First Quarter Fiscal 2019 Financial Highlights
• Revenue: $63.3 million, an increase of 59% year-over-year.
• Income (loss) from operations: GAAP loss from operations was $8.7 million, or 14% of total revenue, compared to $11.3 million in the first quarter of fiscal 2018, or 28% of total revenue. Non-GAAP income from operations was $1.2
million, or 2% of total revenue, compared to loss from operations of $7.4 million in the first quarter of fiscal 2018,or 19% of total revenue.
• Net Income (Loss): GAAP net loss was $7.6 million, compared to $11.4 million in the first quarter of fiscal 2018. Non-GAAP net income was $2.0 million, compared to net loss of $7.5 million in the first quarter of fiscal 2018.
• Net Income (Loss) Per Share: GAAP net loss per share was $0.06, compared to $0.45 in the first quarter of fiscal 2018. Pro forma non-GAAP net income per share was $0.01, compared to net loss per share of $0.07 in the first
quarter of fiscal 2018.
• Cash Flow: Cash provided by operations was $11.0 million, or 17% of revenue, compared to cash used in operations of $4.4 million, or 11% of revenue, in the first quarter of fiscal 2018. Positive free cash flow was $5.2 million,
or 8% of revenue, compared to negative free cash flow of $8.9 million, or 22% of revenue, in the first quarter of fiscal 2018.
• Deferred Revenue: $165.3 million at October 31, 2018, an increase of 68% year-over-year.
Recent Business Highlights
• On November 26, 2018, Zscaler was named a leader in Gartner Secure Web Gateways Magic Quadrant for the 8th
year in a row.
• Zscaler released inline Exact Data Match (EDM) with native SSL inspection as part of its Cloud Data Loss Prevention
(DLP) service providing more precision while reducing the number of false positives. While traditional DLP-EDM solutions were designed for the “castle-and-moat” security model in a few data centers, Zscaler’s DLP-EDM service
can scale to meet the needs of large enterprises with the capacity of one billion data points per customer across 100 data centers globally to protect all users, irrespective of the location.
• Zenith Live Europe, Zscaler’s inaugural European Cloud Summit, took place in London with key industry leaders from global organizations such as Microsoft, Orange Business Services, Boehringer Ingelheim, Carlsberg Group and Thyssenkrupp sharing insights and best practices for secure cloud transformation.