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MGI 360 Ratings: Zuora in Billing Management MAY 2 2017

MGI 360 LogoRATING UPDATE: We maintain MGI 360 rating of Zuora at 61 and re-iterate a POSITIVE outlook.
OPINION: Zuora remains the most recognizable brand in the cloud billing space. Over the last 24 months company has gone through a transition as it dealt with sales and marketing focus, customer retention, product and implementation issues. This translated into a rotation into a more sustainable customer base, re-staffing of the sales force with senior resources, focus on sales and implementation discipline and a more manageable topline growth rate of 30%. There is more maturity in Zuora core business processes and a reduced burn rate. Customer count is around 750 (MGI est) and the company crossed an important threshold of $100Mil in revenues (MGI est). Although challenges remain in retention, product and other areas, Zuora is now on a much more solid business footing. 
USE CASE: Monetization projects that need subscription management with medium transaction volumes and complexity across a spectrum of company sizes.
COMPANY DESCRIPTIONZuora was founded in 2007 by former Webex and execs K.V. Rao, Cheng Zou and Tien Tzuo and has raised over $250Million in VC and institutional funding. Zuora sells its solutions directly via a direct sales force and leveraging partnerships with companies such as, Accenture, Deloitte and PwC. Zuora has expanded its geographic presence in Europe and began to build a presence in Asia. Zuora brand visibility, funding, pure-cloud architecture, deployment methodology and size of channel separate Zuora from the rest of the next-generation, SaaS-only vendors.
COMPETITORS: SAP Hybris Billing, Oracle BRM, Aria Systems, goTransverse, BillingPlatform, Netsuite (Oracle), Ericsson
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 149 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 system 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.
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