Zscaler Reports First Quarter Fiscal 2025 Financial Results

Zscaler, Inc., a leader in cloud security, has released its financial results for the first quarter of fiscal year 2025, which ended on October 31, 2024. The company reported significant growth in several key financial metrics, reflecting strong customer engagement and sales execution.

Financial Highlights

For the first quarter of fiscal 2025, Zscaler reported:

• Revenue: $628.0 million, a 26% increase year-over-year.
• GAAP Net Loss: $12.1 million, compared to a GAAP net loss of $33.5 million in the same period last year.
• Non-GAAP Net Income: $124.3 million, up from $86.4 million year-over-year.
• GAAP Net Loss Per Share: $0.08, compared to $0.23 in the first quarter of fiscal 2024.
• Non-GAAP Net Income Per Share: $0.77, compared to $0.55 in the first quarter of fiscal 2024.
• Cash Provided by Operations: $331.3 million, or 53% of revenue, compared to $260.8 million, or 53% of revenue, in the first quarter of fiscal 2024.
• Free Cash Flow: $291.9 million, or 46% of revenue, compared to $224.7 million, or 45% of revenue, in the first quarter of fiscal 2024.
• Deferred Revenue: $1,783.7 million, a 27% increase year-over-year.
• Cash, Cash Equivalents, and Short-term Investments: $2,707.9 million as of October 31, 2024, an increase of $298.2 million from July 31, 2024.

Business and Operational Highlights

Zscaler achieved several notable milestones during the quarter:

• The company's cloud security platform surpassed half a trillion daily transactions, highlighting its scalability and resilience.
• Adam Geller was appointed as Chief Product Officer to drive the next phase of innovation and growth.
• New AI and Zero Trust integrations with the CrowdStrike Falcon® cybersecurity platform were announced to enhance threat detection and response capabilities.
• Four new integrations with Okta were introduced to accelerate Zero Trust transformation for joint customers.
• The Zscaler ThreatLabz 2024 Mobile, IoT, and OT Threat Report was published, revealing a 45% increase in blocked IoT malware transactions.

Management's Perspective

Jay Chaudhry, Chairman and CEO of Zscaler, commented on the results: "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 with our large and expanding platform. With our customer obsession, the world’s largest cybersecurity cloud, and an upleveled go-to-market machine, we are driving strong growth."

Future Outlook

For the second quarter of fiscal 2025, Zscaler expects:

• Revenue of $633 million to $635 million.
• Non-GAAP income from operations of $126 million to $128 million.
• Non-GAAP net income per share of approximately $0.68 to $0.69, assuming approximately 163 million fully diluted shares outstanding and a non-GAAP tax rate of 23%.

For the full year of fiscal 2025, the company projects:

• Revenue of approximately $2.623 billion to $2.643 billion.
• Calculated billings of $3.124 billion to $3.149 billion.
• Non-GAAP income from operations of $549 million to $559 million.
• Non-GAAP net income per share of $2.94 to $2.99, assuming approximately 164 million fully diluted shares outstanding and a non-GAAP tax rate of 23%.

SEC Filing: Zscaler, Inc. [ ZS ] - 8-K - Dec. 02, 2024