Frequently Asked Questions

Subscription Economy Index & Market Trends

What is the Zuora Subscription Economy Index (SEI)?

The Zuora Subscription Economy Index (SEI) is a biannual report that analyzes the growth and resilience of businesses leveraging various monetization models, including subscriptions, usage-based, and hybrid revenue streams. It is based on anonymized, aggregated activity from over 600 companies using Zuora Billing, as well as public data from 17 subscription-based companies. The SEI measures changes in business volume and provides insights into market trends and consumer behavior. Read the full report.

How does the Subscription Economy Index compare to the S&P 500?

According to the 2025 SEI report, companies in the Subscription Economy Index experienced an 11% faster revenue growth rate over the last two years compared to the broader economy, as represented by the S&P 500. This demonstrates the resilience and growth potential of businesses using flexible, recurring revenue models. (Source: Zuora SEI 2025)

What consumer trends were identified in the latest SEI report?

The 2025 SEI report found that 68% of U.S. consumers subscribed to a new service for the first time in 2024. Additionally, 84% of consumers reported receiving the same or greater value from subscription services over the past year, and price increases were the leading cause of cancellations (47% of those who canceled cited this reason). (Source: Zuora SEI 2025, Harris Poll)

How do multiple revenue models impact company growth according to the SEI?

Companies in the SEI that employed four or more revenue models achieved 2.3% faster Average Revenue Per Account (ARPA) growth than those with 2-3 models, and 4.5% faster ARPA growth than those with only one model. This highlights the value of hybrid and diversified monetization strategies. (Source: Zuora SEI 2025)

What is the Product Portfolio Balance Score (PPBS) introduced in the SEI?

The Product Portfolio Balance Score (PPBS) is a metric introduced in the 2025 SEI report to measure the diversity of products and services offered and how frequently they are sold. A higher PPBS indicates an optimized product catalog, which correlates with increased ARPA. SEI companies improved their PPBS by 118% over the last four years. (Source: Zuora SEI 2025)

How are companies using hybrid monetization strategies to drive growth?

Businesses that adopted hybrid approaches—combining a mix of recurring, usage-based, and one-time revenue models—achieved higher ARPA growth and reduced churn. The SEI report shows that resilience and growth come from a balanced and customer-centric product portfolio. (Source: Zuora SEI 2025)

What role do finance leaders play in subscription business success?

Finance leaders are increasingly responsible for introducing new, sustainable revenue models while maintaining accurate forecasting. The SEI report emphasizes their role in driving innovation, portfolio balancing, and monetization flexibility to ensure long-term business resilience. (Source: Zuora SEI 2025)

How does consumer willingness to pay for GenAI services affect monetization strategies?

The 2025 SEI report found that while 40% of consumers used Generation AI (GenAI) services in January 2025 (up from 28% in May 2024), 64% are still not willing to pay extra for these services. This suggests companies need to rethink GenAI monetization strategies to align with consumer expectations. (Source: Zuora SEI 2025, Harris Poll)

What is the main reason consumers cancel subscriptions?

According to the 2025 SEI report, the primary reason for subscription cancellations is price increases, cited by 47% of consumers who canceled a service in 2024. (Source: Zuora SEI 2025, Harris Poll)

How does portfolio alignment impact subscriber growth?

SEI companies that improved portfolio alignment with subscriber purchasing preferences saw a 118% increase in their Product Portfolio Balance Score (PPBS) over four years, driving higher ARPA growth and subscriber retention. (Source: Zuora SEI 2025)

Zuora Platform & Product Capabilities

What products and services does Zuora offer?

Zuora provides 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. These solutions support pricing, quoting, billing, payments, revenue recognition, and analytics for subscription-based businesses. Learn more about Zuora's products.

What are the key capabilities and benefits of Zuora's platform?

Zuora's platform supports over 50 pricing models, automates billing and revenue recognition, enables hybrid monetization, provides real-time analytics, and ensures global compliance. Key benefits include monetization agility, operational efficiency, improved customer retention, and faster time to market. (Source: Zuora Product Page)

How does Zuora support hybrid and multiple revenue models?

Zuora enables businesses to implement and manage recurring, usage-based, one-time, and bundled revenue models within a single system. This flexibility allows companies to tailor their monetization strategies to changing market conditions and customer needs. (Source: Zuora Product Page)

What integrations does Zuora offer?

Zuora provides over 60 pre-built connectors (including Salesforce, HubSpot, NetSuite, and Snowflake), REST and SOAP APIs, warehouse connectors (Databricks, BigQuery, RedShift), support for 40+ payment gateways, and a marketplace with nearly 100 apps. These integrations enable seamless connection with CRM, ERP, analytics, and payment systems. Explore Integration Hub.

Does Zuora offer APIs for integration?

Yes, Zuora offers both REST and SOAP APIs for integration with external systems. The REST API is designed for modern web storefronts, while the SOAP API provides access to billing, payment, and subscription management services. Visit the Zuora Developer Center for documentation and resources.

What technical documentation is available for Zuora's platform?

Zuora provides comprehensive technical documentation, including platform guides, API references, SDK documentation, integration guides, and payment gateway integration instructions. Resources are available at the Zuora Docs Portal and Developer Center.

How does Zuora provide real-time product performance metrics?

Zuora delivers real-time product performance metrics, including profitability, conversion rates, and discounting rates. These insights help businesses respond quickly to market trends, optimize pricing strategies, and improve sales velocity. Integration between CRM and CPQ tools ensures data visibility for analysis. Learn more.

What security and compliance certifications does Zuora have?

Zuora holds several certifications, including PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HHS HIPAA, and SOC 3. These certifications demonstrate Zuora's commitment to enterprise-grade security, data protection, and regulatory compliance. Learn more about Zuora's security.

How does Zuora help businesses with global compliance?

Zuora's platform includes built-in features for multi-currency and tax compliance, data encryption, role-based access control, and audit trails. This enables businesses to operate globally while adhering to regulations such as GDPR, PCI DSS, and SOX. (Source: Zuora Security Page)

Use Cases & Customer Success

Who uses Zuora's platform?

Zuora serves over 1,000 companies worldwide, including Zoom, Box, Zendesk, Asana, The Financial Times, GoPro, Schneider Electric, and General Motors. Customers span industries such as technology, media, healthcare, manufacturing, and more. See more customer stories.

What industries are represented in Zuora's case studies?

Zuora's case studies cover industries such as SaaS, communications, consumer goods, retail, energy, finance, healthcare, high tech, manufacturing, media, entertainment, telecommunications, and video games. This demonstrates the platform's versatility across sectors. Explore case studies.

What roles and company types benefit from Zuora?

Zuora is designed for finance professionals, IT leaders, product managers, operations teams, and sales/customer success teams in subscription-based businesses. It supports industries such as technology, media, healthcare, consumer goods, manufacturing, and telecommunications. (Source: Zuora Company Context)

Can you share some customer success stories with Zuora?

Yes. For example, Zoom scaled from 10 million to 300 million users using Zuora. The Financial Times grew digital subscriptions, Asana reduced SSP analysis time by over 90%, and Hudl saved over 100 hours per month by automating processes. Read more case studies.

What business impact can customers expect from using Zuora?

Customers can expect recurring revenue growth, operational efficiency, improved customer retention, faster time-to-market, and global compliance. For example, Swiftpage saw a 140% increase in subscription customers, and Carbar reduced subscription setup time from days to minutes. (Source: Zuora Case Studies)

What feedback have customers given about Zuora's ease of use?

Customers such as Mindflash, TripAdvisor, FireHost, Briggs & Stratton, Buildium, and AppFolio have praised Zuora for its flexibility, ease of integration, and ability to simplify operations. For example, TripAdvisor reduced sync times from 5 hours to 5 minutes, and AppFolio improved team morale by reducing manual workloads. (Source: Zuora Case Studies)

How long does it take to implement Zuora?

Implementation timelines vary: focused scopes can be completed in as little as 30 days, typical implementations range from 30 to 90 days, and multi-product or multi-entity programs may take several months. Pre-built connectors can enable integrations within one day. (Source: Zuora Implementation Guide)

What support and training resources does Zuora provide?

Zuora offers Quick Start Tutorials, Zuora University (500+ courses), 24x5 live global support, email and ticketing, premium support options, developer resources, and a community portal. Explore Zuora University.

Pain Points & Problem Solving

What core problems does Zuora solve for businesses?

Zuora addresses slow, manual close cycles, ASC 606/IFRS 15 compliance, scaling hybrid monetization, multi-entity and multi-currency operations, revenue leakage, data quality, spreadsheet dependency, quote-to-cash misalignment, and forecasting challenges. (Source: Zuora Knowledge Base)

What are common pain points expressed by Zuora's customers?

Customers often face slow, manual close cycles, compliance and audit challenges, difficulties scaling usage-based models, multi-currency complexity, revenue leakage, poor data quality, spreadsheet dependency, quote-to-cash misalignment, and forecasting issues. Zuora's automation and integration features address these pain points. (Source: Zuora Knowledge Base)

How does Zuora help with compliance and audit readiness?

Zuora automates revenue recognition and reporting, ensuring compliance with ASC 606 and IFRS 15. The platform is audit-ready by default, with certifications such as SOC 2 Type II and PCI DSS Level 1. (Source: Zuora Security Page)

How does Zuora address revenue leakage and cash flow challenges?

Zuora automates collections, integrates payments, and reduces billing errors, helping businesses optimize cash flow and minimize revenue leakage. AI-powered collections and intelligent payment retries further improve financial outcomes. (Source: Zuora Product Page)

How does Zuora help reduce spreadsheet dependency and manual processes?

Zuora automates critical financial tasks such as billing, revenue recognition, and reporting, reducing reliance on spreadsheets and manual work. This improves efficiency, accuracy, and audit readiness. (Source: Zuora Knowledge Base)

How does Zuora support forecasting and scenario planning?

Zuora provides real-time data, analytics, and integrated systems to enhance forecasting accuracy and enable informed strategic decision-making. (Source: Zuora Knowledge Base)

Why should a customer choose Zuora over other solutions?

Zuora offers flexibility (50+ pricing models), scalability (proven by Zoom's growth), AI-powered tools (Zephr), hybrid monetization, compliance and security (SOC 2, PCI DSS), and a track record of customer success. These strengths make Zuora a top choice for subscription businesses. (Source: Zuora Company Context)

How does Zuora help businesses prepare for IPO or private equity investment?

Zuora provides robust systems and processes for audit readiness, compliance, and financial controls, supporting businesses in preparing for IPOs or private equity investments. (Source: Zuora Knowledge Base)

Zuora Subscription Economy Index Continues to Outperform S&P 500: Flexible Revenue Models That Evolve With Market Conditions and Consumer Expectations Thrive

New data from 600+ companies and 3,000+ consumers indicates ongoing demand amidst economic uncertainty

REDWOOD CITY, Calif., April 15, 2025 – Zuora, Inc., a leading monetization platform for modern business, today released the latest Subscription Economy Index™ (SEI) report, which found that, over the last two years, companies in the SEI have experienced an 11% faster revenue growth rate compared to the broader economy (represented by the S&P 500). In addition to data from more than 600 companies, Zuora® commissioned The Harris Poll to include new data from over 3,000 U.S. adults, which revealed 68% of consumers subscribed to a new service for the first time in 2024. 

The Subscription Economy® has fundamentally transformed how the world consumes products and services. But the report highlights that long-term success hinges on nuanced and hybrid monetization approaches that go beyond a single subscription revenue stream to flex with changing market conditions and customer expectations. Finance leaders are at the forefront of this evolution, with increasing responsibility to introduce new, sustainable revenue models without breaking the ability to forecast accurately. 

This year’s SEI report also introduces the Product Portfolio Balance Score (PPBS), which looks at the diversity of products and services available and how often those offers are sold to customers. A higher PPBS reflects an optimized product catalog that increases Average Revenue Per Account (ARPA).

In the latest SEI report, The Subscribed Institute at Zuora found: 

  • Despite ongoing economic uncertainty, subscriptions continue to attract new users and provide value: Companies in the SEI experienced a 25% increase in unique subscribers over the past two years, and 84% of consumers say they’ve continued to receive the same (50%) or even greater (34%) value from subscription services over the past year.
  • Subscription cancellations are primarily driven by price increases: Among consumers who canceled a subscription in 2024, the most common reason was price increases, which nearly half (47%) of those who canceled cited. 
  • There is an opportunity to rethink Generation AI (GenAI) monetization, as consumers are still resistant to pay extra for these services: Although consumers are increasingly using GenAI services (40% said they used these services in January 2025 compared to in 28% in May 2024), 64% of consumers said they are still not willing to pay extra for these services.
  • Resilience and growth come from a mix of revenue models: Companies in the SEI that employed multiple revenue models grew faster than their peers, with higher ARPA growth and reduced churn. Companies with 4+ revenue models achieved 2.3% faster ARPA growth than those with 2-3 models and 4.5% faster ARPA growth than those with only 1.
  • Increasing growth requires tailoring and balancing the product portfolio: As SEI companies focus on more customer-centric strategies, they’ve improved portfolio alignment with subscriber purchasing preferences, driving a 118% increase in PPBS over the last four years. Moreover, businesses that adopted hybrid approaches, combining a dynamic mix of revenue models, achieved higher ARPA growth.

“This year’s SEI report highlights just how far the Subscription Economy has evolved—and how much opportunity still lies ahead,” said Amy Konary, Senior Vice President and Founder of The Subscribed Institute at Zuora. “Companies that blend recurring revenue models with smart monetization strategies consistently outperform the market. But the playbook is changing. Success today requires more than just launching new revenue streams—it’s about thoughtfully packaging value in ways that resonate with your customers. Finance leaders are positioned to lead this shift, driving innovation and resilience through smarter portfolio balancing and greater monetization flexibility.”

Zuora’s SEI report analyzes the growth and resilience of businesses leveraging various monetization models designed to provide recurring growth. Comprised of anonymized, aggregated, system-generated activity on the Zuora Billing service along with publicly available data from 17 selected subscription-based companies, the SEI measures the change in the volume of business for more than 600 companies. This year’s report also includes consumer data, which is a result of a Zuora-commissioned survey conducted by The Harris Poll of 3,087 adults in the United States.

To read the full report, visit here. 

About Zuora, Inc.

Zuora provides a leading monetization platform 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 recognition, Zuora’s flexible, modular software solutions are designed to help companies evolve and scale monetization with 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 unique combination of technology and expertise to transform their financial operations and how they go to market. 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.

© 2025 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.

 

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

 

April 15, 2025