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Zuora Enters into Definitive Agreement to be Acquired by Silver Lake and GIC For $1.7 Billion

Zuora Stockholders to Receive $10.00 Per Share in Cash

REDWOOD CITY, Calif., October 17, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced that it has entered into a definitive agreement to be acquired by Silver Lake, the global leader in technology investing, in partnership with an affiliate of GIC Pte. Ltd. (“GIC”), in a transaction valued at $1.7 billion. Upon completion of the transaction, Zuora will become a privately held company.

Under the terms of the agreement, Silver Lake and GIC will acquire all outstanding shares of Zuora common stock for $10.00 per share in cash. The purchase price represents an 18% premium to the Company’s unaffected closing stock price[1] and a 20% enterprise value premium[2]. The agreement was unanimously approved and recommended to the Zuora Board of Directors by a Special Committee consisting of independent directors of the Board, Jason Pressman, John D. Harkey, Jr., Laura Clayton McDonnell and Tim Haley. Following the Special Committee’s recommendation, the agreement has been unanimously approved and recommended for approval by stockholders by the Zuora Board.

“Since our founding, Zuora has evangelized the shift to the Subscription Economy and evolution to complex revenue models, providing technology necessary to monetize products and services,” said Tien Tzuo, Zuora’s Founder, CEO and Chairman of the Board. “As a private company, with the support and expertise of Silver Lake and GIC, our monetization suite will continue to lead in the marketplace. We look forward to entering this next phase of growth alongside Silver Lake, GIC and our team of ZEOs.”

“Our agreement with Silver Lake and GIC represents the culmination of a comprehensive process to determine the best path to maximizing value for Zuora stockholders,” said Jason Pressman, Chair of the Special Committee and Lead Independent Director of Zuora’s Board of Directors. “Our review of potential strategic alternatives for the Company was led by a Special Committee composed of independent directors and advised by independent legal and financial advisors. We are pleased to have reached an agreement that will deliver significant, immediate and certain value to Zuora’s stockholders.”

“After recently joining the Zuora Board of Directors, I was pleased to have the opportunity to serve on the Special Committee,” said Mr. Harkey, an independent director of Zuora’s Board of Directors and member of the Special Committee. “The Special Committee and its advisors contacted over 30 parties including both financial sponsors and strategic buyers and conducted detailed due diligence with more than 10 parties. The Silver Lake and GIC proposal represents the only, final, fully-financed proposal received by Zuora, which was reviewed by the Special Committee, evaluated against Zuora’s standalone prospects, future outlook and growth plans, and other strategic and financial alternatives. We recommended this proposal because we believe it offers the best, risk-adjusted value for Zuora’s stockholders.”

“This investment underscores our confidence in Zuora as the clear leader of monetization solutions for modern recurring revenue businesses,” said Joe Osnoss, Managing Partner at Silver Lake and Mike Widmann, Managing Director at Silver Lake. “Building upon our long-term partnership with GIC, we look forward to collectively supporting management as they continue to deliver solutions that enable their more than 1,000 customers to unlock and grow customer-centric business models.”

“Zuora’s best-in-class software powers the revenue engines for many of the largest and most exciting companies today,” said Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC and Eric Wilmes, Head of Private Equity, Americas at GIC. “With rapid growth in the Subscription Economy, company requirements are becoming increasingly complex. Having established the category, Zuora’s products and experience position it for continued market leadership. We are thrilled to work alongside Zuora’s impressive management team and our partner, Silver Lake, to support the business in its next phase of growth.”

Transaction Details

The transaction is expected to close in the first calendar quarter of 2025, subject to customary closing conditions and approvals, including the receipt of required regulatory approvals; approval by a majority of the voting power of the outstanding capital of Zuora held by unaffiliated holders; and approval of a majority of the Company’s Class A common stock and a majority of the Company’s Class B common stock, each voting as separate classes. The transaction is not subject to a financing condition.

Tien Tzuo, Zuora’s Founder, CEO and Chairman of the Board, will roll over a majority of his existing ownership. As a continuing investor in Zuora, Mr. Tzuo will remain focused on ensuring that Zuora is best positioned for long-term success.

Upon completion of the transaction, Zuora’s common stock will no longer be listed on any public stock exchange. Mr. Tzuo will continue to lead the Company, which will maintain its headquarters in Redwood City.

Further information regarding terms and conditions contained in the definitive transaction agreements will be made available in Zuora’s Current Report on Form 8-K, which will be filed in connection with this transaction.

Advisors

Qatalyst Partners is serving as exclusive financial advisor to the Special Committee and provided a fairness opinion. Foros is serving as financial advisor to the Company. Goodwin Procter LLP is serving as legal counsel to the Special Committee and Freshfields US LLP is serving as legal counsel to the Company. Simpson Thacher & Bartlett LLP is serving as legal counsel to Silver Lake. Dechert LLP is serving as legal counsel to GIC. Sullivan & Cromwell LLP is serving as legal counsel to Mr. Tzuo.

[1] of $8.47 per share as of the close on April 16, 2024, the last full trading day prior to media reports regarding a possible sale transaction

[2] of $1.3 billion based on the unaffected stock price of $8.47 per share as of April 16, 2024

About Zuora, Inc.

Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

© 2024 Zuora, Inc. All Rights Reserved. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.

About Silver Lake

Silver Lake is a global technology investment firm, with more than $104 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio companies collectively generate nearly $243 billion of revenue annually and employ approximately 453,000 people globally.

About GIC

GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, GIC takes a long-term, disciplined approach to investing and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. Its long-term approach, multi-asset capabilities, and global connectivity enable it to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 2,300 people in 11 key financial cities and has investments in over 40 countries. For more information, please visit www.gic.com.sg.

Additional Information about the Transaction and Where to Find It

In connection with the proposed transaction, Zuora will file with the SEC a proxy statement, a definitive version of which will be mailed or otherwise provided to its stockholders. The Company and affiliates of the Company intend to jointly file a transaction statement on Schedule 13E-3 (the “Schedule 13E-3”). Zuora may also file other documents with the SEC regarding the potential transaction. BEFORE MAKING ANY VOTING DECISION, ZUORA’S STOCKHOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT AND THE SCHEDULE 13E-3 IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS THERETO IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the proxy statement, the Schedule 13E-3 and other documents that Zuora files with the SEC (when available) from the SEC’s website at www.sec.gov and Zuora’s website at investor.zuora.com. In addition, the proxy statement, the Schedule 13E-3 and other documents filed by Zuora with the SEC (when available) may be obtained from Zuora free of charge by directing a request to Zuora’s Investor Relations at investorrelations@zuora.com.

Participants in the Solicitation

Zuora and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from Zuora’s stockholders in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed to be participants in the solicitation of the stockholders of Zuora in connection with the proposed transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise will be set forth in the proxy statement and Schedule 13E-3 and other materials to be filed with the SEC. You may also find additional information about Zuora’s directors and executive officers in Zuora’s proxy statement for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on May 16, 2024 (the “Annual Meeting Proxy Statement”). To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Annual Meeting Proxy Statement, such information has been or will be reflected in Zuora’s Statements of Change in Ownership on Forms 3 and 4 filed with the SEC. You can obtain free copies of these documents from Zuora using the contact information above.

Cautionary Note Regarding Forward-Looking Statements

This communication contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. All statements other than statements of historical facts contained in this communication, including statements regarding the proposed transaction and its expected timing, completion and effects, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipates,” “believes,” “estimates,” “expects,” “plans,” “potential,” “will,” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions.

Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors. Important factors that could cause actual outcomes or results to differ materially from the forward-looking statements include, but are not limited to, (a) the ability of the parties to consummate the proposed transaction in a timely manner or at all; (b) the satisfaction (or waiver) of closing conditions to the consummation of the proposed transaction; (c) potential delays in consummating the proposed transaction; (d) the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction that could delay the consummation of the proposed transaction or cause the parties to abandon the proposed transaction; (e) the possibility that the Company’s stockholders may not approve the proposed transaction; (f) the ability of the Company to timely and successfully achieve the anticipated benefits of the proposed transaction; (g) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement; (h) the Company’s ability to implement its business strategy; (i) significant transaction costs associated with the proposed transaction; (j) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (k) potential litigation relating to the proposed transaction; (l) the risk that disruptions from the proposed transaction will harm the Company’s business, including current plans and operations; (m) the ability of the Company to retain and hire key personnel; (n) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; (o) legislative, regulatory and economic developments affecting the Company’s business; (p) general economic and market developments and conditions; (q) the legal, regulatory and tax regimes under which the Company operates; (r) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect the Company’s financial performance; (s) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s Class A common stock; (t) restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; and (u) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, as well as the Company’s response to any of the aforementioned factors.

For information regarding other factors that could cause the Company’s results to vary from expectations, please see the “Risk Factors” section of the Company’s periodic report filings with the SEC, including but not limited to our Form 10-Q filed with the SEC on August 29, 2024, our Form 10-K filed with the SEC on March 26, 2024 as well as other documents that may be filed by us from time to time with the SEC. These filings, as well as subsequent findings, are available on the investor relations section of the Company’s website at investor.zuora.com or on the SEC’s website at www.sec.gov. The statements in this communication represent our current beliefs, estimates and assumptions as of the date of this communication. Subsequent events and developments may cause our views to change. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this communication.

SOURCE: ZUORA, INC.

Zuora Contacts

Investor Relations Contact:
Luana Wolk
investorrelations@zuora.com
650-419-1377

Media Relations Contact:
Margaret Juhnke
press@zuora.com
619-609-3919

Eric Brielmann / Sharon Stern
Zuora-JF@joelefrank.com
212-355-4449

Silver Lake Contacts

Media Relations Contact:
Matt Benson / Ginger Li
mediainquiries@silverlake.com

GIC Contact

Media Relations Contact:
Katy Conrad
katyconrad@gic.com.sg

October 17, 2024

Zuora Accelerates Usage Monetization with New Capabilities to Rapidly Transform Raw Usage Data Into Innovative Pricing Models

Solutions help effectively monetize new offerings amid proliferation of GenAI services

REDWOOD CITY, CALIF. and LONDON, September 24, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today at Subscribed Live London announced new capabilities to ease and expedite usage-based pricing adoption, helping Software as a Service (SaaS) companies transform raw usage data into innovative pricing and provide customers with additional visibility.

SaaS is increasingly turning to usage-based models: Research from Zuora’s Subscribed Institute and Boston Consulting Group (BCG) concluded that nearly half of all companies studied implemented some form of usage-based pricing in the last three years, with many seeing higher growth and retention. The proliferation of GenAI is also leading more companies to explore usage and better correlate pricing with value. For AI and GenAI services, a Subscribed Institute study found that more than half (53%) of all consumers surveyed say it is important to have a usage-based pricing model available.

Effective usage monetization requires rapid experimentation to evolve pricing, which relies on critical usage data to understand how customers consume and engage with products. But without the right technology, translating usage into new pricing can be challenging, complex and time intensive for engineering teams. Additionally, customers expect full visibility into their usage to comprehend future charges and invoices. Without this transparency, poor customer experiences can lead to billing disputes and even churn.

Zuora’s Metering and Rating solution enables companies to immediately convert raw usage events across services and devices into usage meters, then apply them to pricing experimentation and accurate billing. A homegrown usage metering and rating tool can take multiple engineers to deploy and maintain. Now, engineers can focus on product innovation while leveraging Zuora to solve for usage pricing. Companies like Digibee and Yellow.ai use Zuora to quickly adapt usage-based pricing models based on changing market demands.

“When you look at the market demand for personalized pricing tied to value or usage, such as GenAI offerings, it’s no surprise that usage-based pricing is one of our fastest-growing solutions at Zuora,” said Shakir Karim, Senior Vice President, Product Management at Zuora. “Rolling out a new product used to start with a grand plan and a lot of guesswork that you perfected over long periods of time. “With Zuora, companies can quickly bring in usage data to experiment and ideate on new pricing models. This data-driven approach helps ensure you are pricing products based on what end customers actually use and value.”

With the recent acquisition of Togai, Zuora’s enhanced solution for usage-based pricing now includes:

Advanced usage metering and rating capabilities that allow companies to quickly experiment with different usage-based pricing models through a configurable user interface
An out-of-the-box customer portal to provide customers near real-time visibility into their usage
Drag-and-drop widgets to monitor usage trends on customer-facing dashboards
APIs to embed and showcase usage visibility in existing applications.

Zuora’s solution allows companies to rapidly add usage-pricing into their monetization mix without the need to replace their billing system. This approach helps greatly accelerate the speed to adopt usage-based pricing.

“Giving our customers immediate and accurate visibility into usage-based pricing is absolutely critical for an AI-powered integration platform like ours,” said Rafael Nobrega, Product Manager at Digibee. “With Zuora, we were live with usage metering in less than a month and able to provide instant visibility to usage data for our end customers. That’s allowed us to take new pricing from ideation to reality much faster than if our engineering team built a homegrown solution.”

To learn more about Zuora’s usage-based solutions, please visit here.

About Zuora, Inc.

Forward-Looking Statements

This press release may be deemed to contain forward-looking statements. Words such as “plan,” “expect” and “will” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release.

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the most recent fiscal quarter, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

September 24, 2024

Zuora Advances Media Solution with New AI Paywall

Media and publishing companies can get started with Zuora’s AI paywall in minutes

REDWOOD CITY, CALIF. & LONDON, September 24, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced new AI enhancements at Subscribed Live London that are now available for the world’s leading media companies. Zuora customers can instantly activate its AI paywall in minutes for a deeper understanding of subscriber behavior to drive conversion and revenue growth.

With more pressure than ever in today’s competitive media environment, success in the Paywall 3.0 era hinges on tailored offers that resonate with each user, delivered at the most appropriate time for every individual. Agile systems and technologies are required to continuously adjust pricing and packaging strategies at scale, and have become an increasingly important competitive advantage for media companies. But rolling out new offers, adjusting pricing, integrating new payment methods and designing new bundles require quality data, and manual processes that are often time intensive, which can hinder revenue growth.

Over 100 of the world’s leading media and publishing brands, including many of the global top 10 revenue generators, use Zuora to better understand individual subscriber preferences and create tailored offers. Now with its AI paywall, Zuora leverages reinforcement learning to continuously adapt subscriber acquisition strategies, dynamically adjusting access and offers based on specific interactions. Customers can easily drag-and-drop to activate these new AI capabilities, instantly learning from the numerous data sources already integrated into Zuora. Designed to fit into an existing tech stack, Zuora’s solution for media companies can be added without displacing a single system, connecting with over 30 extensions for the media industry, including CRM, data and analytics tools.

Customers have seen:

Up to a 54% increase in conversion
Up to a 61% increase in revenue

“Media companies need to be able to move rapidly to keep subscribers engaged as new competitive options launch every day,” said Chris Scott, Chief Design Officer at Zuora. “Outdated methods like propensity scoring can’t learn fast enough to respond in an ever changing market, and can hold companies back by modeling based on historical data. Zuora leverages AI that can give each customer a deeply personalized experience with the right offer at the right time, while eliminating time and investment spent on manual testing.”

To learn more about creating, testing and iterating paywall strategies with AI-powered decision making on Zuora, visit here.

About Zuora, Inc.

Forward-Looking Statements

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

September 24, 2024

MGI Research Ranks Zuora Revenue No. 1 in Product and Strategy in 2024 Automated Revenue Management Ratings

Buyer’s Guide rates Zuora highest in solution strength

REDWOOD CITY, CALIF., August 29, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced MGI Research (MGI) has ranked Zuora Revenue in first place across Product and Strategy in its Automated Revenue Management (ARM) Buyer’s Guide and the latest MGI 360™ Ratings – Market Ratings Report (MRR).

Zuora Revenue maintained a Positive Analyst Outlook from MGI, with the highest rating in solution strength and an overall score eleven points higher than the peer average.

MGI gave Zuora Revenue the top rankings across:

Product: MGI recognized Zuora Revenue as a leading, feature-rich solution with a demonstrated ability to meet the automation needs of complex and public enterprise companies.
Strategy: Zuora Revenue was highlighted for expanding its vision of revenue automation to handle a broader range of customer sizes and use cases, while continuing to invest in product reliability, scalability and security.

Zuora powers revenue recognition for any business model, including usage-based models, subscriptions, one-time transactions, hybrid offerings and more. Through a dynamic and diverse mix of revenue models, Zuora helps companies monetize across their business, from pricing and packaging, to billing, payments and revenue accounting.

“With powerful automation and flexibility, Zuora Revenue helps businesses navigate the complexities of modern revenue models,” said Karthik Ramamoorthy, GM and SVP of Product at Zuora. “This recognition from MGI Research underscores our commitment to helping enterprise organizations across industries achieve reliable, scalable and secure revenue management.”

In addition to the ARM Buyer’s Guide, Zuora was recognized as a top-ranked billing solution in MGI Research’s Agile Billing Top 50 Buyer’s Guide. Zuora was also recently named a Leader in the 2024 Gartner® Magic Quadrant™ for Recurring Billing Applications and a Leader with the highest rating in the ISG Software Research Subscription Management Buyers Guides.

To learn more about Zuora Revenue and the ratings, visit here.

About Zuora, Inc.

Forward-Looking Statements

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

August 29, 2024

Zuora Recognized as a Leader in 2024 Gartner® Magic Quadrant™ for Recurring Billing Applications

Zuora placed furthest in Completeness of Vision

REDWOOD CITY, CALIF., August 12, 2024 – Zuora Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced that Zuora has been positioned by Gartner as a Leader in the Magic Quadrant for Recurring Billing Applications for the Zuora Monetization Suite^[1]. The evaluation was based on specific criteria that analyzed the company’s overall Completeness of Vision and Ability to Execute. Within the quadrant, Zuora was placed furthest in Completeness of Vision.

“It is an honor to be recognized as a Leader in the Recurring Billing Applications Magic Quadrant, which we believe reaffirms Zuora’s ability to enable flexible monetization at scale for any business model,” said Pete Hirsch, Chief Product and Technology Officer at Zuora. “Zuora predicted and led the shift from one-time transactions to the proliferation of recurring revenue businesses, and as momentum increases for usage-based and hybrid models, we now offer the most complete monetization suite to help companies evolve how they monetize with customer demand.”

The Zuora Monetization Suite enables companies to power a dynamic mix of revenue models, pricing and packaging, including usage-based models, subscriptions and hybrid offerings. From billing to payments and revenue accounting, Zuora provides a flexible, modular software platform designed to help companies power any business model.

A Gartner Magic Quadrant is a culmination of research in a specific market, giving you a wide-angle view of the relative positions of the market’s competitors. A Magic Quadrant provides a graphical competitive positioning of four types of technology providers, in markets where growth is high and provider differentiation is distinct: Leaders, Challengers, Visionaries and Niche Players. The research enables you to compare a technology provider’s strengths and challenges with your specific needs.

View a complimentary copy of the Magic Quadrant report here.

Gartner Disclaimer

Gartner, Magic Quadrant for Recurring Billing Applications, Mark Lewis, Robert Anderson, 6 August 2024.

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.

About Zuora, Inc.

Forward-Looking Statements

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

[1] Source: Gartner, “Magic Quadrant for Recurring Billing Applications,” August 2024.

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

August 12, 2024

Zuora Study Highlights Consumer Adoption Trends and Preferences for AI and GenAI Services

Early adoption rates for GenAI services point to clear opportunities and monetization strategies

REDWOOD CITY, Calif., August 7, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today released the findings of its latest study, AI Monetization Strategies: What Consumers Want and How to Deliver, which analyzes consumer behaviors and preferences regarding AI and generative AI (GenAI) services.

As businesses navigate monetization strategies for these new technologies, The Subscribed Institute at Zuora® commissioned The Harris Poll to conduct a study in May 2024 among more than 2,000 U.S. adults to better understand current adoption and sentiment regarding AI and GenAI services. While the pace of innovation is not slowing down, the data shows that we are still in the early stages of consumer adoption, particularly for older generations.

Key findings from the study include:

While we are at the beginning of the consumer adoption curve for AI services and technologies, there are clear opportunities to drive future adoption across age groups: 50% of Gen Z respondents are currently using the technology, compared to 43% of Millennials, 20% of Gen X and only 9% of Boomers/Seniors. Overall, 28% of respondents say they are using these services. Another 27% of all respondents are not currently using GenAI services, but report an interest in trying them.

Preference for usage-based models: More than half (53%) of all respondents say it is important to have a usage-based pricing model available for AI and GenAI services, compared to much fewer who say the same for an option for an annual recurring (29%) or monthly recurring (28%) charge for AI and GenAI services.

Early adoption of AI services may be linked to a preference for outcome-based charges: Study results indicate a potential correlation between GenAI services adoption and interest in outcome-based charge models. Among those who use or are interested in using GenAI services, Gen Z reported both the highest adoption rate of GenAI services (50% of Gen Z) and the highest preference (23%) for outcome-based charges (compared to 17% of Millennials, 16% of Gen X, and only 8% of Boomers/Seniors). This type of usage-based pricing model charges customers based on the actual resolutions, or outcomes, produced by the service.

Success hinges on aligning monetization with perceived value: Most respondents (70%) said they would not currently be willing to pay extra for embedded, GenAI-enabled features, however, early adopters may be more willing. Gen Z is the only age group that is essentially split down the middle in terms of willingness to pay (54% yes; 46% no) for added GenAI capabilities within an existing subscription (compared to Millennials: 43%, Gen X: 24%, Boomers/Seniors: 11%). By tapping into the preferences of those adopting the technology at higher rates, like Gen Z, vendors may be able to expedite value realization.

“The rapid evolution of AI services presents significant monetization opportunities and challenges,” said Amy Konary, Senior Vice President and Founder of the Subscribed Institute at Zuora. “The varying interest between generations highlights the need to deliver clear value while acknowledging that value may differ for each age group. Companies that embrace usage-based pricing and outcome-oriented models can also be better positioned to maintain recurring customer relationships in the age of AI.”

To read the full study, visit here.

About Zuora, Inc.

Forward-Looking Statements

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

SOURCE: ZUORA, INC.

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

August 7, 2024

New Zuora Data Reveals Subscriber Demand for Flexibility and Value, with Pricing Models and Packages Tailored to Consumption Habits

REDWOOD CITY, Calif. – July 30, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today released the findings of its Understanding the Modern Subscriber study, which found consumers, particularly younger generations, seek flexibility to shape their payment options around their specific needs and unique consumption habits.

Today’s consumers are increasingly discerning, looking for options that align with their individual buying preferences and usage patterns. The Subscribed Institute at Zuora® commissioned The Harris Poll to conduct a study in May 2024 among more than 2,000 U.S. adults to shed light on consumer habits and preferences tied to how they’re using recurring products and services, such as subscriptions. The findings reveal that the modern consumer seeks flexibility in pricing and convenience, uncovering opportunities for businesses to embrace personalization and value to foster stronger customer relationships, and ultimately, reduce churn.

Key findings from Understanding the Modern Subscriber include:

Flexibility is paramount: 80% of respondents said that flexibility in how they buy and pay for recurring products and services was either important, very important or absolutely essential. And when asked about pricing model preferences, across generations, consumers expressed interest in a variety of options.
Usage-based pricing is an important tool, and critical for certain product categories: Preference for usage increases for certain product categories, with the highest interest in usage for travel (62%), food/restaurant delivery (60%) and retail (58%) services. For recurring products and services as a whole, 22% of all respondents said usage pricing is a preferred method, with even higher interest from Gen Z (32%).
Cost often drives interest in tailored offerings: Consumer choices are heavily influenced by cost, with 48% of respondents preferring bundles for better value and 30% choosing à la carte offerings when cheaper than a bundle. This value-driven preference for bundles is stronger in older generations (58% of Boomers/Seniors, 52% of Gen X) compared to younger ones (43% of Millennials, 35% of Gen Z). While cost is king, personalization also plays a role, with 23% overall (and 29% of Boomers/Seniors) favoring à la carte when they only want parts of the offering.
Subscribers like to come and go as they please: 36% of respondents have canceled and rejoined the same service within a year, while 57% of respondents said that they have subscribed to a streaming service specifically to watch a certain series or event, and then unsubscribed afterwards. Additionally, 78% of respondents said they would be interested in the option to temporarily pause a recurring service, as opposed to canceling.
Affordability and convenience matter: The top three benefits of subscription services overall are affordability (51%), value for money (37%) and convenience (32%).

“Acquiring and retaining subscribers have always been about providing ongoing value, but businesses need to diversify their offerings to meet the strong desire for flexibility in today’s landscape,” said Amy Konary, Senior Vice President and Founder of the Subscribed Institute at Zuora. “By tailoring to ever-evolving consumer preferences, recurring revenue businesses can foster stronger customer relationships to unlock new avenues for growth and long-term success.”

To read the full study, visit here.

About Zuora, Inc.

Forward-Looking Statements

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

SOURCE: ZUORA, INC.

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

July 30, 2024

Zuora Named Leader with the Highest Rating in ISG Software Research Subscription Management Buyers Guides

Out of 24 software providers, Zuora leads in Subscription Management, Subscription Management Platforms, B2B and B2C Subscription Management

REDWOOD CITY, CALIF., July 16, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced that it has been named a leader with the strongest performance by ISG Software Research (formerly Ventana Research), part of leading global technology research and advisory firm Information Services Group (ISG), in its Subscription Management Buyers Guides.

The analysis classified Zuora as Exemplary, with the highest rating in each of the four buyers guides. Additionally, the research highlighted Zuora’s success and growth over the last year as well as overall investments and improvements to its platform and products.

The 2024 ISG Subscription Management Buyers Guides evaluated 24 software providers to help best understand, assess and select software providers across the following four categories:

The Subscription Management Buyers Guide: Evaluates software providers that offer solutions addressing key elements of both B2B and B2C subscription management, focusing on comprehensive features and functionalities.
The Subscription Management Platforms Buyers Guide: Evaluates software providers that support the underlying technology and infrastructure supporting various subscription models.
The B2B Subscription Management Buyers Guide: Evaluates software providers that serve business-to-business enterprises, handling more complex customers with multiple product and service orders or individually negotiated prices.
The B2C Subscription Management Buyers Guide: Evaluates software providers that enable direct methods for customers to initiate and modify service plans and orders. It addresses the complexity of scaling a large number of subscribers while ensuring seamless customer engagement.

While companies continue to implement recurring revenue business models at growing rates, the reports also highlight increased adoption of additional pricing and monetization methods, particularly usage-based models.

“We’ve projected that by 2027, over one-half of all enterprises will deploy a mixed revenue model that includes subscriptions and usage pricing in addition to one-time sales as enterprises make adjustments to remain competitive,” said Stephen Hurrell, Director of Research, Office of Revenue at ISG. “Zuora provides comprehensive support for numerous pricing models with flexibility and scalability to help both B2B and B2C enterprises evolve with customer demand.”

“The ISG Subscription Management Buyers Guides confirm that leading enterprises need technology that enables them to flexibly monetize across their business,” said Pete Hirsch, Chief Product and Technology Officer at Zuora. “This recognition is a testament to our product innovation and ability to power Total Monetization through a diverse mix of revenue models, pricing and packaging.”

Visit here to view the ISG Subscription Management Buyers Guides, including provider rankings across seven product and customer experience dimensions as well as detailed research findings.

About Zuora, Inc.
Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

Forward-Looking Statements
This press release may be deemed to contain forward-looking statements. Words such as “plan,” “expect” and “will” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release.

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

SOURCE: ZUORA, INC.

Media Contact:
Margaret Juhnke
press@zuora.com
619-609-3919

Investor Relations Contact:
Luana Wolk
investorrelations@zuora.com
650-419-1377

July 16, 2024

Zuora to Acquire Sub(x), Accelerating Subscriber Acquisition and Retention with New AI Capabilities for the Media Industry

REDWOOD CITY, CALIF., June 18, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced its planned acquisition of Sub(x), an AI solution for digital publishing and media companies. With this acquisition, Sub(x) will transform Zuora’s existing paywall offering into an AI-powered paywall solution to gain deeper insights into subscriber behavior, constantly optimizing how offers are presented to maximize acquisition and retention.

Today’s competitive media landscape and changing market dynamics have increased pressure to effectively monetize and accelerate revenue growth. This requires more dynamic systems and technology that can continuously adapt pricing and packaging strategies at scale. A legacy method, such as propensity scoring, is static and does not update unless rerun with new data, which can hinder agility. Launching new offers and pricing changes, introducing new payment methods or creating new bundles can take days or even weeks, which can lead to missed opportunities and lost revenue.

Sub(x)’s AI uses reinforcement learning powered by first-party data that enables companies to optimize conversion without the need for manual testing and experimentation. This can reduce the time and costs associated with this type of activity by up to 90%. By continuously learning and adapting its strategies based on specific user interactions of a company’s unique audience, Sub(x) dynamically adjusts access and recommendations based on changing subscriber actions. Sub(x) also leverages AI without losing transparency, enabling customers to discover valuable audience patterns, and better understand which offerings are driving subscription revenue and conversions by customer behavior.

“Sub(x) adds a cutting-edge AI layer to Zuora, empowering our customers to constantly learn, present the right offers and continue to engage subscribers as preferences change over time,” said Tien Tzuo, Founder and CEO at Zuora. “Welcoming Sub(x) to the Zuora team immediately expands our holistic solution for media companies, while accelerating the pace of our AI innovation across Zuora’s monetization suite.”

“Publishers need the ability to drive speed over rigid planning, power data-driven decisions at scale and achieve continuous improvement over static goals for rapidly changing audience behaviors,” said Jonathan Harris, Founder and CEO at Sub(x). “Joining Zuora will give companies new agility to harness AI and monetize across their business.”

Zuora provides a comprehensive solution for the media industry to enable Total Monetization through a dynamic mix of revenue, pricing and packaging models, informed by first-party data. Its intelligent paywall and subscriber insight dashboards help maximize revenue and retention, while a low-code rules builder and agile product catalog allows companies to quickly create and deploy subscription offers without relying on developer resources or data teams. Additionally, Zuora enhances the customer experience and helps to reduce churn through AI-driven smart payment retries, a self-service subscription portal to update personal billing details and make amendments, over 45 payment methods and robust fraud protection.

Sub(x) is an established Zuora partner with an integrated solution in use by joint customers. After closing, Sub(x) will be available as a Zephr module within the Zuora product suite.

The acquisition of Sub(x) is expected to close by Zuora’s third quarter fiscal 2025 (October 31, 2024 or sooner) subject to customary approvals and closing conditions. Foros is acting as financial advisor and Freshfields Bruckhaus Deringer LLP as legal advisor to Zuora. Gerald Edelman LLP is acting as financial advisor and Simons Muirhead Burton LLP as legal advisor to Sub(x).

To learn more about Sub(x), please visit here.

Zuora is bringing together a community of leaders and visionaries to discuss the future of modern business and monetization for media and beyond at Subscribed Live Bay Area on June 26. Register here.

Forward-Looking Statements
This press release relates to the pending acquisition of Zeddit Limited t/a Sub(x) by Zuora, Inc. (“Zuora”, “we”, “our” or “us”). This press release may be deemed to contain forward-looking statements. Words such as “plan,” “expect” and “will” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties, including statements regarding Sub(x)’s ability to transform Zuora’s existing paywall offering and help customers gain deeper insights into subscriber behavior, the ability to give companies new agility to harness AI and monetize across their business, the anticipated timing and impact of the proposed acquisition of Sub(x) on Zuora’s business, and the availability of Sub(x) in the Zuora monetization suite and product portfolio following the acquisition. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with Zuora’s strategies, priorities, or plans taking longer to execute than anticipated; the effect of the announcement on the ability of Zuora or Sub(x) to retain key personnel or maintain relationships with customers; risks that the acquisition could disrupt current plans and operations; the ability of the parties to consummate the acquisition on a timely basis; the satisfaction of customary closing approvals and conditions; and general market, business, competitive and economic conditions. Percentages used in this press release are estimates or approximations and have not been assured or verified by an independent third party unless otherwise noted.

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

© 2024 Zuora, Inc. All Rights Reserved. Zuora and Zephr are trademarks or registered trademarks of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.

SOURCE: ZUORA, INC.

Media Contact:
Margaret Juhnke
press@zuora.com
619-609-3919

Investor Relations Contact:
Luana Wolk
investorrelations@zuora.com
650-419-1377

June 18, 2024

Zuora Releases Latest Global Impact Report, Committing to GHG Reduction Targets and Increasing Leadership Diversity

REDWOOD CITY, Calif. – June 17, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today launched its fiscal year (FY) 2024 Global Impact Report.

The report emphasizes Zuora’s commitment to operating as a responsible, ethical, inclusive and sustainable company, with details on how it is progressing its global Environmental, Social and Governance (ESG) goals and programs.

Highlights from Zuora’s FY 2024 Global Impact Report include:

Committed to the Science Based Targets initiative (SBTi) with both near- and long-term greenhouse gas (GHG) reduction goals, the first step to achieving a net-zero target
Reached 100% renewable energy for Zuora’s global real estate footprint for the second consecutive year
Increased diversity of Zuora leadership year-over-year
Upheld Zuora’s pledge 1% commitment through $764,000 in corporate grants and employee donations
Continued community involvement: 88% of Zuora employees gave back to their communities through volunteering and giving programs
Established a Governance, Risk and Compliance (GRC) Committee to review progress and address potential gaps in policy

“Modern business is rooted in recurring relationships, and that means putting people first instead of products,” said Tien Tzuo, Founder and CEO at Zuora. “Subscribing to this philosophy guides the business models Zuora powers and how we approach ESG to create a more equitable, accessible and sustainable world for our customers, employees, shareholders and the community around us.”

Zuora’s FY 2024 Global Impact Report is prepared in accordance with the Sustainability Accounting Standards Board (SASB) framework and is informed by the Global Reporting Initiative Standards (GRI) and the United Nations Global Compact (UNGC).

To access the full report, visit here.

Forward-Looking Statements
The report does not cover all information about our business. References in the report to information should not be construed as a characterization regarding the materiality of such information to our financial results or for purposes of the U.S. federal securities laws or any other laws or requirements. The information covered by the report and this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our ESG goals, commitments, and strategies and related business impacts. These statements involve risks and uncertainties and assumptions based on information available to management as of the date of the report, and actual results may differ materially from any future results expressed or implied by the forward-looking statements due to a variety of factors, some which relate to matters beyond our control, including, among others, assumptions not being realized; failure to meet stated ESG goals or commitments and execute our strategies in the time frame expected or at all; socio-demographic and economic trends; evolving sustainability strategies; unexpected delays, difficulties and expenses in executing our ESG goals or commitments; the pace, cost and effectiveness of technological innovations; our ability to gather and verify data regarding impacts; the compliance of various third parties with our policies and procedures, or their commitments to us; our expansion into new products, services, technologies, and geographic regions; climate-related conditions and weather events; evolving state, federal or international legislative and regulatory changes or legal standards; and other unforeseen events or conditions.

More information on risks, uncertainties, and other potential factors that could affect our business and performance is included in our filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. We assume no obligation to update any forward-looking statements or information, which speak as of their respective dates. Numbers and percentages used in the report are estimates or approximations and have not been assured or verified by an independent third party unless otherwise noted. Moreover, many of the assumptions, standards, metrics and measurements used in preparing the report continue to evolve and are based on assumptions believed to be reasonable at the time of preparation but should not be considered guarantees. Given the inherent uncertainty of the estimates, assumptions and timelines contained in this report, we may not be able to anticipate whether or the degree to which we will be able to meet our plans, targets or goals in advance.

SOURCE: ZUORA, INC.

Media Contact:
Margaret Juhnke
press@zuora.com
619-609-3919

June 17, 2024

Zuora Appoints John D. Harkey, Jr. to Board of Directors

REDWOOD CITY, Calif. – May 1, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced the appointment of John D. Harkey, Jr. to the Zuora Board of Directors, effective April 30, 2024. With the addition of Mr. Harkey, the Zuora Board of Directors will consist of ten Board members, nine of whom are independent. The appointment is in connection with a cooperation agreement (the “Agreement”) Zuora has entered into with Scalar Gauge Fund, LP and certain of its affiliates (collectively, “Scalar Gauge”). Scalar Gauge is an investment firm that owns approximately 3.7% of Zuora’s outstanding class A common shares.

Jason Pressman, Lead Independent Director at Zuora, said, “John brings over 25 years of experience as a chief executive, director and private investor in companies across a wide range of industries, and we welcome him to the Zuora Board.”

Tien Tzuo, Founder, CEO and Chairman of the Board at Zuora, added, “Zuora is executing on our enhanced go-to-market strategy, modularizing our product offerings and expanding our portfolio of product offerings, and we look forward to benefiting from John’s financial expertise, experience in customer-centric industries, and track record of helping companies execute on strategic transformations.”

Mr. Harkey added, “With one of the most powerful, flexible and customer-friendly platforms for businesses looking to monetize their offerings, Zuora is incredibly well positioned to continue building on its momentum. I look forward to working closely and collaboratively with my fellow directors and the Zuora management team to build on the company’s strong foundation and drive shareholder value.”

The Agreement contains customary standstill, voting, non-disparagement, and other provisions. A complete copy of the Agreement will be filed on a Form 8-K with the U.S. Securities and Exchange Commission.

Sumit Gautam, Founder and Portfolio Manager of Scalar Gauge, said, “We have appreciated our constructive engagement with Zuora, and believe that adding John Harkey to the Board of Directors will contribute to unlocking tremendous value at Zuora.”

Mr. Harkey will serve as a Class I Director for a one-year term that is expected to expire at the 2025 Annual Meeting.

John D. Harkey, Jr. has over 25 years of experience as a chief executive, director and private investor in companies across a wide range of industries. Mr. Harkey is currently the Founder and Principal of JDH Investment Management, LLC – which is focused on investments in leading innovative technologies and emerging company opportunities in healthcare – and Chairman and Chief Executive Officer of Consolidated Restaurant Companies, Inc. – an operating and franchising company for seven restaurant brands. Prior to his current focuses, Mr. Harkey was the Co-Founder of AveXis, Inc., a biotechnology company, and Executive Chairman from 2010 to 2015. AveXis was sold to Novartis AG in November 2018.

Over the course of his career, Mr. Harkey has previously served on the board of directors of nine public companies. Mr. Harkey currently serves on the Board of Directors and Audit Committee of Lionsgate Entertainment Corp., is the Chairman of the Board of Directors of Dialectic Therapeutics, Inc., and Chairman of the Board of Veterinary Service, Inc. Mr. Harkey received his B.B.A. in Business Honors and a J.D. from the University of Texas at Austin and an M.B.A. from Stanford University School of Business.

About Scalar Gauge

Scalar Gauge is a special situations investment firm utilizing a private equity approach in public markets. The fund invests with a long-term view, and often works with management teams, boards and other strategic investors to help create shareholder value. For more information, please visit www.scalargauge.com.

About Zuora, Inc.

Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of consumption models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

Forward-Looking Statements

This press release contains express and implied forward-looking statements including but not limited to expectations regarding our strategy, product offerings and portfolio, investments and ability to achieve success. Forward-looking statements are subject to a number of risks, uncertainties and assumptions, other than statements of historical fact, that refer to future plans and expectations are forward-looking statements that involve a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to our ability to achieve, sustain and manage our growth, our ability to execute on our go-to-market strategy and our ability to compete effectively with our products, as well as other risks detailed in the “Risk Factors” section of Zuora’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 26, 2024, as well as other documents that Zuora may file from time to time with the SEC. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

© 2024 Zuora, Inc. All Rights Reserved. Zuora is a registered trademark of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.

Source: Zuora, Inc.

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

Media Relations Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

May 1, 2024

Zuora to Acquire Togai, Enhancing Usage-Based Offerings Amid the GenAI Explosion

Acquisition empowers developers and finance teams to accelerate usage-based offerings

REDWOOD CITY, CALIF., April 30, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced its planned acquisition of metering and rating solution Togai, enhancing its usage-based offerings. With Togai’s low-code builder and developer-friendly interface to quickly configure metering and rating of raw events, the acquisition will help Zuora unite developers and finance teams to launch, iterate and adapt usage-based models.

The explosion of generative AI (GenAI) technologies has companies increasingly turning to usage-based business models, but added complexity and cost still prevent many companies from effectively monetizing their offerings. Developers often have sole access to product usage data and are left to manage it with inadequate, custom-coded systems, leaving finance teams unable to access the information they need to accurately invoice and recognize revenue.

Togai enhances Zuora’s monetization suite, enabling developers to work alongside finance teams to define and operate any pricing model with a solution that can be easily plugged into their existing data stack. Its metering system facilitates event ingestion from a variety of sources, and its flexible rating engine enables unique ways to package and bundle offerings. Developers can get started with Togai’s self-service interface in minutes, which can support up to a billion events per day and reduce customer disputes with fully auditable and traceable usage data. Its Revenue Simulator and pre-built CRM connectors also alert sales teams of upcoming upsell and renewal opportunities.

“Togai’s sophisticated metering and rating extends Zuora’s market-leading monetization suite to accelerate usage-based models,” said Tien Tzuo, Founder and CEO at Zuora. “Together, we will be strategically positioned to provide the right solutions for developers and finance teams to power the next generation of monetization.”

Togai was founded in 2022 by Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan, who will join Zuora with Togai employees. After closing, Togai’s metering and rating solution will become a part of Zuora’s existing product suite alongside Zuora Billing, Zuora Revenue, Zuora Payments, Zephr and Zuora Platform. It will be available both as a new standalone usage offering and with Zuora’s existing consumption solution. The acquisition also strengthens Zuora’s ability to enable Total Monetization, helping companies evolve their offerings to align with customer demand through a mix of innovative business models.

“Developers spend months building internal metering and rating systems, which can quickly evolve into a dedicated team of engineers as companies realize that building a usage-based billing system is not a one-time effort. Togai makes it possible to go live in hours with an out-of-the-box, flexible solution to model any type of pricing and reliably scale,” said Abhishek Rajagopal, CEO and Co-founder at Togai. “Combining Zuora and Togai is the right decision to bring together deep metering and rating with the scale of Zuora’s end-to-end monetization technology.”

The acquisition of Togai is expected to close in early May 2024 and is subject to customary approvals and closing conditions. Foros is acting as financial advisor and Freshfields Bruckhaus Deringer US LLP as legal advisor to Zuora. QED Corporate Advisors is acting as financial advisor and Argus Partners as legal advisor to Togai.

To learn more about Togai, please visit here.

About Zuora, Inc.

Forward-Looking Statements

This press release relates to the pending acquisition of Togai by Zuora, Inc. (“Zuora”, “we”, “our” or “us”). This press release may be deemed to contain forward-looking statements. Words such as “plan,” “continue,” “expect” and “will” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties, including statements regarding Zuora’s ability to power innovative business models and help companies accelerate usage monetization, the anticipated timing and impact of the proposed acquisition of Togai on Zuora’s business, Zuora’s continued investment in innovation, and expected benefits of our products and the expansion of Zuora’s product suite following the acquisition. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with Zuora’s strategies, priorities, or plans taking longer to execute than anticipated; the effect of the announcement on the ability of Zuora or Togai to retain key personnel or maintain relationships with customers; risks that the acquisition could disrupt current plans and operations; the ability of the parties to consummate the acquisition on a timely basis; the satisfaction of customary closing approvals and conditions; and general market, business, competitive, economic conditions.

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2024, and other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

SOURCE: ZUORA FINANCIAL

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

April 30, 2024