Zscaler(ZS) - 2025 Q1 - Quarterly Results

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$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$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$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]