Financial Data and Key Metrics - Revenue grew 26% YoY to $628 million, with Americas contributing 54%, EMEA 30%, and APJ 16% [33] - Calculated billings grew 13% YoY to $517 million, with unscheduled billings (new, upsell, and renewal) growing over 20% YoY [33][34] - Operating profit increased 50% YoY, with operating margin reaching a record 21% and free cash flow margin at 46% [9] - Remaining Performance Obligations (RPO) grew 26% YoY to $4.411 billion, with current RPO representing 49% of total RPO [34] - 12-month trailing dollar-based net retention rate was 114%, driven by larger bundles and faster upsells [35] - Gross margin was 80.6%, slightly down from 80.7% in the year-ago quarter [36] - The company ended Q1 with $2.7 billion in cash, cash equivalents, and short-term investments [37] Business Line Performance - Zero Trust Exchange platform and AI solutions drove bookings growth of over 30% [8] - ZPA (Zero Trust Private Access) is a significant growth driver, contributing over 40% of new and upsell business [66] - Emerging products, including ZDX, Zero Trust for Branch and Cloud, and AI analytics, are growing twice as fast as core products [22][79] - Data protection solutions are seeing strong demand, with a Fortune 500 pharma company doubling its annual spend with Zscaler [20] - ZDX Copilot and AI-powered solutions are contributing to large deal wins, such as a healthcare provider doubling its ZIA subscription to 60,000 seats [13] Market Performance - The company secured over 35% of Global 2000 and 45% of Fortune 500 companies [18] - Federal vertical saw a new cabinet-level agency win, now serving 14 of the 15 cabinet-level agencies, including the DoD [26] - International opportunities are expanding, with governments in Australia, the EU, Japan, Singapore, the UK, and the US planning to adopt Zero Trust architecture [27] Strategic Direction and Industry Competition - The company is leveraging AI to enhance its Zero Trust platform, focusing on securing AI applications, automating digital experiences, and improving cyber and data protection [10][12][14] - Zscaler is targeting the replacement of legacy firewalls and VPNs with its Zero Trust solutions, particularly in the context of hardware refresh cycles [71][72] - The company is shifting from opportunity-based selling to account-centric selling, resulting in stronger customer engagement and higher-quality pipeline [28][29] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand for AI security offerings and a growing pipeline, with sales capacity strengthening due to lower attrition [52] - The company expects to continue growing the number of $1 million-plus and $5 million-plus customers, driven by a mature pipeline and strong partner engagements [29][30] - Full-year guidance includes revenue growth of 21-22% and billings growth of 19-20%, with free cash flow margin expected to be 23.5-24% [39][40] Other Important Information - The company will attend several upcoming conferences, including the UBS Global Technology and AI Conference and the Barclays Global Technology Conference [5] - CFO Remo Canessa announced his retirement after eight years with the company, during which Zscaler grew from less than $250 million to over $2.5 billion in ARR [42][45] Q&A Session Summary Question: Unscheduled billings growth and future expectations - Unscheduled billings grew 20% YoY, exceeding expectations, and is expected to remain strong in the second half of the fiscal year [51][52] Question: Data security and Microsoft Copilot integration - Zscaler is leveraging its integration with Microsoft to secure Copilot deployments, with a G2000 company signing a seven-figure deal for AI-powered data protection [59][60] Question: ZPA growth and VPN replacement cycle - ZPA is a significant growth driver, with over 40% of new and upsell business coming from ZPA and ZIA combined. The company sees a long runway for VPN replacement and Zero Trust adoption [65][66] Question: Firewall refresh opportunities - Zscaler is targeting customers with firewall refresh cycles, leveraging its Zero Trust SD-WAN and device segmentation solutions to replace traditional firewalls [71][72] Question: Emerging products and their contribution - Emerging products, including ZDX, Zero Trust for Branch and Cloud, and AI analytics, are growing twice as fast as core products and contributing to large deal wins [77][79] Question: Federal market and DoD opportunities - Zscaler continues to gain share in the federal market, with 14 of 15 cabinet-level agencies as customers. The company sees significant upsell opportunities in this vertical [102][103] Question: Data protection solution growth - Data protection solutions are growing faster than the overall business, driven by AI-related security concerns and comprehensive platform capabilities [118][119] Question: GSI-led deals and their impact - Global System Integrators (GSIs) are playing an increasingly important role in driving large deals, particularly in Zero Trust SD-WAN and device segmentation [113][114]

Monday, December 2, 2024Both the S&P 500 and the Nasdaq indexes have closed Monday’s trading session at new market highs. The S&P opened the day slightly up and kept steady: +14 points to 6047. The Nasdaq, which outperformed the other major indexes on the day for its best trading session in nearly as month, grew +185 points to 19,403. The small-cap Russell 2000 also looked ready to set a new all-time closing high, but petered out in the final minutes of the session.The Dow sank early today and could not gai ...

Zscaler (ZS) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this cloud-based information security provider would post earnings of $0.69 per share when it actually produced earnings of $0.88, delivering a surprise of 27.54%.Over the last fou ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Revenue and Financial Performance - Revenue grew 26% year-over-year to $628.0 million[3] - Revenue increased from $496,703 in 2023 to $627,955 in 2024, a 26.4% year-over-year growth[35] - Revenue for the three months ended October 31, 2024, was $627.96 million, up from $496.7 million in the same period in 2023[46] - Zscaler expects Q2 fiscal 2025 revenue of $633 million to $635 million[13] - Full-year fiscal 2025 revenue is expected to be $2.623 billion to $2.643 billion[13] Billings and Deferred Revenue - Calculated billings increased 13% year-over-year to $516.7 million[3] - Calculated billings for the three months ended October 31, 2024, were $516.7 million, compared to $456.6 million in the same period in 2023[46] - Deferred revenue grew 27% year-over-year to $1,783.7 million[3] Profitability and Margins - GAAP net loss was $12.1 million compared to $33.5 million in the same quarter last year[3] - Non-GAAP net income was $124.3 million compared to $86.4 million in the same quarter last year[3] - GAAP gross margin remained stable at 77% in 2024 compared to 78% in 2023[35] - Non-GAAP net income per share, diluted increased from $0.55 in 2023 to $0.77 in 2024[39] Cash Flow and Liquidity - Cash provided by operations was $331.3 million, or 53% of revenue[6] - Net cash provided by operating activities rose from $260,806 in 2023 to $331,335 in 2024, a 27% increase[32] - Free cash flow grew from $224,718 in 2023 to $291,881 in 2024, a 29.9% increase[45] - Free cash flow margin for the three months ended October 31, 2024, was 46%, compared to 45% in the same period in 2023[46] - Net cash provided by operating activities as a percentage of revenue was 53% for both the three months ended October 31, 2024, and 2023[46] - Free cash flow is defined as net cash provided by operating activities less purchases of property, equipment, and other assets and capitalized internal-use software[51] Assets and Liabilities - Total assets increased slightly from $4,704,968 in 2023 to $4,709,002 in 2024[30] - Cash and cash equivalents grew from $1,423,080 in 2023 to $1,553,645 in 2024, a 9.2% increase[30] - Total current liabilities decreased from $3,112,887 in 2023 to $2,963,610 in 2024[30] Investments and Capital Expenditures - Purchases of short-term investments increased from $375,929 in 2023 to $430,296 in 2024[32] - Purchases of property, equipment, and other assets as a percentage of revenue decreased to 3% in the three months ended October 31, 2024, from 6% in the same period in 2023[46] - Capitalized internal-use software as a percentage of revenue increased to 4% in the three months ended October 31, 2024, from 2% in the same period in 2023[46] Non-GAAP Adjustments and Tax Rate - The company uses a long-term projected non-GAAP tax rate of 23% starting August 1, 2024, for determining non-GAAP net income and non-GAAP net income per share[50] - Non-GAAP gross profit excludes stock-based compensation expense, related employer payroll taxes, and amortization expense of acquired intangible assets[51] - Non-GAAP income from operations excludes stock-based compensation expense, related employer payroll taxes, and amortization expense of acquired intangible assets[51] Stock-Based Compensation - Stock-based compensation expense increased from $129,138 in 2023 to $157,178 in 2024[32] Platform and Partnerships - Zscaler's cloud security platform surpassed half a trillion daily transactions[7] - Zscaler announced AI and Zero Trust integrations with CrowdStrike Falcon® platform[8]

First Quarter Highlights Revenue grows 26% year-over-year to $628.0 millionCalculated billings grows 13% year-over-year to $516.7 millionDeferred revenue grows 27% year-over-year to $1,783.7 millionGAAP net loss of $12.1 million compared to GAAP net loss of $33.5 million on a year-over-year basis Non-GAAP net income of $124.3 million compared to non-GAAP net income of $86.4 million on a year-over-year basis SAN JOSE, Calif., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Zscaler, Inc. (Nasdaq: ZS), the leader in cloud s ...

Zscaler, Inc. ZS will release earnings results for its first quarter, after the closing bell on Monday, Dec. 2.Analysts expect the San Jose, California-based bank to report quarterly earnings at 63 cents per share, down from 67 cents per share in the year-ago period. Zscaler projects to report revenue of $605.55 million for the recent quarter, compared to $496.7 million a year earlier, according to data from Benzinga Pro.On Sept. 3, Zscaler reported fiscal fourth-quarter revenue of $592.9 million, beating t ...

Zscaler Inc (NASDAQ:ZS) is scheduled to report fiscal first-quarter results after the close on Monday, Dec. 2. According to Zacks, the consensus estimate for the cloud security company's earnings and revenue are 63 cents per share and $605.7 million, respectively. The former represents a 6% year-over-year decrease, and the latter a 21.9% year-over-year increase.At last glance, ZS was 3.2% lower at $203.55. In October, the equity experienced two significant pullbacks, both of which were saved by the 70-day m ...

Zscaler (ZS) is scheduled to report first-quarter fiscal 2025 results on Dec. 2, after market close.For the first quarter, Zscaler projects total revenues to be between $604 million and $606 million. The Zacks Consensus Estimate is pegged at $605.7 million, which indicates growth of 21.9% from the year-ago quarter's level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Zscaler anticipates non-GAAP earnings per share (EPS) to be between 62 cents and 63 cents. The Zacks Consensus Esti ...

Wall Street analysts forecast that Zscaler (ZS) will report quarterly earnings of $0.63 per share in its upcoming release, pointing to a year-over-year decline of 6%. It is anticipated that revenues will amount to $605.68 million, exhibiting an increase of 21.9% compared to the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this tim ...