Zscaler (ZS) reported Q4 earnings today (reference: https://ir.zscaler.com/news-releases/news-release-details/zs…).
Here are some data points.
Q4 actuals:
Revenue 197M (up 11.7% from Q3, up 57% from last Q4)
Gross profit 151M (similar growth rates)
Gross margin 77%
Beat the mid-point of their revenue guidance by 6% (a little down from prior beats)
Full year:
Full year revenue came in at 673M which was 2% over their latest full year forecast from last quarter.
Guidance is as follows:
Q1 midpoint 211
Full year midpoint 945
If you assume Q1 will come in at the midpoint of guidance plus their average beat of last 4 quarters (7.3%) it would be 14% quarterly growth, and represent acceleration from this quarters 11.7% increase.
Share count change:
ZS seems to increase share count by 5% y/o/y like clockwork. No surprises
Valuation:
At recent price of 280:
P/S current annualized Q: 49
P/GP current annualized Q: 64
P/S trailing: 57
P/S midpoint of new full-year guidance: 41
After hours action:
Stock slightly up around 285
It seems like a strong quarter and good forecast ripe for raise-and-beat but I still need to listen to the earnings call before finalizing my thoughts.
Thanks,
Rob