Good afternoon, and welcome to Zuora's second quarter fiscal 2022 earnings conference call. At this time, all participants are in listen-only mode. Later, we'll conduct a question and answer session, and a structure will follow at that time. If anyone should require assistance during the conference, please press star zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would like to turn the conference over to your host, Ms. Luana Wolk, Head of Investor Relations, for introductory remarks. Thank you. Good afternoon, and welcome to Zuora's second quarter fiscal 2022 earnings conference call. Joining me today are Tien Tzuo, Zuora's Founder and Chief Executive Officer, and Todd McElhatton, Zuora's Chief Financial Officer. We'll also have Robbie Traube, our Chief Revenue Officer, joining us for the Q&A session. The purpose of today's call is for us to review our second quarter results and provide a financial outlook for the upcoming third quarter and fiscal 2022. Some of our discussion and responses today will include forward-looking statements. As a reminder, our actual results could differ materially due to a variety of factors. You can find information regarding those risk factors in the earnings release we issued today and our most recent filings with the SEC. Finally, we will be referring to several non-GAAP financial measures today, and reconciliations to related GAAP measures are included in our earnings release. For a copy of our earnings release, links to our SEC filings, a replay of today's call, or to learn more about Zuora, please visit our investor relations website at investor.zuora.com. With that, I'll turn it over to Tien. Thank you, Luana, and thank you all for joining Zuora's second quarter fiscal 2022 earnings call. To start, let me say that I'm very pleased with our Q2 results. We once again delivered a strong quarter, exceeding the guidance we provided across our operating metrics, including total revenue, subscription revenue, and non-GAAP loss from operations. The results of this quarter show that the innovations that we have created across our four product lines are delivering more value to our customers. As a result, this quarter, we were able to deliver a dollar-based retention rate of 108%, representing a nine-point increase year-over-year and a five-point uptick from last quarter. Now, we set a goal at the start of the year to exceed 105% dollar-based retention rate by the end of our fiscal year, and I am happy to report that we exceeded that goal two quarters early. We believe the strategy we laid out earlier this year at our investor day is working. First, both disruptors and incumbents alike are continuing to grow their subscription businesses. They are coming to Zuora for our technology, expertise, and ecosystem. Second, our multi-product strategy with Zuora Billing, Zuora Revenue, and Zuora Collect, all built on the Zuora Central Platform, continues to enable a lean] and expand motion executed, but what I believe is a truly unique go-to-market organization that emphasizes long-term strategic relationships with the best companies in the world. In short, I am happy with our overall momentum as we continue to execute against the fiscal goals that we announced at the beginning of the year. Let me dive into the highlights from the quarter. Market trends we identified at the start of the year are continuing to play out. Companies are increasingly waking up to the power of the subscription model, and we're seeing both fast-growing disruptors and large enterprise incumbents investing in recurring revenue business models. In both cases, these companies are looking for guidance on how to navigate their subscription journey ahead, and they're turning to Zuora. Let's take a disruptor. At our Analyst Day earlier this year, we shared the story of Zoom, of how we powered their torrid growth over the last 18 months. Well, this quarter, a large enterprise marketing SaaS leader reported over 200% increase in annual recurring revenue from just two years ago, and now they are invoicing more than $1 billion in revenue across 125,000 subscribers, all through Zuora Billing. We've been working with them since before they went public, and it's our system that's enabled them to launch new offerings, evolve to a multi-product company, and implement the more complex monetization models that come with that level of sophistication. On the other side, let's look at an incumbent who's pivoting to the subscription economy. This quarter, we signed a 100-year-old robotics company with over $20 billion in revenue, who is rolling out a subscription-based marketplace to turn their IoT investments into new revenue streams. Now, realizing their existing systems were not built for this new model, they chose Zuora to help them execute the strategy across the 100+ countries that they operate in. We're also seeing companies come to Zuora after initially selecting other solutions that simply could not deliver. This quarter, we brought on a disruptor in the IT security space who originally signed with a competitive solution from a CRM vendor. They found themselves stuck in a never-ending implementation cycle, and so they switched to Zuora. With our platform, they will be able to manage the entire subscription monetization process, and they have the agility they need to roll out new products and pricing offers, and to easily sign up new customers across multiple acquisition channels. These are just a few examples, but we believe the fast-scaling disruptors and enterprise incumbents make up the sweet spot of the subscription economy, and our strategy to focus here is driving the business results that we delivered in Q2. Turning to product. At the start of the year, we announced a multi-product land and expand strategy designed to give us multiple paths to growth. On the land side, a few years ago, our Zuora Billing solution was our only key beachhead. Now fast-forward to today, we are now seeing multiple Zuora product beachheads, including, of course, Zuora Revenue. For example, in Q2, there's a company that makes smart cutting machines who have seen tremendous growth over the past year. In preparation for their IPO, they turned to Zuora Revenue to automate the complexities of revenue recognition, to help them become compliant with the latest accounting rules, to help ensure that they were set up for additional scale for years to come. In Q2, the number of customers with ACV over $100,000 or more continued to grow, and we closed the quarter at 694 within this cohort, up 17 sequentially. This customer group represents 93% of our business. Simultaneously during the quarter, ACV per customer reached a new quarterly high. On the expand side, we're seeing a record-breaking upsell numbers. For example, iRobot initially turned to Zuora Billing back in 2020 to iterate quickly and test different subscription models for a new service, iRobot Select. As these pilots progressed and the subscriber base expanded, the company then invested in Zuora Collect in an effort to reduce involuntary churn from failed credit card payments. As another example, recently a leader in application performance management, a public company, and a longtime Zuora Billing customer, they moved completely to a usage-based model. This added tremendous complexity to their revenue recognition. In Q2, they've now added Zuora Revenue to create a complete order-to-revenue solution. What's enabling these upsell and cross-sell motions is the tight interlock between our multi-product strategy and our go-to-market approach. In Q2, this approach that we highlighted at Investor Day continued to demonstrate tremendous progress. In addition to lowering churn, expanding sales, and allowing us to hit our full-year dollar-based retention rates two quarters early, our field organization continues to successfully take these customers live. During the quarter, we saw our second highest quarterly ACV go lives, including with HERE Technologies, Monster Worldwide, and Xerox. As we said, our go-to-market strategy is also about driving scale in our own operations and accelerating growth by cultivating a network of global system integrators. This strategy continued to show traction and deliver results in Q2. First, our SI partners are contributing to our growth. In Q2, over three quarters of our new business logos were influenced by an SI partner. These deals are also coming in with a higher average selling price, as we saw new customers like Daihatsu, Thales, and Rev.com select Zuora, thanks to the successful collaboration with our partners. Second, our SI partners are scaling our ability to take our customers live. This quarter, over 40% of customer go-lives actually involved a system integrator partner. Third and finally, we're seeing our partners increase the investment they are making in Zuora. In Q2, we saw high double-digit growth of the number of certified consultants on a quarter-over-quarter basis, demonstrating that our partners are investing in increasing their commitment to Zuora, which sets us up for future growth. In closing, the strategy that we laid out at the start of the year continues to deliver according to our expectations. This is the story of Q2. We're seeing both fast-scaling disruptors and enterprise incumbents turn to us. Our multi-product and land expand strategy helped us reach our full-year target for dollar-based retention rates two quarters ahead of plan. Investments we made in our go-to-market are helping us successfully take our customers live and to align with our SI partners in order to accelerate growth and scale our deployment capabilities. Finally, we're seeing that in addition to our technology, our unique expertise in the market is why companies continue to turn to us to help guide them on their journey to succeed in the subscription economy. With that, I'll turn the call over to Todd to review our financial performance. Thank you, Tien, and thanks, everyone, for joining us today. I'll be providing an overview of our Q2 results and discussing our financial outlook for the third quarter and full year. As a reminder, today's discussion includes non-GAAP financial measures. Beginning this quarter, we updated our method for calculating certain non-GAAP financial measures related to internal-use software. You can find the details in today's press release, which includes a reconciliation table of selected GAAP to non-GAAP measures that reflect the adjustments made to both our current and prior year financial results. Our performance in Q2 was strong across our key financial metrics. We exceeded expectations in subscription revenue, total revenue, non-GAAP operating loss, and free cash flow. Q2 was highlighted by multi-product deals with both disruptors and incumbents, strong go-to-market execution, and great contribution from our SI partners. We have built a strong foundation for long-term growth. Q2 brought incremental progress towards our goals. Looking ahead, we'll continue to focus on ARR growth, dollar-based retention, and free cash flow. Let me take you through some of the key metrics this quarter. In Q2, our dollar-based retention rate was 108%, a significant improvement from 99% in the prior year, as we lapped the higher churn levels that we experienced in Q2 of last year, along with our focus on retention and upsells. Looking at our customers at or over $100,000 in ACV, we ended with 694 customers. This group of customers represents 93% of our business. We closed two deals with ACV of $500,000 and above, the same number as a year ago. As Tien noted, during Q2, we reached a new quarterly record for ACV per customer. Turning to transaction volume. Our systems processed $18 billion of volume in the quarter, representing 42% growth year-over-year. While processed transaction volume is helpful in understanding how much of our customers' business is running on our platform, it does not track linearly with quarterly revenue as customer gains efficiencies as they scale. Let me review our Q2 financial results. Subscription revenue grew 23% year-over-year to $71.5 million and represented 83% of total revenue. Note, Q2 subscription revenue included some one-time non-recurring benefits totaling $1.1 million, which were not reflected in our prior Q2 guidance. This was primarily related to revenue we recognized upfront, which was not anticipated in the quarter. Professional services revenue decreased 10% year-over-year to $15 million. As Tien mentioned, we continue to make progress on our strategy to shift more services to our system integrator partners, and we view this continued decline in service revenue as a positive trend. Total revenue closed at $86.5 million in Q2 and grew 15% year-over-year. As previously mentioned, our overall revenue growth was impacted by our strategy to reduce the mix of our direct professional services towards our SI partners. This not only enhances our go-to-market opportunity but also benefits our overall gross margin. As a result of our success in driving more professional services to our SI partners, non-GAAP blended gross margin was 64%, an improvement of approximately 90 basis points over the prior year. Non-GAAP subscription gross margin was 79%, the same as Q2 in the prior year. During Q2, we made the decision to accelerate the move out of our data center to a cloud-hosted service, which will enable us to operate more efficiently and offer us additional capacity as we scale over the long term. In the short term, we'll incur additional hosting expenses to make this transition. During the second quarter, we recognized $0.6 million of additional expense and expect to incur $2.8 million expense in our cost of goods sold during the second half of this fiscal year. Non-GAAP services gross margin was - 7%, driven by investments in training our partners and one-time employee-related benefits. Our goal is to continue to run services at or near breakeven for the near future as we further engage with our SI partners. Non-GAAP operating loss was $3.9 million in the quarter, compared to $0.6 million in the prior year, adjusted for the non-GAAP accounting changes mentioned earlier. This was driven by additional investments in sales, marketing, and R&D. This resulted in non-GAAP operating margin of - 4.6%, a decrease from breakeven in Q2 of last year. As I shared with you on our last earnings call, operating margins will be roughly flat this fiscal year as we absorb expenses which weren't included in last year and accelerate investments. Looking at ARR and free cash flow. Earlier this year, we introduced some new KPIs to help investors track our progress, including ARR growth. I'm happy to report that in Q2, ARR grew 18% year-over-year. This was ahead of our target of 17% ARR growth for the fiscal year. This was driven by strong upsell performance as well as new business. We continue to focus on our objective to reach midterm ARR growth of 25%-30%. Free cash flow was - $4.4 million, driven by the seasonality of our business and the timing of our employee stock purchase plan. Total CapEx for the quarter was $1.7 million. Turning to the balance sheet. We ended the quarter with $201 million in cash and cash equivalents. A $3.5 million increase over the prior quarter. We continue to be prudent with spend and are maintaining a healthy cash position to manage the business. Our fully diluted share count at the end of the quarter was approximately 143.3 million shares using the treasury stock method. In Q2, our execution drove improved performance. We continue to be disciplined in our investments, targeting enterprise customers, focusing on the land and expand motion, and working with SI partners. Let's turn to our financial outlook. As we shared with you on the last call, this is a year we plan to accelerate our investment in go-to-market and product development while absorbing costs that were not in our run rate last year. The updated guidance includes the expenses for the data center migration in the second half that I mentioned earlier. We continue to expect to be free cash flow positive for the full year. For fiscal Q3, we currently expect total revenue of $86 million-$87 million, subscription revenue of $71 million-$72 million, non-GAAP operating loss of - $3.5 million to - $2.5 million, non-GAAP net loss per share of - $0.03 to - $0.02, assuming weighted average shares outstanding of approximately 125.2 million. For the full year, we are raising our revenue outlook. We currently expect total revenue of $340 million-$342 million, subscription revenue of $280 million-$282 million, non-GAAP operating loss of -$13 million to -$11 million, non-GAAP net loss per share of -$0.13 to -$0.11, assuming a weighted average shares outstanding of approximately 124.3 million. In closing, I'm very pleased with our performance in Q2. We've laid a strong foundation to achieve Zuora's long-term objectives and are continuing our cadence of execution. Next, we will take your questions. Operator, please open the call for questions. Thank you, ladies and gentlemen. If you have a question at this time, please press star then the number one key on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. Your first question comes from the line of Brent Thill from Jefferies. Your line is open. Hi, guys. This is Luv Sodha from Jefferies, on for Brent Thill. Congrats on a nice quarter. I had a couple questions. One was, I know, Tien, you mentioned, you spoke a little bit about your win rates improving and that you're winning against some bigger competitors within the space. Could you maybe give us some context as to, as you see the opportunity going forward, is it coming from win rates against competitors improving, or is it more greenfield as we think about it? Well, Luv, it's a great question. I would say when you look at where our business is coming from, it's certainly coming from both areas, right? It's coming from companies that have tried other solutions and it doesn't work, and it's also coming from brand-new situations. Look, I would say this, right? Billing is not, in this new world, a commodity. In this new world, companies are realizing, especially after last year, that their customers really expect something completely different. They expect a service. They expect different ways of paying for the service. They want a very different subscriber experience like the Instacart experience that we're all now used to. You really need a vendor and a provider and a technology solution from a company that's just focused 100% on this space. Companies are realizing that to save money or to buy from a vendor that's not really focused on this area, is not the way that they gain competitive advantage. I don't know, Robbie, what would you say, given what you're seeing? It's a very interesting point. Thank you, Tien. It's just, look, as we're seeing customers also, on the one hand, become more sophisticated, we're seeing that other solutions just do not meet their customers' expectations. I was speaking to the senior management of the company that Tien even referred to, and they're looking at it. They want capabilities out of the box. Right? What they do not want, in their words, they do not want a lifetime of customizations. That is also why we're seeing these companies come to Zuora. Got it. Quick follow-up, if I may, either for Todd or Tien. On the net retention rate improvement, could you give us some context as to how much of it was attributed to churn levels improving versus a year ago, and how much of it was upsell and cross-sells? Thank you. Luv, really balanced. We did a great job. We talked about the fact that we've made significant investments in customer success. Actual churn was down 50% year-over-year, a little more than 50% year-over-year. As a percent of ARR, it's one of the best levels that we've seen again in about 10, 12 quarters. We've done a really nice job on retaining the customers. Again, we had a record quarter on upsells, and that's again continuing to be very balanced. Typically, if you went back 12, 18 months ago, we were much more reliant on volume. Today, you see it much more balanced. New products that were coming out, the multi-product strategy is absolutely resonating with customers. So feel really good about that dollar-based retention being a balanced performance coming from both retention and upsells, and the upsells being across the portfolio. Great. Thank you. I'll pass it through. Thank you. Your next question comes from the line of Joseph Vafi from Canaccord. Your line is open. Hey, guys. Good afternoon. Great to see the continued up-tempo cadence in the business here in the quarter. Congrats on that. Just one more on net retention, which was great this quarter. I know you said you had a record quarter on upsell. Just wondering how that kind of upsell pipeline looks from here, or how we should think about maybe net retention for the rest of the year. I have a quick follow-up. Joe, first of all, I think one of the things we talked about at Analyst Day, that we have an opportunity of about $450 million within our install base. We feel there's still a lot of runway left. Customers have a strong interest in new products that are coming out. We see a lot of usage, as you saw today, on the platform. We feel really good about what the future looks like for upsell. From that standpoint, we feel good. We hit the 105% +. We're in that plus range. I'm going to keep the guidance at that. From that standpoint, we certainly don't see ourselves falling backwards, but I'm going to be prudent and we'll update you next quarter as we progress. Sure. Fair enough. Thanks, Todd. I'd just be curious on, you're signing both, I think, the way you classify them as incumbents and disruptors, and channel that's coming from them relative to your SI. Are the SIs bringing you, I would imagine, more of the incumbents as they're moving with their digital transformations, or are they also bringing you some of the newer disruptors that are actually perhaps becoming SI customers themselves? Thanks a lot, guys. Yeah. I would truly say that it's both, especially when you look at some of the disruptors. They're really fast-growing. You guys track this as well. There's a ton of companies that are coming up, ready and primed for the public markets. When you reach that $50 million, $100 million, $200 million inflection point as a fast-growing disruptor, you know you need help, right? You've got billing challenges, you've got compliance challenges, you've got ASC 606 challenges. A lot of them are reaching out to the PwC, the EY, the Deloitte of the world. That's where we really do intersect with them. Robbie, any color that you want to add? Yeah, I think, as you say, there is a balance there, right? That we're finding from our size, it's both sort of source pipeline and influence pipeline. You know they're seeing so much digital transformation in the space. There's an awful lot where they're helping that digital transformation, and at the same time, as people go more towards public offerings or whatever else, they're having a lot of help from those SIs, too. We're seeing it very much both in the disruptors and in the incumbents. Thanks very much, guys. Thank you. Your next question comes from the line of Andrew DeGasperi from Berenberg. Your line is open. Thanks for taking my question. At first, it was interesting to find two manufacturers among the new customer logos you acquired. I was just wondering if maybe you could elaborate, like the sales motion with those type of customers, and maybe elaborate as well as what kind of products were they taking, and did they take any beyond billing? Was there some of the other strategic products that you have as well? Yeah. You probably know from past conversations, Andrew, that I'm very bullish on the manufacturing sector. If you pull back and look at 50, 60, 70 years, people have a sense the manufacturing sector is starting to decline. We're really seeing a major reversal of that, and it's all because of IoT. When every single physical product is connected to the internet, the same revolution that you found in the software sector, right? Where software became Software as a Service, the same revolution you found in, say, entertainment and media, it's happening in the physical products world. The manufacturing companies we work with, the common thread is they spent the last four, five, six years investing in an IoT infrastructure, connecting all their products to the internet, and now their imagination is just bursting with new revenue streams that they could get. Some of these could be initial launches, even. We're able to help them launch a brand new internet IoT-driven service in 90 days or less and grow from there. That's really one of the stories. The story of Caterpillar comes to mind in the work that we've done. Some of them are actually they've had a service out there for some time. It's going really, really well. Last year, they're seeing that these are the parts of their business, their revenue streams that are growing the fastest, and they're doubling down in those areas. A company like Philips, for example, will come to mind as an example there. That's helpful. On your certified partner count, the growth looks pretty impressive. I was just wondering, should we use that as a metric or as a derivative of your growth in your strategic partnerships? No, I don't think I would do that. Okay. Thank you. Thanks, Andrew. Thank you. Your last question comes from the line of Scott Berg from Needham. Your line is open, sir. Hi, everyone. Congrats on the nice numbers, and thanks for taking my questions. I guess this question's probably for Tien or Robbie. A lot of questions on upsell and churn, but how about the net new customer sales in the quarter in the pipeline? As you look at those deals and the three beachheads, Tien, that you mentioned that you can land with today, are those deals still highly skewed towards the billing side of the equation, which I think we probably all suspect, or are you seeing nice traction with initial lands on the other two modules as well? Yeah. What I tried to highlight on the call is we're definitely seeing new lands with the other modules, and the Zuora Revenue was one of the examples that we gave. I mean, overall, we're pretty happy with the new land motion. We're pretty happy with the new business. If you look at it, the number of customers continues to tick up quarter over quarter. At the same time, ACV per customer on the deal, the deal sizes are getting bigger as well, which is a really positive sign. That part of the business continues to work well, and we're really happy with just with the blended aspect of the business. At the end of the day, these aren't two businesses. These are new customers coming in. We want to make sure that we continue to do that and continue to have a fantastic path for growing our value and footprint within those accounts and translating that into additional revenue. Got it. Helpful. From a follow-up perspective, Todd, you've certainly highlighted the mix of services moving to partners the last two quarters, and I think we understand that general progression there. Where should services fall out, either as a percentage of revenue or on maybe an ASPU basis here once that move is done? I assume we'd probably work our way a little bit higher from there, just in relation to the national growth of the company. I think when we talked at Analyst Day, we said we thought it'd be around 15%. It may bounce a couple of points one way or another. We'll make sure we do the right things for our customers. I think the SI partners that we see coming in, they're training up lots of people. They're a great channel for us, and we're more than happy for them to take on that business. Great. That's all I have. Congrats on the good quarter again. Hey, thanks again, Scott. Thanks, Scott. Thank you. I'm showing no further question at this time. I would like to turn the conference back to our CEO, Mr. Tien Tzuo, for any additional remarks, sir. Great. Thank you. Before I close it out, I just wanted to thank all our ZEOs. Their innovations, their contribution, and their continued execution, these are what really makes us who we are. Our people are what makes Zuora an incredible place, and I'm incredibly proud of what we accomplished together in Q2. It is clear from our dollar-based retention performance that our land and expand enterprise strategy is working. Our products are resonating with our customers. Our ARR growth remains strong. The subscription economy continues to have a lot of room for upside. We feel well-positioned and positive about the future based on our overall momentum this quarter. We feel good about where we are. Thank you for joining us today. Thank you, presenters. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may all disconnect.