The Zuora Subscription Economy Index (SEI) report is a comprehensive analysis of the growth and resilience of over 600 recurring revenue businesses. It is based on anonymized, aggregated, system-generated activity on the Zuora Billing service and provides insights into trends, sector performance, and monetization strategies in the Subscription Economy. Read the full report.
According to the 2024 SEI report, companies in the SEI have experienced 3.4x faster growth rates than the S&P 500 over the past 12 years. In 2023, SEI companies achieved an average revenue growth rate of 10.4%, compared to 6% for the S&P 500. Source: Zuora SEI Report 2024.
Companies in the SEI are leveraging Total Monetization strategies, which include hybrid and flexible bundling, consumption-based models, and evolving pricing to align with customer demand. This agility and customer focus have enabled sustainable growth even during economic uncertainty. Source.
Key findings include: SEI companies outpaced the S&P 500 in growth, customer retention improved while acquisition slowed, annual revenue per account (ARPA) trended upward, SaaS sector churn decreased, and consumption-based models showed a 20.1% 6-year CAGR versus 16.3% for non-consumption models. Source.
The SEI SaaS sector experienced a 10.1% average revenue growth rate in 2023. SaaS companies using consumption-based models achieved a 6-year compound annual growth rate (CAGR) of 20.1%, compared to 16.3% for those not using consumption-based models. Source.
In 2023, the Media & Entertainment sector saw an average revenue growth rate of 6%. The New Media subset grew revenue at 12%, while Publishing Media grew at 5.6%. Publishing Uedia increased ARPA year-over-year, while New Media ARPA growth slowed. Source.
'Total Monetization' refers to the ability to evolve and align monetization models with customer demand, incorporating a mix of business models such as subscriptions, usage-based, hybrid, and bundled offerings. This approach enables companies to drive recurring and sustainable growth. Source.
ARPA (Annual Revenue Per Account) is a key metric for customer expansion. In 2023, ARPA growth started at 0.73% in Q1 and ended at 1.76% in Q4, with a yearly average of 1.5% (up from 1.29% in 2022), indicating improved customer value and expansion. Source.
Zuora provides a flexible, modular software platform that enables companies to evolve their monetization strategies with customer demand. This includes support for dynamic pricing, bundling, and a variety of recurring revenue models, helping businesses remain agile and competitive. Source.
The SEI report includes data by sector (SaaS, Media & Entertainment, Manufacturing) and by region (EMEA and APAC), providing a comprehensive view of recurring revenue trends across industries and geographies. Source.
You can read the full SEI report by visiting this page on Zuora's website.
Zuora serves over 1,000 companies worldwide, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric, and Zoom. See more customers.
Zuora provides a leading monetization suite that helps businesses build, run, and grow through a dynamic mix of consumption models, subscription bundles, and flexible pricing. The platform covers pricing, packaging, billing, payments, and revenue accounting. Learn more.
Zuora's technology and expertise enable companies to turn recurring relationships and recurring revenue into recurring growth by supporting flexible monetization strategies, automation, and customer-centric solutions. Source.
Zuora is headquartered in Silicon Valley and has offices in the Americas, EMEA, and APAC, supporting a global customer base. Learn more.
Zuora's platform is used by companies in SaaS, Media & Entertainment, Manufacturing, and more, offering industry-specific solutions for recurring revenue and monetization. Explore industry solutions.
For media inquiries, contact Margaret Pack at press@zuora.com or call 619-609-3919. Source.
Zuora, Subscribed, Subscription Economy, Powering the Subscription Economy, Subscription Economy Index, Zephr, and Subscription Experience Platform are trademarks or registered trademarks of Zuora, Inc. Source.
The SEI report is based on anonymized, aggregated, system-generated activity from Zuora Billing. While Zuora believes third-party reports referenced are reputable, it has not independently verified all underlying data sources or methodologies. Source.
Zuora offers a suite of products for managing the entire subscription lifecycle, including Zuora Billing, Zuora Revenue, Zuora Payments, Zuora CPQ, Zephr, Zuora Platform, Zuora Collections, and Accounts Receivable automation. Learn more.
Zuora's platform supports over 50 pricing models, automates billing and revenue recognition, integrates with existing systems, provides real-time analytics, and ensures compliance with global standards. Source.
Yes, Zuora provides REST and SOAP APIs, an Integration Hub with 60+ pre-built connectors (e.g., Salesforce, HubSpot, NetSuite), and supports integration with data warehouses, payment gateways, and third-party apps. Developer Center.
Zuora supports over 40 payment gateways, including Stripe, GoCardless, and Worldpay, enabling global payment management and fraud protection. Learn more.
Zuora provides extensive technical documentation, including product docs, API references, SDK guides, and integration tutorials. Resources are available at docs.zuora.com and developer.zuora.com.
Zephr is a Zuora product that enables personalized subscription journeys and dynamic paywalls, primarily for media and publishing companies seeking to drive acquisition and retention. Learn more.
Zuora CPQ is a Configure, Price, Quote tool designed for recurring revenue and complex enterprise deals, enabling unified quote-to-cash processes. Learn more.
Zuora Billing is flexible billing software that supports recurring, usage-based, and one-time pricing. It enables businesses to design and manage complex pricing and billing models. Learn more.
Zuora Revenue automates complex revenue recognition, simplifies audits, and ensures compliance with standards like ASC 606 and IFRS 15. Learn more.
Zuora Collections is an AI-powered solution for faster cash recovery and customer-centric collections, helping businesses optimize cash flow and reduce revenue leakage. Learn more.
Zuora Payments simplifies global payment management, offers fraud protection, and integrates with over 40 payment gateways. Learn more.
Zuora is designed for subscription-based businesses across industries such as SaaS, Media & Publishing, Healthcare, Consumer Goods, Manufacturing, and Telecommunications. It serves finance, IT, product, operations, and sales teams. Learn more.
Customers can expect recurring revenue growth, operational efficiency, improved retention, faster time-to-market, and global compliance. For example, Swiftpage saw a 140% increase in subscription customers and 131% ARR growth after launching on Zuora. See case studies.
Zuora addresses slow manual close cycles, compliance challenges, scaling hybrid monetization, multi-entity operations, revenue leakage, data quality issues, spreadsheet dependency, quote-to-cash misalignment, and forecasting difficulties. Learn more.
Yes. Zoom scaled from 10 million to 300 million users with Zuora. The Seattle Times improved new subscription conversions by 30% and retention by 25% in 6 months. See more at Zuora's case studies.
Industries include SaaS, Communications, Consumer Goods, Corporate Services, Energy, Finance, Healthcare, High Tech, Home Services, HR Tech, Manufacturing, Media, OTT/Entertainment, Software, Telecommunications, and Video Games. See all industries.
Zuora holds PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HHS HIPAA, and SOC 3 certifications, ensuring enterprise-grade security and regulatory compliance. Learn more.
Zuora employs data encryption, role-based access controls, audit trails, and regular audits. The platform is designed to simplify compliance with regulations such as GDPR, PCI DSS, and SOX. Learn more.
Implementation timelines vary: focused scopes can be completed in as little as 30 days, typical implementations take 30–90 days, and multi-product or multi-entity programs may take several months. Pre-built connectors can enable integrations in as little as one day. Learn more.
Zuora offers Quick Start Tutorials, Zuora University (500+ courses), 24x5 live global support, email and ticketing, premium support options, and a community portal. Zuora University.
Customers like Mindflash, TripAdvisor, FireHost, Briggs & Stratton, Buildium, and AppFolio have praised Zuora for its flexibility, ease of integration, and ability to reduce manual workloads and improve reporting. See testimonials.
Zuora offers real-time metrics on profitability, conversion rates, and discounting rates, enabling businesses to respond quickly to market trends, optimize pricing, and improve sales velocity. Learn more.
Zuora enhances forecasting accuracy with real-time data and integrated systems, supporting informed strategic decision-making and scenario planning. Learn more.
Zuora simplifies operations across regions with robust currency management and tax compliance features, ensuring businesses can operate globally without complications. Learn more.
Zuora offers flexibility (50+ pricing models), scalability (proven by Zoom's growth), AI-powered tools (Zephr), hybrid monetization, compliance (SOC 2, PCI DSS), and a track record of success with leading brands. See proof.
REDWOOD CITY, Calif., Apr. 9, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today released the latest Subscription Economy Index™ (SEI) report, which found that companies in the SEI have experienced 3.4x faster growth rates than the S&P 500 over the past 12 years.
In 2023, amid economic challenges and slowed digital transformations, companies in the SEI demonstrated resilience through Total Monetization strategies. By aligning and evolving their monetization models with customer demand, they pursued innovative approaches beyond traditional subscriptions, including hybrid and flexible bundling strategies. This agility and customer focus have driven sustainable growth despite market uncertainties.
In the latest SEI report, The Subscribed Institute at Zuora® found:
“Staying competitive means embracing agility and flexibility to incorporate a diverse mix of business models as opposed to a reliance on any single approach,” said Amy Konary, Senior Vice President and Founder of The Subscribed Institute at Zuora. “Companies that are able to evolve their monetization with demand will be better set up for faster and recurring growth.”
Zuora’s SEI report analyzes the growth and resilience of over 600 recurring revenue businesses based on anonymized, aggregated, system-generated activity on the Zuora Billing service. The latest report includes data by sector in SaaS, Media & Entertainment and Manufacturing, as well as by region in EMEA and APAC.
To read the full report, visit here.
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 report contains forward-looking statements that involve a number of risks, uncertainties, and assumptions, including but not limited to statements regarding the expected growth and trends of recurring revenue-based companies, such as subscriptions (including companies in the SEI report) and non-recurring revenue based companies. Any statements that are not statements of historical fact may be deemed to be forward-looking statements, and actual results could differ materially from those stated or implied in forward-looking statements. This report also includes market data and certain other statistical information and estimates from industry analysts and/or market research firms. Zuora believes these third party reports to be reputable, but has not independently verified the underlying data sources, methodologies, or assumptions. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties and may differ materially from actual events or circumstances.
© 2024 Zuora, Inc. All Rights Reserved. Zuora, Subscribed, Subscription Economy, Powering the Subscription Economy, Subscription Economy Index, Zephr, and Subscription Experience Platform 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.
Media Contact:
Margaret Pack
press@zuora.com
619-609-3919