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DisclaimerThis presentation contains non-GAAP financial measures. You can find the reconciliation of these measures to the mostdirectly comparable GAAP financial measure in the Appendix at the end of this presentation. The non-GAAP financialmeasures disclosed by Zuora should not be considered a substitute for, or superior to, the financial measures prepared inaccordance with GAAP. Please refer to “Explanation of Non-GAAP Financial Measures” in the Appendix for a detailedexplanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAPmeasures and the reasons why management believes the non-GAAP measures provide investors with useful supplementalinformation.This presentation is intended to assist investors in understanding the impact of our implementation of Accounting StandardsUpdate No. 2014-09, Revenue from Contracts with Customers (ASC 606), and to assist with comparing our historical resultsagainst our future results on an ASC 606 basis. Our historical results prepared under GAAP for fiscal years 2018 and 2019can be found in Zuora’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 18,2019. Zuora’s FY19 Form 10-K and other SEC filings are available free of charge on Zuora’s Investor relations website and on the SEC’s website at

ASC 606 IMPACT TO ZUORA COMPARED TO ASC 605 FOR FY 2019Revenue Immaterial impact to total revenue Subscription revenue lower by 4.0M Professional services revenue higher by 3.8M Impacts primarily due to an increased number of allocations of consideration between subscription and professionalservices and changes in the recognition of legacy on-prem contracts inherited in the Leeyo acquisitionOperating Loss Improvement in operating loss of 5.4M All incremental costs to obtain customer contracts, which primarily consist of commissions,will be amortized over a period of benefit of generally five yearsCash Flow No net operating or free cash flow impactOther Adoption date of February 1, 2019 Adoption approach is fully retrospective (FY 2018 and FY 2019 as adjusted)Note: All quarterly and annual financial data and other data presented are unaudited.

TOTAL REVENUE IMPACT - FY 2018 & FY 2019YoY Growth 167.9ASC 605FY 20184Note: All amounts are unaudited and may not sum due to rounding.ASC 605ASC 60640%37% 235.2 235.0ASC 605ASC 606 171.1ASC 606Q3 FY19( in millions)Q4 FY19Q1 FY20FY 2019

TOTAL REVENUE IMPACT - DETAILTotal RevenueFY 2019FY'18Q1'19Q2'19Q3'19Q4'19FY'19As Reported under ASC 605 167.9 51.7 57.8 61.6 64.1 235.2As Adjusted under ASC )( in millions)Impact5FY 2018Note: All amounts are unaudited and may not sum due to rounding.

SUBSCRIPTION REVENUE IMPACT - FY 2018 & FY 2019YoY Growth 120.4FY 2018Note: All amounts are unaudited and may not sum due to rounding.ASC 60640%35% 168.8 164.8 122.5ASC 6056ASC 605ASC 606Q3 FY19( in millions)ASC 605Q4 FY19ASC 606Q1 FY20FY 2019

SUBSCRIPTION REVENUE IMPACT - DETAILSubscription RevenueFY 2019FY'18Q1'19Q2'19Q3'19Q4'19FY'19As Reported under ASC 605 120.4 36.1 41.5 44.5 46.7 168.8As Adjusted under ASC 7)(4.0)( in millions)Impact7FY 2018Note: All amounts are unaudited and may not sum due to rounding.

GAAP OPERATING EXPENSES & MARGIN IMPACT - FY 2018 & FY 2019GAAP Operating Expenses 134.3ASC 606FY 2018(28%) 188.8ASC 605ASC 606 129.3ASC 605ASC 605 194.4Q3 FY19( in millions)ASC 606Q4 FY19FY 2019ASC 605GAAP Operating MarginNote: All amounts are unaudited and may not sum due to rounding.ASC 606(22%)(32%)8Q1 FY20(30%)

GAAP OPERATING EXPENSES & MARGIN IMPACT - DETAILFY 2018FY 2019FY'18Q1'19Q2'19Q3'19Q4'19FY'19 134.3 44.3 47.3 49.8 53.0 194.4Operating Loss(46.3)(18.6)(18.2)(18.3)(20.7)(75.8)Operating Margin(28%)(36%)(32%)(30%)(32%)(32%) 129.3 43.3 46.3 48.7 50.6 188.8Operating Loss(38.1)(16.8)(17.1)(17.5)(19.0)(70.4)Operating Margin(22%)(32%)(30%)(29%)(30%)(30%)As Reported under ASC 605Total Operating ExpensesAs Adjusted under ASC 606Total Operating ExpensesImpactTotal Operating Expenses (5.0) (1.0) (1.0) (1.1) (2.4) (5.6)Operating Loss8. Margin6%4%2%1%2%2%( in millions)9Note: All amounts are unaudited and may not sum due to rounding.

NON-GAAP OPERATING EXPENSES & MARGIN IMPACT - FY 2018 & FY 2019Non-GAAP Operating Expenses 178.1 129.3 124.3ASC 605ASC 606FY 2018ASC 605(21%)Q3 FY19( in millions)ASC 606(16%)Non-GAAP Operating Margin10 Note: All amounts are unaudited and may not sum due to rounding. 172.5ASC 605Q4 FY19ASC 606Q1 FY20FY 2019ASC 605ASC 606(20%)(18%)

NON-GAAP OPERATING EXPENSES & MARGIN IMPACT - DETAILFY 2018FY 2019FY'18Q1'19Q2'19Q3'19Q4'19FY'19 129.3 41.7 44.2 45.2 47.2 )(21%)(17%)(18%)(20%) 124.3 40.6 43.1 44.1 44.7 172.5Operating Loss(27.0)(11.9)(11.2)(9.8)(9.9)(42.8)Operating Margin(16%)(23%)(19%)(16%)(16%)(18%) (5.0) (1.1) (1.1) (1.1) (2.5) (5.6)Operating Loss8. Margin5%3%2%1%2%2%As Reported under ASC 605Total Operating ExpensesOperating LossOperating MarginAs Adjusted under ASC 606Total Operating ExpensesImpactTotal Operating Expenses( in millions)11 Note: All amounts are unaudited and may not sum due to rounding.

SELECTED BALANCE SHEET IMPACTFY 2018ASC 606ImpactFY 2019ASC 606Impact 9.3 13.6 4.3 10.4 14.6 4.2Deferred commissions, current portion-6.76.7-8.68.6Deferred commissions, net of current portion-14.914.9-18.718.7 66.1 62.0 (4.1) 90.6 86.8 (3.8)0.30.2(0.1)0.40.1(0.3)ASC 605ASC605AssetsPrepaid expenses and other current assetsLiabilitiesDeferred revenue, current portionDeferred revenue, net of current portion12 Note: All amounts are unaudited and may not sum due to rounding. The difference in Prepaid expenses and other current assets is due to the impact of contract assets under ASC 606.

NO NET OPERATING OR FREE CASH FLOW IMPACTCash Flow from Operations( 24.8)( 24.8)ASC 605ASC 606FY 2018Q3 FY19( in millions)ASC 605ASC 606( 29.5)( 29.5)Free Cash Flow13 Note: All amounts are unaudited and may not sum due to rounding.( 23.6)( 23.6)ASC 605ASC 606Q4 FY19Q1 FY20FY 2019ASC 605ASC 606( 37.0)( 37.0)

APPENDIXFinancial Statements With ASC 606 Adjustments

ASC 606 CONSOLIDATED GAAP INCOME STATEMENTSFY 2018FY 2019FY 2018Q1'18Q2'18Q3'18Q4'18Q1'19 26.1 30.7 31.6 34.0 '19Q4'19FY 2018FY 2019 40.9 43.1 45.0 122.5 0RevenueSubscriptionProfessional ServicesTotal RevenueCost of Professional al Cost of .220.326.125.626.429.231.231.691.2118.4Gross ProfitTotal Gross ProfitOperating ExpenseSales & esearch & eneral & al Operating 70.8)Loss from OperationsInterest and Other (Expense) Income, NetLoss before income taxIncome Tax Provision / (Benefit)Net LossEPSWeighted average shares outstanding150. 8.2)( 12.4)( 7.1)( 11.7)( 17.8)( 18.5)( 17.2)( 19.2)( 39.4)( 72.7)( 0.33)( 0.47)( 0.24)( 0.39)( 0.40)( 0.18)( 0.16)( 0.18)( 1.48)( te: All amounts are unaudited and may not sum due to rounding. Financials impacted by ASC 606 are highlighted.

ASC 606 CONSOLIDATED BALANCE SHEETSAssets( in thousands)Current assets:Cash and cash equivalentsShort-term investmentsAccounts receivable, net of allowance for doubtful accountsRestricted cash, current portionDeferred commissionsPrepaid expenses and other current assetsTotal current assetsProperty and equipment, net 48.2 202.5 179.2 77.9 52.4257.818.419.610.210.916.9Restricted cash, net of current portion5. intangibles, net9. commissions, net of current 617.6Other assets0. assets 176.5 329.2 310.3 317.8 326.0Accounts payable 2.6 3.5 2.8 2.7 1.5Accrued expenses and other current 6Liabilities and stockholders’ equityCurrent liabilities:Accrued employee liabilitiesDebt, current 62.3-110.7116.8109.6117.1128.1Debt, net of current portion12.110.89.611.510.5Deferred revenue, net of current portion0. obligation, net of current portion0.30.21.5--Other long-term 2Deferred revenue, current portionLease obligation, current portionTotal current liabilitiesTotal liabilitiesStockholders’ equity:Preferred stockConvertible PreferredClass A common stockClass B common stock0.0----- paid-in capital286.2455.6461.8472.1488.8Related party receivable(1.3)(5.6)(5.7)--Accumulated other comprehensive 307.5)50.6197.9185.9183.9181.8 176.5 329.2 310.3 317.8 326.0Accumulated deficitTotal stockholders’ equityTotal liabilities and stockholders’ equity16 Note: All amounts are unaudited and may not sum due to rounding. Financials impacted by ASC 606 are highlighted.


ASC 606 NON-GAAP RECONCILIATIONSCost of RevenueCost of subscription revenueGAAP cost of subscription revenue 6.0 8.1 8.2 8.8 9.9 10.4 0.5)(0.7)(0.7)(0.7)(0.6)(0.5)(0.5)Internal-use n-GAAP cost of subscription revenue 5.5 7.1 7.0 7.6 8.6 9.1 9.6 10.2 6.8 12.6 13.9 15.6 16.2 18.2 19.2 -0.0 6.6 12.2 13.2 14.7 15.1 16.8 17.5 18.3 31.6Stock-based compensationAmortization of acquired intangibles 11.7Cost of professional services revenueGAAP cost of professional services revenueStock-based compensationInternal-use softwareNon-GAAP cost of professional services revenueGross profitGAAP gross profit 19.2 20.3 26.1 25.6 26.4 29.2 31.2Stock-based compensation0. of acquired intangibles0. software0. 19.9 21.7 28.0 27.7 28.7 31.9 34.3 34.9GAAP gross margin60%50%54%51%50%50%51%50%Non-GAAP gross margin62%53%58%55%55%55%56%55%GAAP subscription gross margin77%74%74%74%73%75%74%74%Non-GAAP subscription gross margin79%77%78%78%76%78%78%77%Non-GAAP gross profitGross marginSubscription gross margin18Note: All amounts are unaudited and may not sum due to rounding.

ASC 606 NON-GAAP RECONCILIATIONSOperating expensesResearch and developmentGAAP research and developmentStock-based compensationInternal-use softwareNon-GAAP research and development 7.9 9.8 10.0 11.0 12.1 13.3 14.3 7.7 9.5 9,6 10.7 11.6 12.6 13.0 13.1 14.6 17.5 17.1 18.9 21.8 24.4 24.8 24.2(0.4)(0.6)(1,0)(0.7)(1.6)(1.5)(2.2)(2.1) 14.2 16.9 16.0 18.2 20.2 22.9 22.6 22.1Sales and marketingGAAP sales and marketingStock-based compensationNon-GAAP sales and marketingGeneral and administrativeGAAP general and administrative 4.7 5.6 5.6 6.8 9.4 8.6 9.6 11.7Stock-based 2)Internal-use software(0.0)--------------(1.0) 4.5 5.3 5.2 6.4 8.8 7.7 8.5 9.5Charitable DonationsNon-GAAP general and administrative19 Note: All amounts are unaudited and may not sum due to rounding.

ASC 606 NON-GAAP RECONCILIATIONSOperating lossGAAP operating loss (8.0) (12.5) (6.5) (11.1) (16.8) (17.1) (17.5) (19.0)Stock-based compensation1. of acquired intangibles0. le Donations-------1.0 (6.5) (10.0) (3.0) (7.5) (11.9) (11.2) (9.8) (9.9) (19.2)Non-GAAP operating lossNet loss (8.2) (12.4) (7.1) (11.7) (17.8) (18.5) (17.2)Stock-based compensationGAAP net loss1. of acquired intangibles0. le Donations-------1.0Non-GAAP net loss (6.7) (9.9) (3.5) (8.2) (12.8) (12.7) (9.5) (10.0)Net loss per shareGAAP net loss per share (0.33) (0.47) (0.24) (0.39) (0.40) (0.18) (0.16) (0.18)Non-GAAP net loss per share (0.27) (0.38) (0.12) (0.27) (0.29) (0.12) (0.09) (0.10)20 Note: All amounts are unaudited and may not sum due to rounding.

Explanation of Non-GAAP Financial MeasuresIn addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), these materialsand the accompanying tables contain non-GAAP financial measures, including non-GAAP cost of subscription revenue, non-GAAP costof professional services revenue, non-GAAP gross profit, non-GAAP subscription gross margin, non-GAAP total gross margin, non-GAAPsales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense,non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share attributable to common stockholders, and free cashflow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to,financial information prepared and presented in accordance with GAAP.We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, includingthe preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and tocommunicate with our board of directors concerning our financial performance. We believe these non-GAAP measures provideinvestors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of ouroperating results. We believe these non GAAP measures are useful in evaluating our operating performance compared to that of othercompanies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasonsunrelated to overall operating performance.We exclude the following items from one or more of our non-GAAP financial measures:Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of ournon-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regardingoperational performance. In particular, stock-based compensation expense is not comparable across companies given it is calculatedusing a variety of valuation methodologies and subjective assumptions.21

Explanation of Non-GAAP Financial MeasuresAmortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a noncash expense, fromcertain of our non-GAAP financial measures. We exclude these amortization expenses because we do not believe these expenses havea direct correlation to the operation of our business.Internal-use software. We exclude capitalization and the subsequent amortization of internal-use software, which is a non-cash expense,from certain of our non-GAAP financial measures. We capitalize certain costs incurred for the development of computer software forinternal use and then amortize those costs over the estimated useful life. Capitalization and amortization of software development costscan vary significantly depending on the timing of products reaching technological feasibility and being made generally available.Moreover, because of the variety of approaches taken and the subjective assumptions made by other companies in this area, webelieve that excluding the effects of capitalized software costs allows investors to make more meaningful comparisons between ouroperating results and those of other companies.Charitable donations. We exclude expenses associated with the charitable donation of our common stock from certain of ournon-GAAP financial measures. We believe that excluding this non-recurring and non-cash expense allows investors to make moremeaningful comparisons between our operating results and those of other companies.Additionally, Zuora’s management believes that the free cash flow non-GAAP measure is meaningful to investors because managementreviews cash flows generated from operations after taking into consideration capital expenditures as these expenditures areconsidered to be a necessary component of ongoing operations.Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting theirusefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP itemsexcluded from these non-GAAP financial measures.22

ASC 605 ASC 606 40% 35% ASC 605 ASC 606 FY 2018 ( in millions) FY 2019 Note: All amounts are unaudited and may not sum due to rounding. 6. As Reported under ASC 605 120.4 36.1 41.5 44.5 46.7 168.8 As Adjusted under ASC

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