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Zuora adds new director to board amid strategy shift

Published 01/05/2024, 22:06
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REDWOOD CITY, Calif. - Zuora, Inc. (NYSE: NYSE:ZUO), a company specializing in monetization software for businesses, announced the appointment of John D. Harkey, Jr. to its Board of Directors, effective as of April 30, 2024. The appointment comes as part of a cooperation agreement with investment firm Scalar Gauge Fund, LP, which holds approximately 3.7% of Zuora's outstanding class A common shares.

The addition of Harkey, a seasoned executive with over 25 years of leadership experience, expands the Zuora Board to ten members, nine of whom are independent. Harkey's diverse background includes roles as chief executive, director, and private investor in various industries, and he currently holds positions at JDH Investment Management, LLC and Consolidated Restaurant Companies, Inc.

Zuora's Lead Independent Director, Jason Pressman, expressed confidence in Harkey's ability to contribute to the company's growth, citing his extensive experience. Tien Tzuo, Zuora's Founder, CEO, and Chairman of the Board, emphasized Harkey's financial expertise and experience in customer-centric industries as valuable assets for the company's strategic transformation efforts.

Harkey's appointment is in line with Zuora's ongoing efforts to enhance its go-to-market strategy, modularize product offerings, and expand its portfolio. He will serve as a Class I Director with a term expected to expire at the 2025 Annual Meeting.

The cooperation agreement with Scalar Gauge includes standard standstill, voting, and non-disparagement clauses, and a complete copy will be filed with the U.S. Securities and Exchange Commission.

Sumit Gautam, Founder and Portfolio Manager of Scalar Gauge, spoke positively about the engagement with Zuora and the potential value Harkey's addition to the board could bring.

InvestingPro Insights

As Zuora, Inc. (NYSE: ZUO) welcomes John D. Harkey, Jr. to its Board of Directors, investors may be keen to look at the company's financial health and market performance to better understand its potential trajectory. According to recent data from InvestingPro, Zuora holds a market capitalization of approximately $1.45 billion USD. This valuation comes amidst a period of revenue growth, with the last twelve months as of Q4 2024 seeing an increase of 8.98%, signaling a positive trend in the company's earnings capability.

Zuora's commitment to strategic transformation and market expansion may be further underscored by two notable InvestingPro Tips. Firstly, the company is recognized for holding more cash than debt on its balance sheet, which could provide financial flexibility in pursuing its growth initiatives. Secondly, analysts have a positive outlook on Zuora's profitability, predicting the company will be profitable this year, a significant milestone that could reflect on the company's share price.

Additional metrics that could be of interest to investors include a Price / Book ratio of 10.83 as of the last twelve months ending Q4 2024, which may indicate the market's valuation of the company relative to its book value. Investors should also note the substantial price uptick over the last six months, with a 36.19% increase, suggesting a bullish sentiment in the market towards Zuora's stock.

For those looking to delve deeper into Zuora's financials and market performance, there are more InvestingPro Tips available, which could provide valuable insights into the company's future. You can access these additional tips by visiting https://www.investing.com/pro/ZUO. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of expert analysis and data to inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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