$ZS (+1,51 %) | 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