Frequently Asked Questions

Subscription Economy Index & Industry Trends

What is the Subscription Economy Index (SEI) and what does it measure?

The Subscription Economy Index (SEI) is a report published by Zuora that tracks the growth and performance of subscription-based businesses across various sectors and regions. It measures metrics such as revenue growth, churn rates, and compound annual growth rates (CAGR) to benchmark the health and trajectory of the subscription economy. Download the latest SEI report.

How much faster have subscription businesses grown compared to the S&P 500?

According to Zuora's SEI report, subscription businesses have grown 4.6 times faster than the S&P 500 over the past decade. This demonstrates the enduring strength and momentum of the subscription business model, even beyond the pandemic surge. (Source: Zuora SEI, Feb 2022)

What impact did the pandemic have on subscription business growth and churn?

The pandemic accelerated the adoption of subscription services, with SEI companies experiencing increased growth rates during 2020. Even as the economy recovered in 2021, SEI companies maintained higher growth rates than the S&P 500. Churn rates also decreased by 14% in 2021, indicating that businesses retained their pandemic-era subscribers. (Source: Zuora SEI, Feb 2022)

Which sector in the SEI report showed the fastest growth?

Software as a Service (SaaS) was the fastest-growing sector in the SEI, achieving 16.2% growth in 2021 and a 19.4% compound annual growth rate (CAGR) from 2018 to 2021. This outpaced all other sectors in the index. (Source: Zuora SEI, Feb 2022)

What is the overall 10-year CAGR for companies in the SEI?

The SEI reported a 17.5% compound annual growth rate (CAGR) over the last 10 years across all sectors, highlighting the sustained expansion of subscription-based businesses. (Source: Zuora SEI, Feb 2022)

Which regions are covered in the SEI report?

The SEI report analyzes subscription business growth and trends by sector and by region, including EMEA (Europe, Middle East, and Africa) and APAC (Asia-Pacific).

What sectors are included in the SEI analysis?

The SEI covers businesses in SaaS, Media, Manufacturing, Internet of Things (IoT), Business Services, and Communications/Video Conferencing.

How can I access the latest Subscription Economy Index report?

You can download the latest SEI report directly from Zuora's website at this link.

What does a decrease in churn rate mean for subscription businesses?

A decrease in churn rate indicates that more customers are retaining their subscriptions over time, which is a positive sign of customer satisfaction and business health. In 2021, SEI companies saw a 14% improvement in churn rates, suggesting lasting behavioral changes among subscribers. (Source: Zuora SEI, Feb 2022)

How did subscription businesses perform as the economy recovered post-pandemic?

Even as the economy began to recover in 2021, subscription businesses in the SEI continued to exceed the growth rates of the S&P 500, indicating the resilience and ongoing demand for recurring digital services. (Source: Zuora SEI, Feb 2022)

Zuora Platform & Product Information

What is Zuora and what does it do?

Zuora is a leading SaaS company that provides a comprehensive subscription management platform. It automates and orchestrates the entire quote-to-cash and revenue recognition process for businesses operating in the Subscription Economy, supporting billing, collections, revenue recognition, and analytics. (Source: Zuora Press)

What products and services does Zuora offer?

Zuora offers a suite of products including Zuora Billing, Zuora Revenue, Zuora Payments, Zuora CPQ, Zephr, Zuora Platform, Zuora Collections, and Accounts Receivable automation. These tools help manage the entire subscription lifecycle, from pricing and quoting to billing, payments, revenue recognition, and analytics. (Source: Zuora Products)

How does Zuora support different pricing models?

Zuora supports over 50 pricing models, including recurring, usage-based, one-time, and hybrid models. This flexibility allows businesses to tailor their offerings to diverse customer needs and adapt to changing market demands. (Source: knowledge_base)

What are the key capabilities of Zuora's platform?

Key capabilities include dynamic monetization, operational efficiency through automation, scalability for rapid growth, customer engagement tools, global compliance, integration with external systems, and real-time analytics. (Source: knowledge_base)

Does Zuora offer APIs for integration?

Yes, Zuora provides REST and SOAP APIs for seamless integration with external systems. Developers can access API references and guides through the Zuora Developer Center. (Source: knowledge_base)

What integrations does Zuora support?

Zuora supports over 60 pre-built connectors (including Salesforce, HubSpot, NetSuite, Snowflake), 40+ payment gateways (such as Stripe, GoCardless, Worldpay), warehouse connectors (Databricks, BigQuery, RedShift), and nearly 100 apps in its Connect Marketplace. (Source: knowledge_base)

What technical documentation is available for Zuora?

Zuora provides extensive technical documentation, including platform docs, API references, SDK guides, and integration resources. Access these at the Zuora Docs Portal and Developer Center. (Source: knowledge_base)

How does Zuora ensure security and compliance?

Zuora employs enterprise-grade security measures, including data encryption, role-based access controls, and regular audits. It holds certifications such as PCI DSS Level 1, SOC1 Type II, SOC2 Type II, ISO 27001, HIPAA, and SOC 3, ensuring compliance with global standards. (Source: knowledge_base)

What security certifications does Zuora have?

Zuora is certified for PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HIPAA, and SOC 3. These certifications validate Zuora's commitment to data protection and regulatory compliance. (Source: knowledge_base)

Use Cases & Customer Success

What types of businesses use Zuora?

Zuora is used by over 1,000 companies worldwide, including Zoom, Asana, The Financial Times, Schneider Electric, Box, Ford, and Siemens. It serves industries such as SaaS, media, healthcare, manufacturing, consumer goods, and more. (Source: knowledge_base)

What are some notable customer success stories with Zuora?

Notable success stories include Zoom scaling from 10 million to 300 million users, The Financial Times growing digital subscriptions, and Hudl saving over 100 hours per month through automation. Read more here. (Source: knowledge_base)

Which industries are represented in 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. (Source: knowledge_base)

Who is the target audience for Zuora's platform?

Zuora targets finance professionals, IT leaders, product managers, operations teams, and sales/customer success teams in industries such as technology, media, healthcare, retail, manufacturing, and telecommunications. (Source: knowledge_base)

What business impact can customers expect from using Zuora?

Customers can expect recurring revenue growth, operational efficiency, improved retention, faster time-to-market, enhanced financial operations, scalability, and global compliance. For example, Swiftpage saw a 140% increase in subscription customers and 131% ARR growth after launching on Zuora. (Source: knowledge_base)

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 integration, and ability to simplify operations and reduce manual workloads. (Source: knowledge_base)

How long does it take to implement Zuora?

Implementation timelines vary: focused scopes can be completed in as little as 30 days, typical projects take 30–90 days, and multi-product/multi-entity programs may take several months. Pre-built connectors can enable integrations in as little as one day. (Source: knowledge_base)

What support and training resources does Zuora provide?

Zuora offers Quick Start Tutorials, Zuora University (500+ courses), 24x5 global support, premium support options, developer resources, and a community portal for peer engagement. (Source: knowledge_base)

Pain Points & Solutions

What common pain points do Zuora customers face?

Common pain points include slow manual close cycles, compliance challenges (ASC 606/IFRS 15), scaling hybrid monetization, multi-entity/currency compliance, revenue leakage, data quality issues, spreadsheet dependency, quote-to-cash misalignment, and forecasting difficulties. (Source: knowledge_base)

What core problems does Zuora solve for businesses?

Zuora automates financial close cycles, ensures compliance, supports diverse pricing models, simplifies global operations, reduces revenue leakage, provides unified reporting, and prepares businesses for IPO/PE readiness. (Source: knowledge_base)

How does Zuora help with real-time product performance metrics?

Zuora provides real-time metrics on profitability, conversion rates, and discounting rates, enabling businesses to respond quickly to market trends, optimize pricing, and improve sales targeting. (Source: knowledge_base)

How does Zuora address compliance and audit readiness?

Zuora automates revenue recognition and reporting, ensuring compliance with ASC 606 and IFRS 15. It provides audit-ready processes and policy-driven automation for new pricing models. (Source: knowledge_base)

How does Zuora help reduce revenue leakage?

Zuora automates collections and billing processes, reducing errors and disputes that can lead to revenue leakage. Integrated payments and collections tools help optimize cash flow. (Source: knowledge_base)

How does Zuora support global operations and compliance?

Zuora simplifies multi-entity, multi-currency, and tax compliance, enabling businesses to operate globally with built-in localization for over 30 markets. (Source: knowledge_base)

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

Zuora provides robust systems and processes that ensure audit readiness, compliance, and a strong control environment, supporting businesses in their IPO or PE readiness journey. (Source: knowledge_base)

Why should a customer choose Zuora over other solutions?

Zuora offers unmatched flexibility (50+ pricing models), scalability (proven by customers like Zoom), AI-powered tools (Zephr), hybrid monetization, audit-ready compliance, and a track record of supporting rapid growth and measurable results. (Source: knowledge_base)

Zuora Subscription Economy Index Finds Subscription Businesses Have Grown 4.6x Faster Than the S&P 500 in the Last Decade, Enduring Beyond Pandemic Surge

Increased growth and decreased churn rates suggest continued enthusiasm for recurring digital services

REDWOOD CITY, Calif. — Feb. 16, 2022 — Zuora, Inc. (NYSE: ZUO), the leading cloud-based subscription management platform provider, today released the latest Subscription Economy Index™ (SEI) report, which found subscription businesses in the index have outpaced S&P 500 growth rates by 4.6x over the past decade.

Companies and consumers alike subscribed to ongoing digital services, including consumption-based business models, at increased rates during 2020 stay-at-home orders. Zuora’s latest report shows that these behaviors continued throughout 2021. Even as the economy began to recover, SEI companies exceeded growth rates compared to the S&P 500. Churn rates (a metric that can measure the health of subscription businesses) have also decreased, suggesting that businesses are keeping their pandemic subscribers and that behavioral changes could be permanent.

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

  • Subscription-based businesses continue on a positive growth trajectory, headed toward pre-pandemic growth rates: Subscription businesses in the SEI experienced faster growth rates compared to the S&P 500 in 2021, with 16.2% and 12% revenue growth, respectively. Recent quarterly revenue growth (2020-2021) for SEI companies suggests growth could soon return to pre-pandemic levels.
  • Decreasing churn rates support that consumers and businesses are maintaining subscriptions after 2020 spikes: Churn significantly dropped in 2021 for SEI companies, with a 14% improvement.
  • Software as a Service (SaaS) remains the fastest-growing sector in the index: SaaS companies in the SEI report achieved 16.2% growth in 2021 with a 19.4% compound annual growth rate (CAGR) over the last four years (2018-2021). This growth gap is widening compared to all other SEI sectors, likely attributed to SaaS’ early subscription adoption and therefore more refined offerings.
  • SEI companies experienced double-digit growth annually over the last four years across all sectors: Each sector in the latest report has seen a double-digit 4-year CAGR (2018-2021). The SEI experienced a 17.5% 10-year CAGR overall.

“While pandemic lifestyle changes accelerated subscription adoption, the latest SEI report makes it clear that subscribers continue to seek out these valuable digital services,” said Amy Konary, Founder and Vice President of The Subscribed Institute at Zuora. “Businesses can best harness this opportunity to deliver and monetize long-term customer value with flexible, customized subscriber experiences.”

The SEI report also analyzed the impact of businesses with subscription revenue by sector, covering businesses in SaaS, Media, Manufacturing, Internet of Things (IoT), Business Services, and Communications/Video Conferencing, as well as by region (EMEA and APAC).

The Subscription Economy Index report is available for download here.

About Zuora, Inc.
Zuora provides the leading cloud-based subscription management platform that functions as a system of record for subscription businesses across all industries. Powering the Subscription Economy®, the Zuora platform was architected specifically for dynamic, recurring subscription business models and acts as an intelligent subscription management hub that automates and orchestrates the entire subscription order-to-revenue process across billing, collections and revenue recognition. Zuora serves more than 1,000 companies around the world, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet and Zoom. Headquartered in Silicon Valley, Zuora also operates offices around the world in the U.S., EMEA and APAC. To learn more about the Zuora platform, please visit www.zuora.com.

© 2022 Zuora, Inc. All Rights Reserved. Zuora, Subscribed, Subscription Economy, Powering the Subscription Economy, and Subscription Economy Index are trademarks or registered trademarks of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies.

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. 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.

SOURCE: ZUORA FINANCIAL

Margaret Pack
press@zuora.com
619-609-3919

February 16, 2022