We are investigating Zuora, Inc. (ZUO) (“Zuora” or the “Company”) for potential violations of the federal securities laws.
In May 2017, Zuora acquired Leeyo Software Inc., thereby acquiring a revenue recognition automation product that the Company subsequently renamed Zuora RevPro (“RevPro”). On May 30, 2019, the Company lowered its fiscal 2020 revenue guidance to a range of $268 million to $278 million, down significantly from prior guidance of $289 million to $293.5 million, citing problems integrating RevPro, as well as sales execution problems. On this news, the Company’s stock price fell $5.91 per share, nearly 30%, to close at $13.99 per share on May 31, 2019.