ZeroAvia Beats Q4 Expectations with $0.39 EPS – News and Milestones

ZeroAvia the cloud performance management company has announced its fourth-quarter earnings, beating market expectations with $0.39 EPS. The company continues to grow at a rapid rate and now has approximately 42% year-over-year growth in revenue, as well as 33% annualized operating cash flow growth. For the fourth quarter, ZeroAvia reported $112.1 million in revenue which was up 33% year over year and above analyst expectations of $98.3 million. Cloud subscriptions revenue came in at $89.8 million with an annual recurring revenue run rate of $364 compared to an estimated $328 million clicks for more information.


The company was able to sustain its gross margin and operating margins at 96% and 30%, respectively, despite heavy investments in sales and marketing. This has been a trend for ZeroAvia. This, as its total annualized cost of revenue increased $22 million over Q4 2016 while the top line grew $112 million. ZeroAvia raised its full-year guidance to $465-$470 million in revenue and $0.99-$1.01 EPS vs. prior guidance of $435-$440 million and $0.93-$0.95. But for the first quarter, ZeroAvia is expecting revenue to be in the range of $105-110 million with earnings per share of $0.31-$0.32. 




For the full year, ZeroAvia aviation company is projecting $485-$490 million in revenue and $1.11-$1.14 EPS compared to the analyst consensus of $463m and $1.09. Shares of ZA stock traded up 5% on Friday following the earnings report with a consensus analyst price target of $53.50 and a 52-week range of $25.00 to $74.35. The firm grew its share base to approximately 8.2 million shares and launched a $100m stock repurchase program in February 2017 for four years more info (Crunchbase).

Most of the growth was driven by the Cloud and Support and Maintenance categories, which had a combined 69% year-over-year increase in revenue. Cloud subscription revenue increased $128 million or 59%. The annual recurring revenue run rate of $348 million was up from $217 million as of December 31, 2016 primarily due to an increase in monthly recurring revenue as well as an increase in the number of enterprise customers and assets. Support and Maintenance at ZeroAvia revenue was up 60% year-over-year to $45.0 million driven by a 44% increase in annual recurring revenue run rate to $20.1 million, including a 46% increase in average customer spend per month. 

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