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.

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 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