Zscaler Zero Trust Exchange Platform is the worlds largest cloud security platform and is unique in that it primarily protects cloud workloads by controlling access. ( whereas some other platforms primarily protect these same workloads by detecting and then responding to threats.)
It makes sense that they have achieved FedRAMP’s High Authorization.
“Zscaler’s mission is to empower organizations to realize the full potential of the cloud and mobility by securely connecting users to applications from any device, anywhere.”
Zscaler is a Leader and positioned highest in “Ability to Execute” in the first Gartner Magic Quadrant for Security Service Edge. Palo Alto networks is a ‘Challenger’ in this quadrant category.
Today, Zscaler announced that they have achievedCarbon Neutral with Goal for Net Zero by 2025:
Zscaler Achieves Carbon Neutral Status and Establishes New Goal to Reach Net Zero by 2025
Sep 08, 2022
So let’s look at the data from this evenings Q4’22 earnings report.
Zscaler Reports Fourth Quarter and Fiscal 2022 Financial Results
Sep 08, 2022
Fourth Quarter Highlights
Revenue grows 61% year-over-year to $318.1 million
- Calculated billings grows 57% year-over-year to $520.4 million
- Deferred revenue grows 62% year-over-year to $1,021.1 million
The above Revenue of $318.06M beats consensus.
“We delivered outstanding results for the fourth quarter with 61% revenue growth and 57% billings growth year over year, while driving operational efficiency across the company and delivering on Rule of 80 for the quarter and for the full year,”
said Jay Chaudhry, Chairman and CEO of Zscaler.
"Our customers are realizing immense value from the new, innovative services and advanced capabilities being integrated into our Zero Trust security platform. Despite the uncertain macroeconomic landscape which continues to evolve, we continue to see favorable demand for our Zero Trust Exchange platform because it makes businesses more secure, simplifies IT, and reduces cost.”
Revenue grew 63% last Q3’22 quarter and 61% this Q4’22.
Calculated billings grew 54% YoY last Q3’22 quarter and have grown 57% this Q4’22.
Deferred revenue growth:
This Q4’22 Deferred revs come in at $1,021.1M, an increase of 62% YoY
Q3’22 Deferred revenue was $818.7M , an increase of 65% YoY.
Q4’22 Deferred revenue was $759.9M , an increase of 70% YoY.
GAAP net loss of $97.7 million compared to GAAP net loss of $81.0 million on a year-over-year basis
- Non-GAAP net income of $36.4 million compared to non-GAAP net income of $20.3 million on a year-over-year basis
Cash flow: Cash provided by operations was $103.1 million, or 32% of revenue, compared to $44.7 million, or 23% of revenue, in the fourth quarter of fiscal 2021. Free cash flow was $74.8 million, or 24% of revenue, compared to $27.7 million, or 14% of revenue, in the fourth quarter of fiscal 2021.
Net income (loss) per share: GAAP net loss per share was $0.69, compared to $0.59 in the fourth quarter of fiscal 2021. Non-GAAP net income per share was $0.25, compared to $0.14 in the fourth quarter of fiscal 2021.
*** This Non-GAAP EPS of $0.25 beats consensus.
Full Year Fiscal 2022 Financial Highlights
Revenue: $1,090.9 million, an increase of 62% year-over-year.
- Net income (loss): GAAP net loss was $390.3 million, compared to $262.0 million in fiscal 2021. Non-GAAP net income was $101.3 million, compared to $75.7 million in fiscal 2021.
Supplemental Financial Information
Recent Business Highlights
- Announced our Posture Control™ solution…
- Released innovations, including CNAPP and Zero Trust for Workloads…
- Launched advanced AI/ML innovations…
- Announced that Zscaler and Siemens are delivering an all-in-one solution…
These are the type of innovations and product improvement that i wanted along with FedRamp.
They beat and raised guidance Again:
For Q1’23 they raised guidance for total revenue of ~$340M from previous guidance of total revenue ~$305M
For Q1’23 they raised Non-GAAP income from operations of ~$37.5M from previous guidance of $33.5M.
For Q1’23 they raised guidance for Non-GAAP net income per share of ~$0.26, assuming ~155M common shares outstanding from previous guidance ~$0.20 per share assuming ~ 146.5M common shares outstanding.
For the full year fiscal 2023, we expect:
- Total revenue of ~$1.49B
- Calculated billings of $1.92B
- Non-GAAP income from operations of $173M
- Non-GAAP net income per share ~ $1.17 at mid-point
Here is a link to the Corporate IR Presentation
With an informative timeline from their Founding in 2007, their IPO in 2018 to present.
Zscaler is Driving transition from ‘legacy on premises’ to cloud / mobile standard
Includes Zscaler Zero Trust platform offerings
Along with competition and the Ecosystem of best-of-breed platforms
Tailwinds driving the company forward and competitive advantages
In the conference call they are announcing some new contracts from large Fed customer…
sounding positive and excited about the future even with headwinds from macro conditions.
Nice report with
- growing innovations and platform development
- beat expectations
- raised guidance
- growing global team and expanding globally
- high customer retention from sticky platform
All the things i want to see for global growing security needs and FedRAMP.
Fool ommmmm , kevin c
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