Zuora achieves 137% growth in new Annual Contract Value, as major European enterprises transform business models to meet customer demand for personalised subscription experiences
Zuora doubles employees and opens four new offices in London, Paris, Amsterdam and Munich
United Kingdom, London, 24 September 2014
- Zuora, the subscription commerce, billing and finance leader, has experienced 137% growth in Annual Contracted Value ending in July 2014 as businesses increasingly undertake the transformation of their pricing and delivery models to meet changing consumer requirements.
- Delivering SaaS applications for subscription business models, Zuora has enabled nearly 100 subscription businesses in Europe to introduce a strategy of Relationship Business Management, allowing them to nurture long term relationships with their customers, founded on rich subscription experiences.
- Since July 2013, Zuora has grown its customer base in Europe by 80%, acquiring leading, innovative international enterprise businesses including The Guardian, GDF Suez, Unify, and RTL Nederlands. As a result Zuora has secured over $2 billion in additional contracted volume in the last 12 months alone and has seen usage volume more than double, reflecting customer success in leveraging the subscription model platform
- With four out of five businesses recognising that their customers are switching to new consumption models, according to research conducted by the Economist Intelligence Unit, and 72% confirming that their own business’ consumption preference is shifting to rental and subscription models, Zuora foresees the continued expansion of the subscription economy.
- Tien Tzuo, Founder and CEO, Zuora said, “Our vision and belief has always been that we would see the world subscribed, and the momentum we are experiencing in Europe is proof that businesses are prioritizing their customers’ needs and building experiences that are compelling to nurture lasting relationships. They are becoming Relationship Businesses, and this involves significant business and technical transformation.”
- In the last year, Zuora has increased its European employee-base by 50% with offices in London, Paris, Munich and Amsterdam, and continued to expand its teams in France, Germany, Nordics and Benelux. With initial investment from leading European fund, Index Ventures, of $36million in 2011 and further investment from Next World Capital, an international expansion-stage venture capital firm in 2013, Zuora has now raised over $130 million and aims to continue to use these funds to expand internationally across Europe.
- Today Zuora is hosting Subscribed Europe 2014, the only conference designed to help leaders in finance, IT, marketing, operations and sales embrace subscription models to reinvent and modernise their businesses. Over 700 industry professionals join speakers including senior executives from KCOM, The Guardian, Financial Times, GDF and Accenture to address how businesses should adapt to the evolution of the subscription economy.
Frédéric Halley, Venture Partner, Next World Capital comments:
“The Subscription Economy is gathering pace, and the increase in businesses adopting this model in Europe is evident. Over the next five years we expect to see a number of enterprise businesses recognising the financial benefits of adopting a subscription offering which has the ability to grow and nurture long-term customer relationships. A number of firms currently operate with legacy models which are insufficient to manage this change and those firms ought to be considering how they will address this now.”
Pete Tomlinson, Sales & Marketing Director, Eclipse said:
“With the convergence of the traditional software and communications industries, businesses are rightly demanding that technology should be easy and enjoyable to use. The shift from traditional product based transactional sales models, towards developing the kind of service-led, long-term relationships new Subscription Economy demands, is central to delving on this ambition and our continued 35% annual sales growth. Having the right underpinning systems is critical to our success and Zuora is a fundamental part of building a new kind of business model.
Vincent Deriot, CIO, Neopost said:
“As a European business that operates globally, we see subscriptions as an important part of our business model going forward. With the subscription model, we can offer our customers flexible pricing models to better meet their needs. We manage distribution in global markets with different operational cultures, currencies and mindsets. We needed a flexible and scalable solution that would allow us to gain traction in all our markets; we chose Zuora.”
About Zuora, Inc.
Zuora is the global leader in Relationship Business Management (RBM) solutions, helping companies in every industry transition to the Subscription Economy. Enterprise leaders and high-growth companies alike use Zuora’s multi-tenant cloud platform to launch, scale, and monetize their subscription services. Zuora’s applications work where traditional ERP applications fail: Subscription pricing, quoting, orders, billing, payments, and renewals. Built from the ground up by SaaS industry veterans from salesforce.com, PayPal, and Netsuite, Zuora services innovative customers like
Reed Business Information.
To learn more about Zuora, please visit zuora.com
Research conducted amongst 293 companies globally by Economist Intelligence Unit in conjunction with Zuora