-Zscaler ZS shares gained 8.3% during Tuesday’s extended trading session after the cloud-based security solutions reported better-than-expected fiscal third-quarter results and raised outlook for fiscal 2021.
-Zscaler’s fiscal third-quarter adjusted earnings jumped more than two-fold to 15 cents per share from the 7 cents reported in the year-ago period. Moreover, quarterly earnings beat the Zacks Consensus Estimate of 7 cents per share.
-Revenues of $176.4 million jumped 60% year over year on rise in adoption of the company’s cloud platform security solutions by global enterprises. The figure surpassed the consensus mark of $164.4 million.
-Americas accounted for 51% of revenues, while the EMEA contributed 38%. The remaining 11% came in from the Asia Pacific and Japan.
-Calculated billings surged 71% year over year to $225 million during the reported quarter.
-Zscaler’s quarterly results benefited from continued solid demand for its products, given the healthy environment of the global security market.
-Zscaler continued to win customers and its net dollar retention rate was outstanding at 126% compared with the previous quarter’s 127% and the year-ago quarter’s 119%.
-Zscaler continued to win customers and its net dollar retention rate was outstanding at 126% compared with the previous quarter’s 127% and the year-ago quarter’s 119%.
-In the reported quarter, non-GAAP gross margin expanded 100 basis points (bps) year over year to 81%. Sequentially, non-GAAP gross margin remained flat. The company noted that gross margin remained under pressure during the second half of fiscal 2021 due to the increased use of public cloud to meet the ten time surge in ZPA traffic as pandemic lockdowns began.
-Non-GAAP research & development (R&D), sales & marketing (S&M) and general & administrative (G&A) expenses flared up 55%, 56% and 33% to $25.9 million, $80.9 million and $12.9 million, respectively.
-Total non-GAAP operating expenses shot up 53% to $119.7 million year over year. However, as a percentage of revenues, operating expenses shrunk 300 bps to 68% mainly due to lower T&E, partially offset by increased hiring and M&A expenses.
-As a result of higher gross margin and lower operating expenses as a percentage of sales, non-GAAP operating margin improved 400 bps to 13%. Non-GAAP operating income was $22.9 million in the fiscal third quarter compared with the year-ago quarter’s $9.7 million.
-Zscaler’s fiscal third-quarter adjusted earnings jumped more than two-fold to 15 cents per share from the 7 cents reported in the year-ago period. Moreover, quarterly earnings beat the Zacks Consensus Estimate of 7 cents per share.
-Revenues of $176.4 million jumped 60% year over year on rise in adoption of the company’s cloud platform security solutions by global enterprises. The figure surpassed the consensus mark of $164.4 million.
-Americas accounted for 51% of revenues, while the EMEA contributed 38%. The remaining 11% came in from the Asia Pacific and Japan.
-Calculated billings surged 71% year over year to $225 million during the reported quarter.
-Zscaler’s quarterly results benefited from continued solid demand for its products, given the healthy environment of the global security market.
-Zscaler continued to win customers and its net dollar retention rate was outstanding at 126% compared with the previous quarter’s 127% and the year-ago quarter’s 119%.
-Zscaler continued to win customers and its net dollar retention rate was outstanding at 126% compared with the previous quarter’s 127% and the year-ago quarter’s 119%.
-In the reported quarter, non-GAAP gross margin expanded 100 basis points (bps) year over year to 81%. Sequentially, non-GAAP gross margin remained flat. The company noted that gross margin remained under pressure during the second half of fiscal 2021 due to the increased use of public cloud to meet the ten time surge in ZPA traffic as pandemic lockdowns began.
-Non-GAAP research & development (R&D), sales & marketing (S&M) and general & administrative (G&A) expenses flared up 55%, 56% and 33% to $25.9 million, $80.9 million and $12.9 million, respectively.
-Total non-GAAP operating expenses shot up 53% to $119.7 million year over year. However, as a percentage of revenues, operating expenses shrunk 300 bps to 68% mainly due to lower T&E, partially offset by increased hiring and M&A expenses.
-As a result of higher gross margin and lower operating expenses as a percentage of sales, non-GAAP operating margin improved 400 bps to 13%. Non-GAAP operating income was $22.9 million in the fiscal third quarter compared with the year-ago quarter’s $9.7 million.