ZS.O

Zscaler Inc Reports Fiscal Q1 2025 Financial Results

authorIntellectia.AI

2024-12-033mins

Zscaler, Inc. Reports Fiscal Q1 2025 Financial Results

Zscaler, Inc. (NASDAQ: ZS), a leader in cloud security, announced its financial results for the first quarter of fiscal year 2025, which ended on October 31, 2024.

Key Financial Metrics

Metric Q1 FY2025 Q1 FY2024 Year-over-Year Change Consensus
Revenue $628.0 million $499.2 million +26% $605.55 million
GAAP Net Loss $12.1 million $33.5 million N/A N/A
Non-GAAP Net Income $124.3 million $86.4 million N/A N/A
GAAP Loss per Share, Diluted ($0.08) ($0.23) N/A N/A
Non-GAAP EPS, Diluted $0.77 $0.55 N/A $0.63

Zscaler's financial performance in Q1 FY2025 showed robust growth across key metrics with revenue exceeding consensus estimates, showcasing a significant year-over-year increase of 26%. The company's ability to narrow its GAAP net loss and increase non-GAAP income indicates strong operational execution.

Revenue by Segment

Segment Guidance Comparison
Cloud Security Services Exceeded guidance
Security Platform and Products Exceeded guidance

Zscaler's strategic focus on cloud security services and its security platform effectively surpassed previous internal guidance, underscoring the increased adoption of its Zero Trust Exchange architecture.

Key Developments and Operational Highlights

  • Scalability Milestone : Zscaler's cloud security platform processed over half a trillion daily transactions.
  • Leadership Update : Adam Geller was appointed as Chief Product Officer to drive AI-driven security innovation.
  • Partnerships and Integrations :
  • Collaborated with CrowdStrike for enhanced security leveraging AI and Zero Trust.
  • Initiated four new integrations with Okta to enhance security and risk management.
  • Threat Report : Published insights on mobile and IoT/OT cyber threats identifying an increase in IoT malware blocks.

Comments from Company Officers

Jay Chaudhry, Chairman and CEO, emphasized the company's dedication to customer engagements and sales execution that fueled a strong quarter. He highlighted the potential growth opportunities due to the combination of Zero Trust and AI within Zscaler's platform.

Forward Guidance

Zscaler anticipates Q2 FY2025 revenue between $633 million to $635 million, with non-GAAP net income per share projected to be approximately $0.68 to $0.69. For the full fiscal year 2025, revenue is expected to range between $2.623 billion to $2.643 billion.

Overall, Zscaler delivered a strong fiscal Q1 2025 performance with revenue and non-GAAP EPS exceeding expectations, highlighting its solid market position in cloud security and its strategic emphasis on technological innovation and customer-centric strategies.

For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.

Join Intellectia

Share

Want more financial insights delivered directly to your inbox?

Subscribe now and receive handpicked financial news, insights, and trending topics.