CHANNELS: Does the company have a sales capability and channels needed to bring products to market
  • STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success
  • FINANCE: Is the company growing and profitable.
Each of these key criteria is subdivided into numerous sub-categories. In total, over 140 criteria are combined to generate an MGI 360 rating in each specific market space. Companies can have one or more MGI 360 rating - one for each market. MGI 360 ratings are revised as important developments occur. While the MGI 360 rating process is comprehensive, this scoring sytem is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud or stock performance. Access to MGI 360 Ratings is by subscription.
Attachments: (For Subscribers)
FileSubscriber InformationStore price
Download this file (MGI Research Tech Co Rating ZUOR BILL 2014-04-09.pdf)MGI 360 Rating - Zuora April 9 2014 Billing Management SystemsSubscribe & receive unlimited access to every note. Sign Up. Initial registration is free and includes one free research item. Register Now.Not Available