Zuora Shares Up 42% Following IPO

San Mateo-based Zuora, a subscription-management company, went public on the New York Stock Exchange Thursday at $14 per share. The stock closed the day at $20 per share for a 42.86% gain and sold 11 million shares to the public.

Goldman Sachs and Morgan Stanley acted as the joint lead bookrunners for the offering. Allen & Company and Jefferies acted as bookrunners. Canaccord Genuity and Needham & Company acted as co-managers.

CEO Tien Tzuo founded Zuora in 2007 by creating cloud-based software to help companies launch, manage and transform their subscription business. Tzuo was the 11th employee hired at

The company reported $167.9 million in revenues for fiscal 2018 and losses of $47.2 million. It has yet to turn a profit.

Zuora says it has over 900 clients worldwide including Box, HBO, Ford, Caterpillar, and GE. The company has more than 850 employees in eight countries and $242 million in funding from investors Wellington Management, Blackrock and Benchmark Capital. Other investors include Dave Duffield, co-founder of Workday, and Marc Benioff, CEO and founder of

Benchmark is the largest investor in Zuora with 11.1% stake in the company. Wellington Management has 9.4% stake and Shasta Ventures holds 8.3%. CEO Tzuo has a 10.2% stake in the company.

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