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ZS · Zscaler

25 filings

10-Q

ZS 10-Q Quarterly Reports

Zscaler - 25 quarterly reports

Filing record · 2018–202610-K910-Q258-K62

2026-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2026
Zscaler, Inc. reported revenue of $850.5 million for the three months ended April 30, 2026, up from $678.0 million a year earlier, and $2,454.3 million for the nine months, up from $1,953.9 million. Gross margin held at 77% in both periods. The company posted a net loss of $13.9 million for the quarter, compared with a net loss of $4.1 million a year earlier, and a net loss of $59.8 million for the nine months, compared with $23.9 million. Operating expenses rose sharply, led by research and development (up 37% in the quarter) and sales and marketing (up 18%). Non-GAAP income from operations was $195.8 million for the quarter, or 23% of revenue, per the filing's reconciliation. Cash, cash equivalents and short-term investments totaled $3,539.1 million as of April 30, 2026. Net cash provided by operating activities was $850.4 million for the nine months, and free cash flow was $718.4 million. Acquisitions drove a large share of the balance sheet change: goodwill rose to $1,094.4 million from $417.7 million, mainly from the Red Canary, SquareX and SPLX acquisitions. Deferred revenue was $2,477.2 million, and remaining performance obligations totaled $6,459.3 million, with 46% expected to be recognized over the next 12 months. The company's convertible senior notes due 2028, with a principal of $1,725.0 million, are classified as noncurrent. Annualized recurring revenue (ARR) was $3,525 million as of April 30, 2026, compared with $2,817 million a year earlier. On May 19, 2026, the company agreed to acquire Symmetry Systems, Inc. for total consideration of $175.0 million, with closing expected in the fourth quarter of fiscal 2026.
May 26, 2026
2026-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2026
Zscaler, Inc. reported revenue of $815.8 million for the three months ended January 31, 2026, up from $647.9 million a year earlier, and $1,603.9 million for the six months, up from $1,275.9 million. Gross profit was $624.5 million for the quarter, with GAAP gross margin of 77% in both periods. Loss from operations widened to $51.8 million from $40.1 million, and net loss was $34.3 million, or $0.21 per share, compared with a net loss of $7.7 million, or $0.05 per share, in the prior-year quarter. Non-GAAP income from operations was $181.0 million, versus $140.5 million a year earlier, and free cash flow for the six months was $582.4 million, versus $435.3 million. Annual recurring revenue was $3,359 million as of January 31, 2026, compared with $2,683 million a year earlier. The balance sheet shifted materially during the period. Cash, cash equivalents and short-term investments totaled $3,512.8 million, and goodwill rose to $1,001.4 million from $417.7 million following the acquisitions of Red Canary and SPLX. Cash used in investing activities was $1,863.1 million for the six months, driven by $672.8 million of business acquisition payments and $1,401.5 million of short-term investment purchases. Deferred revenue totaled $2,355.4 million, and remaining performance obligations were $6,050.8 million, with 47% expected to be recognized over the next 12 months. The $1,725.0 million of 0.0% convertible senior notes due 2028 remain outstanding, and the company states its existing cash is sufficient to fund operations for at least the next 12 months. A subsequent event disclosed in the filing is the February 5, 2026 acquisition of SquareX Holdings, Inc. for approximately $113.0 million in cash. The filing also notes that the company expects to continue incurring net losses for the foreseeable future as it invests in sales and marketing and research and development, and that there is no pending legal proceeding that it believes is likely to have a material adverse effect.
Feb 26, 2026
2026-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2025
Zscaler, Inc. reported revenue of $788.1 million for the three months ended October 31, 2025, up from $628.0 million a year earlier, with a net loss of $11.6 million compared with $12.1 million in the prior-year quarter. Gross profit was $603.4 million versus $486.5 million, and loss from operations was $36.4 million versus $30.7 million. Operating expenses rose to $639.7 million from $517.2 million, led by sales and marketing and research and development. Stock-based compensation expense was $188.6 million in the quarter, and the company recorded $4.7 million of restructuring charges. Cash flow from operations was $448.3 million, compared with $331.3 million a year earlier, and free cash flow was $413.3 million. Cash, cash equivalents and short-term investments totaled $3,321.3 million at October 31, 2025. The company completed two acquisitions in the period: Red Canary Inc. (August 1, 2025) for a total purchase price of $651.4 million, and SPLXAI Inc. (October 31, 2025) for $40.6 million in cash. Goodwill rose to $994.5 million from $417.7 million at July 31, 2025, and business acquisitions used $672.8 million in cash during the quarter. The balance sheet includes $1,725.0 million principal of 0.0% convertible senior notes due 2028 and total remaining performance obligations of $5,932.6 million, of which 47% is expected to be recognized over the next 12 months. The company reported ARR of $3,204 million, up from $2,553 million, and a dollar-based net retention rate of 115%, which it will stop reporting beginning with its fiscal 2026 second-quarter report.
Nov 25, 2025
2025-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2025
Zscaler, Inc. filed this Form 10-Q for the quarter ended April 30, 2025 (fiscal 2025 third quarter). Revenue for the three months ended April 30, 2025 was $678.0 million, up 23% from $553.2 million a year earlier, and nine-month revenue was $1,953.9 million, up 24% from $1,574.9 million. The company reported a GAAP net loss of $4.1 million for the quarter, compared with net income of $19.1 million a year earlier, and a nine-month net loss of $23.9 million, compared with $42.8 million. GAAP loss from operations was $25.4 million for the quarter, while non-GAAP income from operations was $146.7 million, a non-GAAP operating margin of 22%. Calculated billings grew 25% to $784.5 million for the quarter, and free cash flow for the nine months was $554.8 million. The balance sheet shows cash, cash equivalents and short-term investments of $3,005.6 million as of April 30, 2025. The company's $1,150.0 million of 0.125% convertible senior notes mature on July 1, 2025, and the company elected in April 2025 to settle conversions in cash for principal, with any excess in shares. Remaining performance obligations were $4,978.0 million, with 48% expected to be recognized over the next 12 months. Dollar-based net retention was 114% for the trailing twelve months, compared with 116% a year earlier. Subsequent to quarter end, on May 27, 2025, the company agreed to acquire Red Canary, Inc. for $675.0 million in cash, plus employee equity awards, with closing expected in the first quarter of fiscal 2026 pending regulatory clearance. The company also signed a lease for a new headquarters in Santa Clara, California, with total base rent of approximately $69.5 million, with occupancy beginning September 1, 2026.
May 29, 2025
2025-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2025
Zscaler, Inc. reported revenue of $647.9 million for the three months ended January 31, 2025, up from $525.0 million a year earlier, and $1,275.9 million for the six months, up from $1,021.7 million. Loss from operations narrowed to $40.1 million for the quarter from $45.5 million, and net loss was $7.7 million, compared with $28.5 million in the prior-year quarter. The quarter's results include a $17.2 million income tax benefit from releasing the valuation allowance on U.K. deferred tax assets, which the company attributes to sustained U.K. profitability over the prior twelve quarters. Non-GAAP operating income was $140.5 million for the quarter, or 22% of revenue, compared with $103.2 million (20%) a year earlier. Net cash provided by operating activities for the six months was $510.8 million, and free cash flow was $435.3 million. Calculated billings rose $115.1 million, or 18%, for the quarter. Remaining performance obligations totaled $4,615.3 million, with 49% expected to be recognized over the next 12 months. The dollar-based net retention rate was 115% for the trailing twelve months, down from 117%. The balance sheet shows cash, cash equivalents and short-term investments of $2,880.2 million as of January 31, 2025. The company's $1,150.0 million of 0.125% convertible senior notes mature on July 1, 2025, and are carried at $1,147.5 million on the balance sheet. Management states that existing cash is sufficient for at least the next 12 months, including repayment of the notes.
Mar 10, 2025
2025-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2024
Zscaler, Inc. reported revenue of $627.96 million for the three months ended October 31, 2024, up from $496.70 million a year earlier, with the filing stating revenue increased $131.3 million, or 26%. Net loss narrowed to $12.05 million from $33.48 million, and GAAP loss from operations improved to $30.67 million from $46.06 million. Non-GAAP income from operations was $134.15 million, a 21% non-GAAP operating margin, compared with $89.71 million and 18% a year earlier. Net cash provided by operating activities was $331.34 million and free cash flow was $291.88 million, a 46% free cash flow margin. The balance sheet shows cash, cash equivalents and short-term investments of $2.71 billion as of October 31, 2024. Deferred revenue totaled $1.78 billion, of which $1.53 billion is current, and remaining performance obligations were $4.41 billion, with 49% expected to be recognized over the next 12 months. The 0.125% convertible senior notes due July 1, 2025 carry a principal amount of $1.15 billion and are a key liquidity item. The company states that existing cash is sufficient for at least the next 12 months. The filing also highlights a dollar-based net retention rate of 114% for the trailing 12 months ended October 31, 2024, down from 120% a year earlier, and a subsequent event in November 2024: a non-cancelable agreement with a public cloud provider with a total minimum purchase commitment of $300.0 million over five years.
Dec 5, 2024
2024-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2024
Zscaler, Inc. reported revenue of $553.2 million for the three months ended April 30, 2024, up 32% from $418.8 million a year earlier, and $1,574.9 million for the nine months, up 36%. Gross margin was 79% for the quarter, and GAAP loss from operations narrowed to $3.0 million from $55.7 million. The company reported net income of $19.1 million for the quarter, compared with a net loss of $46.0 million in the prior-year quarter. For the nine months, the net loss was $42.8 million. Non-GAAP operating margin for the quarter was 22%, and free cash flow for the nine months was $448.6 million, a 28% free cash flow margin. The balance sheet shows cash, cash equivalents and short-term investments of $2,240.0 million as of April 30, 2024, against $1,137.7 million of convertible senior notes, net. Deferred revenue totaled $1,577.0 million, and remaining performance obligations were $3,824.1 million, with 51% expected to be recognized over the next 12 months. Calculated billings rose 30% for both the quarter and the nine months. The company completed the Avalor and Airgap acquisitions for purchase prices of $256.7 million and $124.4 million, respectively, and reported goodwill of $417.0 million. The filing notes management's view that customers are scrutinizing purchasing decisions and requiring multiple approvals for large expenditures amid the macroeconomic environment. Dollar-based net retention was 116% for the trailing 12 months ended April 30, 2024, compared with above 125% a year earlier. The company stated that the conditions allowing holders of its 0.125% convertible notes due 2025 to convert were not met during the quarter.
Jun 7, 2024
2024-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2024
Zscaler, Inc. reported its fiscal 2024 second-quarter results for the three months ended January 31, 2024 in this Form 10-Q. Revenue rose to $525.0 million from $387.6 million, an increase of 35%, and gross margin was 78%. Loss from operations narrowed to $45.5 million from $65.2 million, and net loss narrowed to $28.5 million, or $0.19 per share, from $57.5 million, or $0.40 per share. Interest income of $28.4 million, up from $12.7 million, helped narrow the net loss. For the six months ended January 31, 2024, revenue was $1,021.7 million, up 37%, and net loss was $62.0 million. Cash flow and balance sheet metrics were strong. Net cash provided by operating activities for the six months was $402.9 million, and free cash flow was $325.5 million, versus $158.4 million a year earlier. Cash, cash equivalents and short-term investments totaled $2,459.8 million at January 31, 2024. Deferred revenue reached $1,502.2 million, and remaining performance obligations were $3,613.0 million. The company also disclosed that its 0.125% convertible senior notes due 2025 became convertible at holders' option from February 1, 2024 through April 30, 2024, because the conditional conversion trigger was met. The filing notes that a change in the estimated useful life of servers and networking equipment from four to five years reduced depreciation expense by $3.2 million in the quarter and $6.3 million for the six months, supporting the gross margin improvement. Dollar-based net retention was 117% for the trailing 12 months ended January 31, 2024. The company's calculated billings grew 27% for the quarter and 30% for the six months.
Mar 6, 2024
2024-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2023
Zscaler, Inc. (ZS) reported results for the three months ended October 31, 2023 (fiscal 2024 first quarter). Revenue was $496.7 million, up from $355.5 million a year earlier, and the filing states the increase was $141.2 million, or 40%. Subscription and support revenue accounted for approximately 97% of revenue. Net loss narrowed to $33.5 million from $68.2 million, or $(0.23) per share versus $(0.48). GAAP operating loss was $46.1 million, compared with $69.1 million in the prior-year period. Non-GAAP income from operations was $89.7 million, or 18% of revenue, versus $42.1 million, or 12%, a year earlier. Cash flow strengthened considerably. Net cash provided by operating activities was $260.8 million, versus $128.5 million, and free cash flow was $224.7 million, or a 45% free cash flow margin, compared with $95.6 million and 27% in the prior year. Cash, cash equivalents and short-term investments totaled $2,324.4 million as of October 31, 2023. Deferred revenue was $1,399.5 million, and remaining performance obligations were $3,487.4 million, of which 51% is expected to be recognized over the next 12 months. The dollar-based net retention rate was 120% for the trailing 12 months, compared with above 125% a year earlier. The filing also notes ongoing macroeconomic pressure, including customer scrutiny and longer approval processes for large deals. Stock-based compensation was $129.1 million in operating cash flow adjustments, and the Company's $1,150.0 million of 0.125% convertible senior notes due 2025 remained outstanding, with the conversion conditions not met during the quarter. Management expects to keep investing heavily in sales and marketing and research and development, and expects continued losses for the foreseeable future.
Dec 6, 2023
2023-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2023
Zscaler, Inc. reported its quarterly results for the three and nine months ended April 30, 2023 in this Form 10-Q. Revenue for the three months was $418.8 million, up from $286.8 million, and for the nine months was $1,161.9 million, up from $772.9 million. Net loss narrowed to $46.0 million for the quarter from $101.4 million a year earlier, and to $171.7 million for the nine months from $292.6 million. Loss from operations improved to $(55.7) million for the quarter from $(86.6) million. Net cash provided by operating activities for the nine months was $326.4 million, and free cash flow was $232.3 million, both up from the prior-year period. The company stated that customers were taking longer to make purchasing decisions and requiring additional approvals for large expenditures amid the challenging economic environment, and it expects this caution to continue near term. In March 2023 it announced a restructuring to reduce worldwide headcount by approximately 3%, with aggregate charges expected to be about $7.0 million. Cash, cash equivalents and short-term investments totaled $1,968.4 million as of April 30, 2023, against $1,140.8 million of carrying value for the convertible senior notes due 2025. The filing also notes the adoption of ASU 2020-06 effective August 1, 2022, which increased the carrying amount of the convertible notes by $169.9 million and reduced interest expense sharply year over year, with the company stating the notes were anti-dilutive given its net losses. Management stated that existing cash is sufficient to fund operations for at least the next 12 months.
Jun 7, 2023
2023-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2023
Zscaler, Inc. (ZS) reported its quarterly results for the three and six months ended January 31, 2023. Revenue for the three months rose to $387.6 million from $255.6 million, an increase of 52%, and for the six months rose to $743.1 million from $486.1 million, an increase of 53%. Net loss narrowed to $57.5 million for the quarter from $100.4 million a year earlier, and to $125.6 million for the six months from $191.2 million. Gross margin was 77% in the quarter, unchanged year over year, and GAAP operating margin improved to (17)% from (33)%. Net cash provided by operating activities for the six months was $217.9 million, and free cash flow was $158.4 million, compared with $112.8 million a year earlier. Cash, cash equivalents and short-term investments totaled $1,905.3 million as of January 31, 2023. The filing describes a change in accounting for the 0.125% Convertible Senior Notes due 2025, which the company adopted under ASU 2020-06 effective August 1, 2022. The adoption increased the carrying amount of the notes by $169.9 million, reduced additional paid-in capital by $273.7 million, and produced a cumulative-effect adjustment of $103.8 million to accumulated deficit. The company stated that the notes' conversion conditions were not met during the period. Subsequent events include the February 2023 acquisition of Canonic Security Technologies, Ltd. for approximately $20.3 million before adjustments, and a March 1, 2023 restructuring plan to reduce worldwide headcount by approximately 3%, with expected non-recurring charges of $8.0 million to $10.0 million. Management stated that customers are taking longer to make purchasing decisions and requesting additional approvals for large expenditures in the current economic environment. The dollar-based net retention rate was above 125% for the trailing 12 months ended January 31, 2023. The company also reported calculated billings of $493.8 million for the quarter, up 34% from the prior-year quarter, and remaining performance obligations of $2,809.2 million.
Mar 8, 2023
2023-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2022
Zscaler, Inc. reported revenue of $355.5 million for the three months ended October 31, 2022, up $125.0 million, or 54%, from $230.5 million a year earlier. Net loss narrowed to $68.2 million from $90.8 million, and loss from operations was $69.1 million compared with $74.4 million. The filing attributes the revenue increase to more users and additional subscriptions from existing customers, which contributed $83.3 million, plus new customers, and states that the customer base grew 18% from October 31, 2021 to October 31, 2022. Calculated billings rose $92.4 million, or 37%, to $340.1 million. Management also noted greater scrutiny and longer approval times for transactions, particularly larger deals, amid inflation and macroeconomic uncertainty. Non-GAAP income from operations was $42.1 million, a 12% operating margin, compared with $23.9 million and 10% a year earlier. Operating cash flow was $128.5 million and free cash flow was $95.6 million, a 27% free cash flow margin. Cash, cash equivalents and short-term investments totaled $1,824.8 million at October 31, 2022, which management says is sufficient for at least the next 12 months. Remaining performance obligations were $2,682.0 million, with 50% expected to be recognized over the next 12 months. The company adopted ASU 2020-06 effective August 1, 2022. This increased the carrying amount of its convertible senior notes by $169.9 million, reduced additional paid-in capital by $273.7 million, and produced a $103.8 million cumulative-effect adjustment to accumulated deficit. Interest expense fell to $1.3 million from $13.8 million as a result. The filing also reports that President resigned in October 2022 and remains on the Board, which led to a $9.9 million reversal of stock-based compensation.
Dec 7, 2022
2022-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2022
Zscaler, Inc. (ZS) reported its quarterly results for the three and nine months ended April 30, 2022 in this Form 10-Q, filed June 9, 2022. Revenue for the third quarter was $286.8 million, up 63% from $176.4 million a year earlier, and nine-month revenue was $772.9 million, up 62% from $476.0 million. Growth was driven by more users and additional subscriptions from existing customers, which contributed $64.7 million of the quarterly increase, plus new customers, with the customer base up 23% from April 30, 2021 to April 30, 2022. Gross margin was 78% in the quarter, but the company still posted a net loss of $101.4 million for the quarter and $292.6 million for the nine months, as sales and marketing ($192.1 million in the quarter) and research and development ($76.6 million) expenses rose sharply with headcount growth. On the balance sheet, cash, cash equivalents and short-term investments totaled $1,657.9 million at April 30, 2022, against $954.6 million of net carrying value of 0.125% Convertible Senior Notes due 2025 (principal $1,150.0 million). Deferred revenue reached $818.7 million, with $731.9 million classified as current. Nine-month operating cash flow was $218.8 million and free cash flow was $156.6 million, though the filing notes free cash flow includes cyclical ESPP timing effects. The company stated that the Notes became convertible from May 1, 2022 through July 29, 2022 because the conditional conversion threshold was met, and that it expects to settle the principal in cash. Management stated that existing resources should be sufficient for at least the next 12 months. The filing also discloses a subsequent event: on June 7, 2022 Zscaler agreed to acquire an early-stage technology company for an aggregate purchase price of approximately $44.0 million, consisting of about $26.0 million in cash and about $18.0 million in stock subject to vesting and performance conditions. Risk factors highlight continuing COVID-19 uncertainty, competition, channel partner concentration, and the accounting effects of the convertible notes on diluted earnings per share.
Jun 9, 2022
2022-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2022
Zscaler, Inc. filed this Quarterly Report on Form 10-Q for the three and six months ended January 31, 2022. Revenue grew to $255.6 million for the quarter, up $98.5 million, or 63%, from $157.0 million a year earlier, and to $486.1 million for the six months, up 62%. Gross margin was 77% for the quarter, down from 78%, as employee-related costs rose with a 82% increase in customer support and cloud operations headcount. Operating loss widened to $83.9 million from $53.9 million, and net loss for the quarter was $100.4 million, or $0.71 per share, versus $67.5 million, or $0.50 per share, a year earlier. Sales and marketing ($175.1 million), research and development ($69.2 million) and general and administrative ($37.4 million) expenses all grew sharply, and stock-based compensation expense reached $99.0 million for the quarter. Balance sheet and cash flow measures were comparatively solid. Cash, cash equivalents and short-term investments totaled $1.62 billion, and net cash provided by operating activities for the six months was $141.5 million, with free cash flow of $112.8 million. Deferred revenue rose to $759.9 million, and remaining performance obligations were $1.95 billion. The company carries $1.15 billion of 0.125% Convertible Senior Notes due 2025. The conversion feature was triggered for the quarter, so the notes are convertible from February 1, 2022 through April 29, 2022, and the company expects to settle principal in cash. The accumulated deficit reached $792.8 million. The filing also states that the company expects operating expenses to continue increasing in absolute dollars and that it has not experienced significant COVID-19 disruptions to date.
Mar 9, 2022
2022-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2021
Zscaler, Inc. filed this Quarterly Report on Form 10-Q for the first quarter of fiscal 2022, covering the three months ended October 31, 2021. Revenue rose to $230.5 million from $142.6 million a year earlier, an increase of $87.9 million, or 62%. Subscription and support revenue accounted for approximately 97% of revenue. The company reported a net loss of $90.8 million, compared with $55.0 million in the prior-year quarter, and a loss from operations of $74.4 million. Stock-based compensation expense was $89.9 million. Net cash provided by operating activities was $93.3 million, and free cash flow was $83.4 million, compared with $42.2 million a year earlier. The balance sheet shows cash, cash equivalents and short-term investments totaling $1,584.6 million as of October 31, 2021, against $1,150.0 million principal amount of 0.125% Convertible Senior Notes due 2025. Remaining performance obligations were $1,705.7 million, with 50% expected to be recognized over the next 12 months. Calculated billings were $247.7 million, up $103.0 million, or 71%. Channel partners generated 93% of revenue. Accumulated deficit reached $692.4 million. The Notes became convertible from November 1, 2021 through January 31, 2022 because the conditional conversion trigger was met. Management expects operating expenses to keep rising in absolute dollars as it invests in sales and marketing, research and development, and public-company compliance. The company states that existing cash is sufficient for at least the next 12 months, and it reports no material changes to its risk factors or contractual obligations beyond those disclosed in its fiscal 2021 Form 10-K.
Dec 8, 2021
2021-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2021
Zscaler, Inc. reported its quarterly results for the three and nine months ended April 30, 2021 in this Form 10-Q. Revenue for the three months rose to $176.4 million from $110.5 million, a 60% increase, and nine-month revenue was $476.0 million versus $305.4 million, up 56%. Subscription and support revenue was about 97% of revenue, channel partners generated 94% of the quarter's revenue, and the dollar-based net retention rate was 126% for the trailing 12 months. Gross margin held at 78% for the quarter. The company remained loss-making. The net loss was $58.5 million for the quarter and $181.0 million for the nine months, versus $19.3 million and $65.6 million a year earlier. The filing attributes a large part of the increase to stock-based compensation, which reached $178.5 million for the nine months, and to $39.7 million of interest expense tied to the 0.125% Convertible Senior Notes due 2025 issued in June 2020. Operating cash flow for the nine months was $157.3 million, and free cash flow was $116.0 million, against a nine-month operating loss of $140.4 million. Cash, cash equivalents and short-term investments totaled $1,467.6 million at April 30, 2021. The company also completed the Trustdome acquisition in April 2021 for about $31.1 million in cash, and subsequently acquired Smokescreen Technologies for about $11.5 million in cash in June 2021. Deferred revenue reached $495.4 million, and remaining performance obligations were $1,207.6 million.
Jun 3, 2021
2021-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2021
Zscaler, Inc. reported results for the three and six months ended January 31, 2021 in this Form 10-Q. Revenue was $157.0 million for the quarter, up from $101.3 million, and $299.6 million for the six months, up from $194.9 million. Gross margin was 78% for the quarter versus 80% a year earlier, and the filing attributes the decline partly to increased use of public cloud infrastructure to manage higher ZPA traffic from employees working from home. The company reported a net loss of $67.5 million for the quarter ($0.50 per share) and $122.5 million for the six months ($0.91 per share), compared with net losses of $29.2 million and $46.2 million in the prior-year periods. Loss from operations widened to $53.9 million for the quarter, and interest expense rose to $13.2 million following the June 2020 issuance of $1,150.0 million of 0.125% Convertible Senior Notes due 2025. Cash flow and liquidity improved. Net cash provided by operating activities was $83.9 million for the six months, compared with $26.9 million a year earlier, and free cash flow was $60.3 million versus $7.5 million. As of January 31, 2021, cash, cash equivalents and short-term investments totaled $1,444.7 million, and the company stated these resources are sufficient for at least the next 12 months. Remaining performance obligations were $1,024.8 million, with 53% expected to be recognized over the next 12 months. Dollar-based net retention rate was 127% for the trailing 12 months, up from 116%. The Notes became convertible from February 1, 2021 through April 30, 2021 because the stock price condition was met during the quarter, and no Notes had been converted as of the filing date. The filing also highlights ongoing risks, including the uncertain impact of the COVID-19 pandemic, intense competition, a history of net losses, and dependence on channel partners, which generated 94% of revenue in the quarter. Stock-based compensation expense was $61.4 million for the quarter, and the company expects operating expenses to continue rising as it invests in sales and marketing and research and development.
Mar 4, 2021
2021-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2020
Zscaler, Inc. reported its first-quarter fiscal 2021 results for the three months ended October 31, 2020, with revenue of $142.6 million, up from $93.6 million a year earlier, and a net loss of $55.0 million, compared with $17.1 million in the prior-year period. Subscription and support revenue accounted for approximately 97% of revenue. Channel partners generated 94% of revenue, and dollar-based net retention rate was 122% for the trailing 12 months. Gross margin was 78% versus 79% a year earlier, and the company's GAAP loss from operations was $42.7 million. Non-GAAP income from operations was $19.7 million, a 14% non-GAAP operating margin, compared with $3.7 million, or 4%, in the prior-year period. The balance sheet shows cash, cash equivalents and short-term investments of $1,416.0 million as of October 31, 2020, against $874.4 million of net carrying value of convertible senior notes due 2025. The company issued $1,150.0 million of 0.125% convertible notes in June 2020 and used $145.2 million of proceeds to buy capped calls. Interest expense of $13.0 million in the quarter was driven mainly by $12.7 million of debt discount and issuance cost amortization. Operating cash flow was $53.5 million and free cash flow was $42.2 million, a 30% free cash flow margin. Remaining performance obligations totaled $864.0 million, with 54% expected to be recognized over the next 12 months. The filing highlights continued heavy investment in growth: sales and marketing expense rose 63% and research and development rose 76%, with headcount up 68% and 50% respectively. Management states it expects net losses to continue, and it notes higher public cloud infrastructure costs tied to increased ZPA traffic from remote work during COVID-19.
Dec 8, 2020
2020-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2020
Zscaler, Inc. reported its quarterly results for the three and nine months ended April 30, 2020 in this Form 10-Q. Revenue for the three months was $110.5 million, up from $79.1 million, and for the nine months was $305.4 million, up from $216.7 million. Gross margin was 78% for the quarter versus 81% a year earlier, which the company attributes mainly to increased use of public cloud infrastructure to manage ZPA traffic from employees working from home during COVID-19. Net loss widened to $19.3 million for the quarter (from $12.2 million) and $65.6 million for the nine months (from $23.4 million). Management reports a dollar-based net retention rate of 119% for the trailing 12 months, and calculated billings of $131.3 million for the quarter, up 55%. The balance sheet shows cash, cash equivalents and short-term investments of $391.3 million as of April 30, 2020, against deferred revenue of $300.8 million. Operating cash flow for the nine months was $47.7 million, and free cash flow was $16.6 million, which includes a $15.0 million payment to Broadcom to settle the Symantec patent cases. Non-GAAP operating margin was 8% for the quarter. The company also completed the Cloudneeti acquisition in April 2020 for approximately $8.9 million in cash and, as a subsequent event in May 2020, acquired Edgewise Networks for approximately $31.0 million in cash. Management states that the COVID-19 pandemic has not yet caused a significant disruption to the business, but it cannot predict the full impact on sales cycles, customers and costs. It expects to keep investing heavily in sales and marketing and research and development, so it expects continued net losses for the foreseeable future.
Jun 3, 2020
2020-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2020
Zscaler, Inc. filed this Form 10-Q for the quarter ended January 31, 2020, reporting revenue of $101.3 million for the three months ended January 31, 2020, up from $74.3 million a year earlier, and $194.9 million for the six months, up from $137.6 million. Subscription and support revenue was approximately 98% of revenue for the three months ended January 31, 2020. The company reported a net loss of $29.2 million for the quarter (versus $3.6 million a year earlier) and $46.2 million for the six months (versus $11.1 million). Gross margin was 80% for the quarter, compared with 79% a year earlier. The quarterly loss was driven largely by general and administrative expenses of $29.0 million, which included a $15.0 million payment to Broadcom in January 2020 to settle the Symantec patent litigation. Sales and marketing expenses rose to $61.6 million from $38.8 million, and research and development expenses rose to $20.7 million from $15.1 million. Loss from operations was $30.3 million for the quarter. The filing reports non-GAAP income from operations of $10.9 million for the quarter, and free cash flow of negative $1.9 million, compared with $12.0 million a year earlier. Balance sheet and liquidity remained solid: cash, cash equivalents and short-term investments totaled $384.9 million as of January 31, 2020, and deferred revenue was $280.0 million. The company reported calculated billings of $135.4 million for the quarter, up from $115.0 million, and a dollar-based net retention rate of 116% on a trailing 12-month basis, down from 118%. Management stated that existing cash will be sufficient for at least the next 12 months.
Mar 4, 2020
2020-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2019
Zscaler, Inc. reported its first-quarter fiscal 2020 results for the three months ended October 31, 2019, with revenue of $93.6 million, up from $63.3 million in the prior-year period, and a net loss of $17.1 million, compared with $7.6 million a year earlier. Subscription and support revenue accounted for approximately 99% of revenue, channel partners generated 96% of revenue, and dollar-based net retention rate was 120% for the trailing 12 months. Gross margin was 79% versus 81% a year earlier, while sales and marketing expense rose to $59.4 million from $36.5 million, driving a loss from operations of $18.3 million. Non-GAAP income from operations was $2.9 million, and free cash flow was $9.4 million. The balance sheet shows cash, cash equivalents and short-term investments totaling $377.6 million as of October 31, 2019, and deferred revenue of $245.9 million, of which $218.2 million is current. Remaining performance obligations were $554.7 million, with 56% expected to be recognized over the next 12 months. Operating cash flow was $21.4 million, and the company stated it believes existing resources will be sufficient for at least the next 12 months. The company adopted the new lease standard effective August 1, 2019, recording operating lease right-of-use assets of $16.9 million and lease liabilities of $18.0 million. Litigation remains a key watch item: Symantec has asserted multiple patent infringement claims in two lawsuits, and the company has not recorded a liability for either case because it considers a loss not probable. The company is vigorously defending both cases. Operating losses are expected to continue as the company invests in sales and marketing, research and development, and public-company compliance.
Dec 6, 2019
2019-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2019
Zscaler, Inc. reported its quarterly results for the three and nine months ended April 30, 2019 in this Form 10-Q. Revenue for the three months was $79.1 million, up from $49.2 million, and nine-month revenue was $216.7 million, up from $134.0 million, with the filing stating a year-over-year nine-month revenue growth of 62%. The company remained unprofitable: the net loss for the quarter was $12.2 million, narrowing from a nine-month net loss of $23.4 million compared with $26.7 million a year earlier. Non-GAAP income from operations for the three months was $6.1 million, and free cash flow for the nine months was $21.8 million, versus negative $9.8 million in the prior-year period. Balance sheet and cash flow metrics show continued growth in the customer base and in advance billings. Deferred revenue rose to $211.5 million, calculated billings for the nine months were $264.2 million, and the dollar-based net retention rate was 118% for the trailing 12 months. Cash, cash equivalents and short-term investments totaled $352.7 million at April 30, 2019. Channel partners generated 96% of the quarter's revenue, and the filing discloses ongoing patent litigation with Symantec as well as a $4.1 million expense tied to the April 2019 Finjan settlement. The filing also notes that the company expects to continue incurring net losses, that operating expenses will keep rising, and that the company will lose emerging growth company status as of July 31, 2019 as it transitions to large accelerated filer status. A new San Jose headquarters lease commencing October 2019 carries about $39.1 million in total base rent, and the company acquired Appsulate, Inc. in May 2019 for approximately $13.0 million.
Jun 5, 2019
2019-Q2
Zscaler Quarterly Report for Q2 Ended Jan 31, 2019
Zscaler, Inc. reported its fiscal Q2 2019 results for the three and six months ended January 31, 2019. Revenue was $74.3 million for the quarter, up 65% from $45.0 million a year earlier, and $137.6 million for the six months, up 62% from $84.8 million. Gross margin was 79% for the quarter versus 81% a year earlier, and GAAP net loss narrowed to $3.6 million from $6.5 million. Non-GAAP income from operations was $10.0 million for the quarter, compared with a non-GAAP loss of $2.7 million in the prior-year quarter, and free cash flow was $12.0 million versus negative $4.6 million a year earlier. The company reported calculated billings of $115.0 million for the quarter, up 74%, and a dollar-based net retention rate of 118% for the trailing twelve months, down from 122% a year earlier. Remaining performance obligations were $461.0 million, with 55% expected to be recognized over the next 12 months. Cash, cash equivalents and short-term investments totaled $339.9 million at January 31, 2019, and management believes this is sufficient for at least the next 12 months. Accumulated deficit was $206.9 million. The filing highlights ongoing patent litigation with Symantec and Finjan, for which the company has not recorded a liability for Symantec and has accrued $3.2 million related to past Finjan negotiations. Headcount growth was substantial, with sales and marketing headcount up 18%, R&D up 26%, and customer support and cloud operations up 45% year over year, and stock-based compensation rose to $13.2 million for the quarter from $2.1 million.
Mar 6, 2019
2019-Q1
Zscaler Quarterly Report for Q1 Ended Oct 31, 2018
Zscaler, Inc. reported its quarterly results for the three months ended October 31, 2018, the first quarter of fiscal 2019, in this Form 10-Q. Revenue rose to $63.3 million from $39.9 million a year earlier, an increase the filing states as 59%. Gross margin was 81% versus 79% in the prior-year period. Loss from operations narrowed to $8.7 million from $11.3 million, and net loss decreased to $7.6 million from $11.4 million. Non-GAAP income from operations was $1.2 million, compared with a non-GAAP loss of $7.4 million a year earlier. Operating cash flow was $11.0 million and free cash flow was $5.2 million, against negative figures in the prior-year quarter. The balance sheet reflects the March 2018 IPO, which raised net proceeds of $205.3 million. As of October 31, 2018, cash, cash equivalents and short-term investments totaled $314.0 million, and the company stated these resources are sufficient for at least the next 12 months. Deferred revenue reached $165.3 million, and remaining performance obligations were $411.2 million, with 54% expected to be recognized over the next 12 months. The dollar-based net retention rate was 118% on a trailing 12-month basis. The filing also highlights risks. The company continues to incur net losses, with an accumulated deficit of $203.4 million. It is a defendant in patent infringement suits brought by Symantec and Finjan, and it has accrued $3.2 million related to past negotiations with Finjan, while stating it has not recorded a liability for the Symantec cases. Channel partners drove 95% of revenue in the quarter, and insiders held approximately 51.8% of common stock.
Dec 6, 2018
2018-Q3
Zscaler Quarterly Report for Q3 Ended Apr 30, 2018
Zscaler, Inc. filed this Quarterly Report on Form 10-Q for the three and nine months ended April 30, 2018, its first quarterly report after its March 2018 initial public offering. Revenue grew to $49.2 million for the quarter (up 49% from $33.0 million) and $134.0 million for the nine months (up 50% from $89.2 million). Subscription and support revenue was about 99% of total revenue, and 81% gross margin was reported for the quarter. Net loss widened to $8.8 million for the quarter and $26.7 million for the nine months, compared with $7.6 million and $22.2 million a year earlier. Calculated billings rose 73% in the quarter to $54.7 million, and the dollar-based net retention rate was 120% for the trailing 12 months. The IPO sold 13.8 million shares at $16.00, raising $205.3 million net of underwriting discounts. Cash and cash equivalents were $287.4 million at April 30, 2018, and nine-month operating cash flow was positive at $2.6 million, while free cash flow was negative $9.8 million. Remaining performance obligations were $304.7 million, with 54% expected to be recognized over the next 12 months. The company stated it expects net losses to continue and to increase in fiscal 2018 as it invests in sales and marketing and incurs higher general and administrative and legal costs. Litigation is a notable risk. Symantec has filed two patent infringement suits against the company, and Finjan has filed a third. The company has accrued $3.2 million related to past negotiations with Finjan but has not recorded a liability for the Symantec cases, which it states may be reasonably possible losses. The company states it is vigorously defending all three matters.
Jun 7, 2018