-Looked like a very solid Quarter for Zscaler at first glance, Stock up ~2% After Hours. Unfortunately the stock was up 60% YoY last quarter (mostly due to a weak Covid comp in Q3 of 2020)
-Looks like a high 50% grower over the short/medium term.
-Revenue up 57% year-over-year to $197.1 million (up 12% sequentially)
-Calculated billings grows 70% year-over-year to $332.2 million
-Deferred revenue grows 71% year-over-year to $630.6 million
-GAAP net loss of $81.0 million compared to GAAP net loss of $49.5 million on a year-over-year basis
-Non-GAAP net income of $20.3 million compared to non-GAAP net income of $12.0 million on a year-over-year basis (up 69.2%)
-Cash provided by operations was $44.7 million, or 23% of revenue, compared to $31.6 million, or 25% of
revenue, in the fourth quarter of fiscal 2020. FCF was $27.7 million, or 14% of revenue, compared to $10.9 million, or 9% of revenue, in the fourth quarter of fiscal 2020.
-DBNRR was 128% compared to 126% last quarter and 120% a year ago
-GM of 80% (declined by 1% qoq and improved by 1% YoY)
-Strong Customer Growth - 202 customers with ARR greater than $1 million, up 87% from 108 in the
prior year. 1,480 customers with ARR greater than $100,000, vs 973
customers last year. “Our new customer adds accelerated in FY21. We organically added approximately 1,000 new logos in FY21 excluding acquisitions and we ended the year with over 5,600 customers.”
Financial Outlook:
-Total revenue of $210 million to $212 million (represents 47-49% revenue growth)
-Non-GAAP income from operations of $18 million to $19 million
-Non-GAAP net income per share of approximately $0.12, assuming approximately 148 million common shares
outstanding
Some comments that stood out:
“With a record number of 7-figure ACV deals in Q4, we now have over 200 customers with greater than
$1 million in ARR. Over 5,600 enterprises, including 35% of the Fortune 500, trust Zscaler to secure
their transformation journey. While the average Net Promoter Score of SaaS companies is 30, Zscaler’s
is 74, which is 2.5 times higher, proof of the value Zscaler delivers.”
“We are seeing revenue growth across all verticals, customer segments and geographies. 51% of revenue was from outside the United States.”
“I’m very excited to see our ARR approaching $1 billion, and pleased to note that our new annualized
bookings and new logo acquisition accelerated throughout the year.”
“All product pillars of our platform saw strong demand. Notably, ZPA revenue surpassed $100 million in
fiscal 21, growing 166% year over year.”
Full Press Release:
https://ir.zscaler.com/static-files/a2010b38-31e9-47bc-960b-…
Supplemental Info
https://ir.zscaler.com/static-files/f2a263c7-3f2a-4093-abbe-…
Prepared Commentary
https://ir.zscaler.com/static-files/7296878b-e06b-4dcb-917f-…