ZS Earnings Prediction
The chart below shows how ZS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZS sees a -0.18% change in stock price 10 days leading up to the earnings, and a -2.94% change 10 days following the report. On the earnings day itself, the stock moves by +1.38%. This data can give you a slight idea of what to expect for the next quarter's release.
ZS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
592.87M
30.30%
7.17%
Gross Margin
78.04%
0.79%
-0.73%
Operating Margin
-4.55%
-52.16%
742.59%
Net Margin
-2.51%
-62.76%
-172.54%
EPS
-0.10
-52.38%
-183.33%
No Data Available
ZS Earnings Analysis
Zscaler, Inc. Common Stock Corporation (ZS.O) Earnings Conference Call
Positive
Revenue Surge 30%: Revenue grew 30% year-over-year, reaching $593 million in Q4.
Billings Growth Analysis: Billings increased by 27% year-over-year to $911 million, with a sequential growth of 45%.
Revenue Increase Year-Over-Year: For the full year, revenue was $2.17 billion, up 34% year-over-year.
Free Cash Flow Surge: Free cash flow grew by 75% year-over-year, resulting in a free cash flow margin of 27%.
Annual Recurring Revenue Milestone: The company crossed $2.5 billion in ARR in Q4, with expectations to achieve $3 billion or more in fiscal '25.
Negative
Revenue Increase Analysis: Revenue was $593 million, up 30% year-over-year but still below expectations due to ongoing customer scrutiny of large deals.
Operating Expenses Surge: Operating expenses increased 26% year-over-year to $353 million, impacting overall profitability despite revenue growth.
Gross Margin Decline: The total gross margin decreased slightly to 81.1% compared to 81.4% in the prior quarter, indicating potential cost pressures.
Future Customer Retention Challenges: Customer retention rates may decline in the future due to increased competition and pricing pressures in the market.
Cash Tax Payment Impact: The company anticipates a modest cash tax payment of approximately $45 million to $50 million, which could impact net income projections.
ZS FAQs
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ZS Earning Call Sentiment
Zscaler, Inc. (ZS) Q4 2024 Earnings Call Transcript
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ZS.O
-1.15%Positive
Zscaler's earnings call reveals strong financial performance with a 30% revenue increase, robust cash flow, and a growing customer base. The positive guidance for revenue and EPS, coupled with a strong liquidity position, supports a positive sentiment. While there are concerns about economic factors and competitive pricing, management's confidence in platform resilience and growth through acquisitions and AI innovations is reassuring. The Q&A session indicates stable competitive positioning and optimism in sales leadership. Overall, the positive financial metrics and optimistic guidance suggest a likely 2-8% stock price increase over the next two weeks.