Zscaler Inc Reports Strong Fiscal Fourth Quarter and Year 2024 Financial Results
Intellectia.AI Updated: 2024-09-03
Zscaler, Inc. Reports Strong Fiscal Fourth Quarter and Year 2024 Financial Results
SAN JOSE, Calif., Sep 3, 2024 - Zscaler, Inc. (NASDAQ: ZS), a leader in cloud security, announced its financial results for the fiscal fourth quarter and full year ended July 31, 2024.
Key Financial Metrics
Consolidated Statements
| Metric | Q4 FY2023 | Q4 FY2024 | YoY Growth | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $456.1 million | $592.9 million | +30% | $567.93 million |
| GAAP Net Loss | $30.7 million | $14.9 million | -51% | N/A |
| Non-GAAP Net Income | $100.9 million | $140.6 million | +39% | N/A |
| GAAP EPS (diluted) | $0.21 | $0.10 | N/A | N/A |
| Non-GAAP EPS (diluted) | $0.64 | $0.88 | +38% | $0.69 |
Overall, Zscaler reported robust growth during the fourth quarter, exceeding revenue and non-GAAP EPS consensus estimates. The significant reduction in GAAP net loss also demonstrates improved operational efficiency and cost management.
Segment Performance
Revenue Breakdown by Segment
| Segment | Q4 FY2023 Guidance | Q4 FY2024 | Segment Performance |
|---|---|---|---|
| Total Revenue | $592.9 million | $592.9 million | Met |
| Calculated Billings | $910.8 million | $910.8 million | Met |
Zscaler met its revenue guidance across all segments, indicating strong execution in driving sales and service delivery.
Key Developments and Operational Highlights
- Surpassed half a trillion daily transactions.
- Published the Zscaler ThreatLabz 2024 Ransomware Report.
- Collaborated with Google Chrome Enterprise for enhanced ZPA™ zero trust secure access.
- Launched multiple AI Data Protection innovations.
- Introduced AI/ML-powered URL categorization solutions.
- Announced James Beer’s appointment to the Board of Directors.
- Collaboration with NVIDIA on AI-powered security services.
Officer Comments
Jay Chaudhry, Chairman and CEO, stated, "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 we have achieved a major milestone with our cloud platform surpassing over half a trillion transactions daily. With a strong go-to-market machine and a high pace of innovation, I am excited about the year ahead as we enter Fiscal 2025."
Dividends and Share Repurchase Program
No dividends or share repurchase program were announced in the earnings release.
Forward Guidance
For Q1 FY2025: - Revenue: $604 million to $606 million - Non-GAAP Net Income per Share: $0.62 to $0.63
For Full Year FY2025: - Revenue: $2.60 billion to $2.62 billion - Non-GAAP Net Income per Share: $2.81 to $2.87
Stock Price Movement
Following the earnings release, Zscaler’s stock price experienced a decline of approximately -6.76%.
In summary, Zscaler reported robust growth in both revenue and net income, significantly reducing its losses and surpassing consensus estimates. The company's forward guidance indicates continued confidence in its growth trajectory.
