Alright boys and girls hodl on to your roosters cause this one is going to be a doozy.
TL;DR – $ZUO provides the infrastructure for companies to have a subscription based business. I believe that this industry is undervalued and I think it will see massive growth.
Subscription based services are taking over the entertainment, fashion, financial services and tech industry. I know all of this going to sound retarded but these industries have maximized their profits by creating subscription based sales instead of one time sales. A great example of this is Netflix. Everyone has a Netflix subscription nowadays and a large amount of those subscriptions are on autopay so your bank account gets charged and it goes unnoticed by a large amount of users.
[In 2020 Americans have spent in estimated $525 Billion on subscription based services.](https://www.tvtechnology.com/news/us-homes-spent-dollar265b-on-streaming-digital-entertainment-in-2020-per-deg) And this is predicted to grow in the up coming years according to this chart I made:
I know what you’re thinking, this guy’s is retarded. Well maybe. But just ask yourself this: Who is responsible for the billing and collection of money of the users of these services? Well it isn’t the subscription company. Introducing: $ZUO.
$ZUO provides the infrastructure that a company needs to take it’s business to the next level by continuing or switching to a subscription service.
$ZUO provides these main services:
* $ZUO Billing
* Provides billing to customers and takes care of ongoing customer account changes
* $ZUO Revenue
* Automatically recognize revenue for any pricing strategy or billing model. Groups the company’s revenue according to their policies and models.
* $ZUO Collect
* I could type something fancy and smart here but the chart bellow looks better so just take a look at that.
$ZUO plays a huge part in collecting the money from you and me and giving it back to their customer. Some of the customers that $ZUO has partnered with include: HBO, theguardian, GoPro, Zoom & DocuSign just to name a few. You can find the entire list of customers [here.](https://www.zuora.com/our-customers/) All of these companies need $ZUO systems and services to succeed and profit so I think the demand for these services will soar in both the near and distant future.
This type of business has huge upside and I believe that it’s not getting the attention that it deserves. There’s already some mayor investors that are starting to try to get ahead by buying a shit ton of shares like Blackrock, Vanguard Group and Brown Advisory. [Another investor in $ZUO is Justin Zhu who is an avid LSD user](https://news.bloomberglaw.com/esg/lsd-cargo-shorts-and-the-fall-of-a-high-flying-tech-ceo?context=search&index=0). As $ZUO customers see growth, so will $ZUO and I think getting in early on this industry could see any where from 800% to even 1500% growth.
Positions: $ZUO 100 contracts 1/20/22 $20c & 200 shares at $15.79.
I will most likely increase my position in the upcoming weeks, I will post updates in later this year and I’ll remember you guys when I’m in the moon.