SA article on ZS

Great free article on ZS from Bert, reaffirming much of what has already been discussed on this board.…


I thought one of the keys was the following:

The growth of billings at 32% for the quarter had been forecast by the company and related to the bookings in Q4-2018 which were driven by one time $16.5 million booking from a single Federal order. The particular billing in question was a multi-year arrangement and there was no comparable transaction this year. Excluding that single transaction, the growth in billings was 58%.

Remaining performance obligation as reported grew by 39% to $554 million for the year. Similar to the billings number, the number for RPO was influenced by the one time transaction which added $26 million to the RPO balance in Q4-2018. Excluding that transaction, the RPO growth would have been 49%.




So the share price got penalized for “lumpy” revenue, but they’re better off getting the payment in advance.