By  on April 12, 2018

Zuora Inc., a cloud-based subscription management software firm, raised $154 million as the company completed its initial public offering on Thursday.Eleven million shares were priced at $14 a share Wednesday night and closed at $20 at the end of Thursday’s trading session — its first day of trading — on the New York Stock Exchange. The first day had a range of as high as $21.85 and a low of $19.12, with 13.1 million shares changing hands. Shares trade under the symbol “ZUO.” In after-market trading, the shares gained 2.2 percent to $20.44.The software company allows firms to shift gears and become subscription businesses.Tien Tzuo is the company’s chief executive officer, whose previous stint was as chief strategy officer at Salesforce.com. Before that he had worked at Oracle.Georg Richter, ceo and founder of OceanX, a subscription commerce platform that combines e-commerce, fulfillment, customer care and business intelligence for brands in the subscription space, said, “Being a public company will create different challenges for Tien and his team. There will be pressure to focus on profit versus concentrating on growth alone. As the pioneers in a relatively new industry trend, there will be some challenges in continuing to be the advocate for the subscription economy while educating Wall Street on the key metrics of their business.…We’re watching Zuora with admiration — their work was groundbreaking and helped many of us in the subscription business indirectly.”Separately, Richter — citing a recent McKinsey & Co. report — said the subscription e-commerce market has grown by more than 100 percent a year over the past five years, with the larger retailers generating more than $2.6 billion in sales in 2016. That is up from $57 million in 2011.   

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