Frequently Asked Questions

Zuora & Subscription Economy Index

What is the Zuora Subscription Economy Index (SEI)?

The Zuora Subscription Economy Index (SEI) is a proprietary index that analyzes the growth and resilience of recurring revenue businesses. It is comprised of anonymized, aggregated, system-generated activity on the Zuora Billing service, measuring changes in the volume of business for subscription-based products and services across more than 500 businesses. The SEI tracks trends in flexible recurring pricing models, such as consumption and time-based memberships. Learn more.

How has the Subscription Economy Index performed compared to the S&P 500?

According to the latest SEI report, subscription-based companies in the SEI have experienced 3.7x faster growth rates than the S&P 500 over the past 11 years. In 2022, the SEI saw 12% revenue growth compared to 10.6% for the S&P 500, demonstrating the resilience and growth potential of recurring revenue models even during challenging economic conditions. (Source: Zuora SEI Report, Mar. 29, 2023)

What trends did the SEI report identify for subscription businesses in 2022?

The SEI report found that, despite economic headwinds, subscription businesses continued to grow by acquiring new customers, retaining existing ones, and expanding revenue with new compartmentalized add-ons and packages. Churn rates remained relatively consistent (6.36% in 2022 vs. 6.13% in 2018), and subscriber acquisition rates increased compared to pandemic lows. Average revenue per account (ARPA) growth slowed but remained positive, and SaaS was the fastest-growing sector with 12.3% revenue growth on average. (Source: Zuora SEI Report, Mar. 29, 2023)

Which sectors are covered in the Subscription Economy Index?

The SEI covers businesses in SaaS, Media, and Manufacturing sectors, as well as regional performance in EMEA and APAC. SaaS was the fastest-growing sector in 2022, with 12.3% average revenue growth. (Source: Zuora SEI Report, Mar. 29, 2023)

How does the SEI measure subscription business performance?

The SEI measures the change in the volume of business for subscription-based products and services using anonymized, aggregated, system-generated activity from the Zuora Billing service. It tracks metrics such as revenue growth, churn rates, subscriber acquisition, and average revenue per account (ARPA) across more than 500 businesses. (Source: Zuora SEI Report, Mar. 29, 2023)

Where can I download the latest Subscription Economy Index report?

The latest SEI report is available for download on Zuora's website. Visit this page to access the report.

What is Zuora's role in the Subscription Economy?

Zuora is a leading monetization platform provider for recurring revenue businesses, enabling companies to unlock customer-centric business models. Zuora's platform orchestrates the complete quote-to-cash and revenue recognition process at scale, supporting over 1,000 companies worldwide. (Source: Zuora Press Release, Mar. 29, 2023)

How does Zuora help companies grow in uncertain economic conditions?

Zuora enables companies to acquire new customers, retain existing ones, and expand revenue with new add-ons and packages. The platform supports flexible pricing models and provides tools to manage churn, ARPA, and subscriber acquisition, helping businesses remain resilient and grow even during economic turbulence. (Source: Zuora SEI Report, Mar. 29, 2023)

What are some best practices for subscription businesses during market uncertainty?

Best practices include offering customers the flexibility to downgrade or pause subscriptions and using promotional pricing to attract new subscribers. These strategies help add and maintain subscribers, especially in uncertain markets. (Source: Zuora SEI Report, Mar. 29, 2023)

Who are some notable companies using Zuora?

Zuora supports over 1,000 companies worldwide, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric, Siemens, and Zoom. (Source: Zuora Press Release, Mar. 29, 2023)

What is Zuora's global presence?

Zuora is headquartered in Silicon Valley and operates offices around the world, including in the U.S., EMEA, and APAC regions. (Source: Zuora Press Release, Mar. 29, 2023)

What is the main value proposition of Zuora's platform?

Zuora provides a leading monetization platform for recurring revenue businesses, enabling companies to unlock customer-centric business models and orchestrate the complete quote-to-cash and revenue recognition process at scale. (Source: Zuora Press Release, Mar. 29, 2023)

What products does Zuora offer?

Zuora offers a multi-product portfolio including Zuora Billing, Zuora Revenue, Zuora Collect, and Zephr, all powered by the Zuora Platform. These products help companies manage billing, revenue recognition, collections, and subscriber experiences. (Source: Zuora Press Release, Mar. 29, 2023)

How does Zuora support different pricing models?

Zuora's platform supports a range of flexible recurring pricing range models, including consumption-based and time-based memberships, allowing businesses to tailor their offerings to customer needs. (Source: Zuora SEI Report, Mar. 29, 2023)

What is the significance of recurring revenue models in today's economy?

Recurring revenue models offer subscribers predictable spending opportunities with clear value and savings over time. They help businesses remain resilient and grow even during economic uncertainty, as shown by the SEI's outperformance of the S&P 500. (Source: Zuora SEI Report, Mar. 29, 2023)

How does Zuora help companies nurture and monetize direct customer relationships?

Zuora's platform enables companies to manage the entire subscriber lifecycle, from acquisition to retention and expansion, using tools for billing, revenue recognition, collections, and personalized subscriber experiences. (Source: Zuora Press Release, Mar. 29, 2023)

What are the trademarks associated with Zuora?

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: Zuora Press Release, Mar. 29, 2023)

How can I contact Zuora for media inquiries?

For media inquiries, contact Margaret Pack at press@zuora.com or call 619-609-3919. (Source: Zuora Press Release, Mar. 29, 2023)

Features & Capabilities

What features does Zuora offer for subscription management?

Zuora provides a suite of products for managing the entire subscription lifecycle, including Zuora Billing (flexible billing for recurring, usage-based, and one-time pricing), Zuora Revenue (automated revenue recognition), Zuora Payments (global payment management), Zuora CPQ (configure, price, quote for recurring revenue), Zephr (personalized subscription journeys), and Zuora Collections (AI-powered collections). Learn more.

Does Zuora support integration with other business systems?

Yes, Zuora offers over 60 pre-built connectors (including Salesforce, HubSpot, NetSuite, Snowflake), REST and SOAP APIs, warehouse connectors (Databricks, BigQuery, RedShift), and supports over 40 payment gateways. The Connect Marketplace features nearly 100 apps for extended functionality. Learn more.

What APIs does Zuora provide?

Zuora provides REST and SOAP APIs for seamless integration with external systems. The REST API is designed for modern integration needs, while the SOAP API is ideal for detailed applications. Developer resources and documentation are available at the Zuora Developer Center.

What technical documentation is available for Zuora?

Zuora offers extensive technical documentation, including platform docs, developer resources, SDKs, and integration guides. Access these resources at the Zuora Docs Portal and Developer Center.

What real-time product performance metrics does Zuora provide?

Zuora provides real-time metrics on 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.

Security & Compliance

What security and compliance certifications does Zuora hold?

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 validate Zuora's commitment to enterprise-grade security and regulatory compliance. Learn more.

How does Zuora ensure data security and privacy?

Zuora employs enterprise-grade security measures such as data encryption, role-based access controls, regular audits, and built-in compliance features to protect customer data and ensure adherence to global standards like GDPR, PCI DSS, and SOX.

Use Cases & Industries

Who can benefit from using Zuora?

Zuora is designed for subscription-based businesses across industries such as technology, SaaS, media, publishing, healthcare, consumer goods, retail, manufacturing, IoT, telecommunications, and OTT/entertainment. It supports finance, IT, product, operations, sales, and customer success teams. Learn more.

What industries are represented in Zuora's case studies?

Zuora's case studies span collaborative work management (SaaS), communications, consumer goods/retail, corporate services, energy/utilities, finance, healthcare, high tech, home services, HR technology, manufacturing/IoT, media/publishing, OTT/entertainment, software/technology, telecommunications, and video games. See all case studies.

Customer Success & Business Impact

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 enhanced financial operations. For example, Swiftpage saw a 140% increase in subscription customers and 131% ARR growth, while Hudl saved over 100 hours per month by automating processes. See more examples.

Can you share specific case studies or success stories?

Yes. Zoom scaled from 10 million to 300 million users using Zuora. The Financial Times grew digital subscriptions, Asana scaled its business, Hudl saved over 100 hours per month, and The Seattle Times improved new subscription conversions by 30% and retention by 25% after 6 months on Zuora. Read case studies.

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

Customers like Mindflash, TripAdvisor, FireHost, Briggs & Stratton, Buildium, and AppFolio have praised Zuora for its flexibility, ease of use, rapid pricing changes, and improved reporting. For example, TripAdvisor reduced sync times from 5 hours to 5 minutes, and AppFolio saw less stressful close cycles and improved team morale. See testimonials.

Implementation & Support

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.

What resources are available to help new customers get started?

Zuora offers Quick Start Tutorials, Zuora University (with 500+ courses and certifications), 24x5 live global support, email and ticketing support, developer resources, and a community portal for peer engagement. Learn more.

What support options does Zuora provide?

Zuora provides 24x5 live global support, email support, online ticketing, and premium support options such as Technical Account Managers (TAMs) and Enterprise Solution Architects (ESAs) for personalized assistance. Visit the Support Portal.

Pain Points & Solutions

What common pain points does Zuora address for its customers?

Zuora addresses slow, manual close cycles, ASC 606/IFRS 15 compliance, scaling usage and hybrid monetization, multi-entity/currency compliance, cash flow and collections, data quality, spreadsheet dependency, quote-to-cash misalignment, forecasting pipeline, IPO/PE readiness, and order-to-cash process breakdowns. Learn more.

What core problems does Zuora solve for subscription businesses?

Zuora automates financial close cycles, ensures compliance with accounting standards, supports diverse pricing models, simplifies global operations, automates collections, provides unified reporting, reduces spreadsheet dependency, aligns quote-to-cash processes, and prepares businesses for IPO/PE readiness.

Competitive Positioning

Why should a customer choose Zuora over other subscription management solutions?

Zuora offers flexibility (50+ pricing models), scalability (proven by Zoom's growth), AI-powered tools (Zephr for personalization Day 1), hybrid monetization, audit-ready compliance (SOC 2, PCI DSS), and a track record of success with leading brands. These strengths make Zuora suitable for entry-level, mid-market, and enterprise users. See customer stories.

Zuora Subscription Economy Index Continues to Outpace the S&P 500 Despite Global Macroeconomic Conditions

Recurring revenue business models find multiple opportunities for growth even in a turbulent economy

REDWOOD CITY, Calif. – Mar. 29, 2023 – Zuora, Inc. (NYSE: ZUO), a leading monetization platform provider for recurring revenue businesses, today released its latest Subscription Economy Index™ (SEI) report, which found subscription-based companies in the SEI have experienced 3.7x faster growth rates than the S&P 500 over the past 11 years.

2022 reached an economic turning point with concerns of inflation, ongoing supply chain disruptions, rising geopolitical tensions and the continued threat of COVID-19 variants,[1]  which often resulted in tighter budgets. However, the latest SEI report shows recurring revenue businesses continue to grow by acquiring new customers, retaining existing ones and expanding revenue with new add-ons and packages.

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

  • Subscription businesses in the SEI continue to outpace the S&P 500: In 2022, the SEI experienced 12% revenue growth compared to 10.6% for the S&P 500.
  • Even as budgets tighten, churn rates remain relatively consistent: SEI average quarterly churn was 6.36% in 2022 compared to 6.13% in 2018.
  • Subscriber acquisition is trending up since pandemic lows: Companies acquired new subscribers at higher rates in 2022 compared to the two years prior.
  • Average revenue per account (ARPA) growth continues to show a positive trendline, but slowed in 2022: 2022 ARPA growth rates were lower than 2021, decreasing from 1.89% in Q2 to 0.97% in Q4. ARPA growth can slow when companies offer customers the flexibility to downgrade or pause their subscriptions, or when using promotional pricing to attract new subscribers. Both are best practices to add and maintain subscribers, especially in an uncertain market.
  • SaaS continues to be the fastest-growing sector in the SEI: The Software as a Service (SaaS) sector outperformed other SEI sectors in 2022, with 12.3% revenue growth on average.

“Despite economic headwinds, spending habits are still trending positively toward digital services and experiences offered through subscriptions,” said Amy Konary, Founder and Senior Vice President of The Subscribed Institute at Zuora. “Recurring revenue models can offer subscribers predictable spending opportunities with clear value and savings over time. Finding ways to be indispensable with products and services that customers value will be key.”

The latest SEI report also includes the impact of businesses with subscription revenue by sector covering businesses in SaaS, Media and Manufacturing, as well as by region in EMEA and APAC.

Zuora’s Subscription Economy Index analyzes the growth and resilience of recurring revenue businesses. Comprised of anonymized, aggregated, system-generated activity on the Zuora Billing service, the SEI measures the change in the volume of business for subscription-based products and services across more than 500 businesses. The index represents a range of flexible recurring pricing models, such as consumption and time-based memberships. The SEI report is intended to view trends in the Subscription Economy® as a whole.

The Subscription Economy Index report is available for download here.

About Zuora, Inc.
Zuora provides a leading monetization platform for recurring revenue businesses across all industries, enabling companies to unlock customer-centric business models. After starting with Zuora Billing in 2007, Zuora’s award-winning multi-product portfolio now also includes Zuora Revenue, Zuora Collect, and Zephr, all powered by the Zuora Platform. Zuora serves as an intelligent hub that monetizes and orchestrates the complete quote to cash and revenue recognition process at scale. Through its industry leading technology and expertise, Zuora helps more than 1,000 companies around the world, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric, Siemens and Zoom nurture and monetize direct, digital customer relationships. Headquartered in Silicon Valley, Zuora operates offices around the world in the U.S., EMEA and APAC. To learn more about the Zuora monetization platform, please visit www.zuora.com.

© 2023 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.

Forward-Looking Statements
This press release 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 subscription-based companies (including companies in the SEI report) and non-subscription 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. The SEI report also includes market data and certain other statistical information and estimates from other parties, including industry analysts and 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.

[1] “Economic conditions outlook,” McKinsey & Company, December 2022

SOURCE: ZUORA FINANCIAL

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

March 29, 2023