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1/5 I recently doubled my position size in Zuora $ZUO. I believe the subscription/sharing economy is for real, and this first-mover will be rewarded as it gains market adoption. 
2/5 The leap from Product-based to Subscription-based requires companies to overhaul existing inventory, billing, & revenue recognition systems. $ZUO's growth will be slower than other SaaS, since it's creating something entirely new rather than just replacing existing solutions.
3/5 But the extra effort is also rewarded with higher switching costs. $SAP made billions by becoming the global ERP platform that could most effectively track orders and transactions. Zuora $ZUO has the same opportunity to become the gold standard in managing subscriptions.
4/5 Subscription businesses are more profitable. Repeat customers don’t require as much sales & marketing as one-time purchasers. Recurring revenue produces greater long-term customer lifetime value.
5/5 Customer satisfaction, retention rates, and lower customer acquisition costs (referrals) will become the metrics to watch for consumer-facing companies. I’ll be watching to see if those companies who are #winning are using Zuora $ZUO behind the scenes to manage everything.
I also wanted to give a shout-out to @RamBhupatiraju, who posted an excellent questionnaire last month that all investors should consider before taking on new positions. I have filled out his questionnaire with my responses for Zuora $ZUO.
