$ZS (-6.84%)

🔹 Adj. EPS: $0.78 (Est. $0.69) 🟢

🔹 Revenue: $647.9M (Est. $634.4M) 🟢; UP +23% YoY

🔹 Calculated Billings: $742.7M; UP +18% YoY

Q3'25 Outlook:

🔹 Adj. EPS: $0.75-$0.76 (Est. $0.74) 🟢

🔹 Revenue: $665M-$667M (Est. $667.25M) 🟡

FY25 Guidance:

🔹 Adj. EPS: $3.04-$3.09 (Est. $2.99) 🟢

🔹 Revenue: $2.64B-$2.65B (Est. $2.69B) 🟡

🔹 Calculated Billings: $3.15B-$3.17B

Q2 Performance:

🔹 Deferred Revenue: $1.88B; UP +25% YoY

🔹 Adj. Operating Income: $140.5M (22% of revenue)

🔹 Adj. Net Income: $127.1M (vs. $99.4M YoY)

🔹 Cash Flow from Operations: $179.4M (27% of revenue)

🔹 Free Cash Flow: $143.4M (22% of revenue)

Strategic & Business Updates:

🔹 Zero Trust Segmentation solution launched to prevent ransomware lateral movement

🔹 Zero Trust Network Access (ZTNA) for SAP introduced to simplify cloud migration

🔹 FedRAMP authorization received for Zero Trust Browser

🔹 Nokia migrating to Zscaler Zero Trust Exchange for enhanced security

🔹 Appointed EVP of AI Innovations, Phil Tee

CEO Jay Chaudhry's Commentary:

🔸 "Strong demand for Zero Trust and AI-driven security fueled our growth. We are leading the shift from legacy security models to a Zero Trust architecture, with new innovations that secure AI applications and drive further expansion."

$ZS (-6.84%) | Zscaler Q1 Earnings Highlights:

🔹 Revenue: $628M (Est. $606M) 🟢; UP +26% YoY

🔹 Adjusted EPS: $0.77 (Est. $0.63) 🟢

🔹 Calculated Billings: $517M (Est. $504M) 🟢; UP +13% YoY

🔹 Deferred Revenue: $1.78B; UP +27% YoY

🔹 Cash Flow from Operations: $331.3M; UP +27% YoY

🔹 Free Cash Flow: $291.9M; UP +30% YoY

Q2 FY25 Guidance:

🔹 Revenue: $633M-$635M (Est. $633M) 🟡

🔹 Adjusted EPS: $0.68-$0.69 (Est. $0.68) 🟡

FY25 Guidance:

🔹 Revenue: $2.623B-$2.643B (Est. $2.613B) 🟢

🔹 Adjusted EPS: $2.94-$2.99 (Est. $2.87) 🟢

🔹 Calculated Billings: $3.124B-$3.149B

Profitability Metrics:

🔹 GAAP Net Loss: $12.1M (Improved from $33.5M YoY)

🔹 Non-GAAP Net Income: $124.3M (UP from $86.4M YoY)

🔹 Non-GAAP Operating Income: $134.1M (21% of revenue; up from 18% YoY)

Balance Sheet Metrics:

🔹 Cash, Cash Equivalents, and Short-Term Investments: $2.71B; UP $298.2M from the prior quarter

Operational Highlights:

🔸 Revenue growth driven by strong sales execution and growing customer engagements.

🔸 Deferred revenue increased by 27% YoY, reflecting higher subscription demand.

🔸 Non-GAAP operating margin improved to 21% from 18% YoY.

🔸 Zscaler’s cloud platform surpassed half a trillion daily transactions, underscoring scalability and trust.

Strategic Updates:

🔸 Appointed Adam Geller as Chief Product Officer to accelerate AI-driven security innovation.

🔸 Announced integrations with CrowdStrike and Okta to enhance Zero Trust and AI-based security solutions.

🔸 Published the Zscaler ThreatLabz 2024 Threat Report, highlighting a 45% YoY increase in IoT malware blocking.

CEO Commentary:

🔸 "Growing customer engagements and strong sales execution drove a solid Q1 with all metrics exceeding our guidance. The combination of Zero Trust and AI is creating exciting new opportunities, which we are well-positioned to capture." – Jay Chaudhry, Chairman and CEO

$ZS (-6.84%) | Zscaler Q4 Earnings Highlights:

🔹 Revenue: $592.9M (Est. $567.46M) 🟢; UP +30% YoY

🔹 EPS: $0.88 (Est. $0.70) 🟢

FY2025 Guidance: 

🔹 Revenue: $2.60B-$2.62B (Est. $2.62B) 🟡

🔹 EPS: $2.81-$2.87 (Est. $3.01) 🔴

🔹 Calculated Billings: $3.11B-$3.14B

Q1 Guidance: 

🔹 Revenue: $604M-$606M (Est. $603M) 🟢

🔹 EPS: $0.62-$0.63 (Est. $0.73) 🔴

Other Key Non-GAAP Metrics: 

🔹 Operating Margin: 22% (Est. 19.3%) 🟢

🔹 Calculated Billings: $910.8M; UP +27% YoY

🔹 Deferred Revenue: $1.90B; UP +32% YoY

🔹 Free Cash Flow: $136.3M; 23% of revenue

🔹 Cash from Operations: $203.6M; 34% of revenue

🔹 Gross Margin: 80.2%

🔹 Cash, Cash Equivalents, and Short-Term Investments: $2.41B

CEO Jay Chaudhry's Commentary: 

🔸 "We ended a successful Fiscal 2024 with Q4 results exceeding the high end of our guidance across all metrics. Customers' adoption of our Zero Trust Exchange platform is stronger than ever, and I’m thrilled to share that we have achieved a major milestone with our cloud platform surpassing over half a trillion transactions daily. I'm excited about the year ahead, as we enter Fiscal 2025 with a strong go-to-market machine and a high pace of innovation."

Recent Business Highlights: 

🔸 Surpassed half a trillion daily transactions, demonstrating leadership in Zero Trust cloud security. 

🔸 Released Zscaler ThreatLabz 2024 Ransomware Report, highlighting an 18% YoY increase in ransomware attacks. 

🔸 Collaborated with Google Chrome Enterprise and NVIDIA to enhance AI-driven security solutions and expand capabilities in private access and data protection.