Zscaler(US:ZS)2025-03-05 21:06Financial Performance - Revenue grew 23% year-over-year to $647.9 million[8] - Calculated billings increased 18% year-over-year to $742.7 million[8] - Deferred revenue rose 25% year-over-year to $1,878.5 million[8] - GAAP net loss was $7.7 million, an improvement from a loss of $28.5 million in the same quarter last year[9] - Non-GAAP net income increased to $127.1 million from $99.4 million year-over-year[9] - Cash provided by operations was $179.4 million, representing 27% of revenue[9] - Free cash flow reached $143.4 million, or 22% of revenue[9] - Revenue for the three months ended January 31, 2025, was $647.9 million, a 23.3% increase from $525.0 million in the same period of 2024[25] - Gross profit for the six months ended January 31, 2025, reached $985.9 million, up 24.3% from $793.1 million in the prior year[25] - Non-GAAP gross profit for the three months ended January 31, 2025, was $520.8 million, reflecting a non-GAAP gross margin of 80%[31] - The net loss for the three months ended January 31, 2025, was $7.7 million, compared to a net loss of $28.5 million in the same period of 2024[25] - Non-GAAP income from operations for the six months ended January 31, 2025, was $274.6 million, with a non-GAAP operating margin of 22%[31] - Non-GAAP net income for the six months ended January 31, 2025, was $251.3 million, up 35.2% from $185.8 million in the same period of 2024[36] - Non-GAAP net income per share, diluted, for the three months ended January 31, 2025, was $0.78, compared to $0.63 for the same period in 2024, reflecting a 23.8% increase[36] Cash Flow and Assets - Cash and cash equivalents increased to $1.76 billion as of January 31, 2025, from $1.42 billion at the end of July 2024[27] - Total assets grew to $5.01 billion as of January 31, 2025, compared to $4.70 billion as of July 31, 2024[27] - Net cash provided by operating activities for the six months ended January 31, 2025, was $510.8 million, compared to $402.9 million in the same period of 2024[29] - Free cash flow for the six months ended January 31, 2025, was $435.3 million, a 33.7% increase from $325.5 million in the same period of 2024[36] - Free cash flow margin for the three months ended January 31, 2025, was 22%, compared to 19% for the same period in 2024[36] Operating Expenses and Tax - Operating expenses for the three months ended January 31, 2025, totaled $539.5 million, a 19.0% increase from $453.3 million in the same period of 2024[25] - The company recognized a tax benefit of $17.2 million due to the release of a valuation allowance on U.K. deferred tax assets during the three months ended January 31, 2025[25] - The company reported a non-GAAP effective tax rate of 23% for both the three and six months ended January 31, 2025[36] - The company plans to continue assessing its non-GAAP tax rate regularly, which is currently set at 23%[40] Future Guidance - Guidance for Q3 fiscal 2025 expects revenue of $665 million to $667 million[14] - Full year fiscal 2025 revenue guidance is approximately $2.640 billion to $2.654 billion[14] Product Development - Introduced the industry's first Zero Trust Segmentation solution for branches and cloud environments[9] Deferred Revenue - Total deferred revenue at the end of the period was $1.88 billion, up from $1.50 billion at the end of the same period in 2024[36] Stock-Based Compensation - Stock-based compensation expense for the three months ended January 31, 2025, was $176.4 million, compared to $145.5 million for the same period in 2024[36]