Form 4: Zuora CEO Tien Tzuo Executes Stock Option and Sells Shares Under 10b5-1 Plan

Zuora's Chairman and CEO, Tien Tzuo, exercised stock options and sold shares of Class A Common Stock under a pre-arranged 10b5-1 trading plan.

Summary

• Tien Tzuo, Chairman and CEO of Zuora, Inc., executed a transaction involving the company's stock on July 16, 2024.
• Tzuo exercised a stock option to acquire 13,353 shares of Class B Common Stock at a price of $3.04 per share.
• Concurrently, Tzuo sold 13,353 shares of Class A Common Stock at a weighted average price of $9.1187 per share, with prices ranging from $9.09 to $9.18.
• These transactions were conducted under a 10b5-1 trading plan adopted on June 22, 2023.
• Following these transactions, Tzuo directly owns 6,352 shares of Class A Common Stock and 718,985 shares of Class B Common Stock.
• Tzuo also indirectly owns 7,371,703 shares of Class B Common Stock through the 70 Thirty Trust and 640,542 shares through The Next Left Trust, for which he serves as trustee.

Sentiment

Score: 6

Explanation: Neutral sentiment as the transactions are part of a pre-planned trading strategy. The CEO is exercising options and selling shares, which is a common practice.

Positives

• The use of a 10b5-1 trading plan suggests that the transactions were pre-planned and not based on insider information.

Risks

• The sale of shares by the CEO could be perceived negatively by investors, although it is part of a pre-arranged plan.
• The CEO's intention to use the proceeds to fund future option exercises could indicate a belief that the stock price will increase, but it also depends on market conditions.

Future Outlook

The Reporting Person intends to use a majority of the net proceeds from the sale of these shares of Zuora Class A Common Stock to fund future exercise(s), via exercise-and-hold transaction(s), of his outstanding stock option that expires on November 18, 2024 to acquire Zuora Class B Common Stock.

Industry Context

Executive stock transactions are common and closely monitored by investors. The use of a 10b5-1 plan provides transparency and reduces concerns about insider trading.

Stakeholder Impact

• The transactions could have a minor impact on shareholders depending on their perception of the CEO's actions.

Key Dates