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Zscaler 8-K Report, Financial Results (Sep 3, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed September 3, 2024
Period End
September 3, 2024
Security
ZS
In the record · 2018–202610-K910-Q258-K62

ZS filed 9 annual reports (10-K), 25 quarterly reports (10-Q) and 62 current reports (8-K) between 2018 and 2026.

  1. Leadership change8-K · Sep ’20Sep ’20
  2. Restructuring8-K · Mar ’23Mar ’23
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed September 3, 2024. Cited figures are marked; the original filing is the authoritative source.

Zscaler, Inc. (Nasdaq: ZS) reported fourth-quarter and fiscal 2024 results for the period ended July 31, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K dated September 3, 2024.

Fourth-quarter revenue was $592.9 milliona, up 30% year-over-year, and calculated billings were $910.8 million, up 27%. GAAP net loss narrowed to $14.9 million from $30.7 million a year earlier, while non-GAAP net income rose to $140.6 million from $100.9 million. For full fiscal 2024, revenue was $2,167.8 million, up 34%, GAAP net loss was $57.7 million, and cash provided by operations was $779.8 million, with free cash flow of $585.0 million.

The company also changed its non-GAAP measures presentation, adopting a long-term projected non-GAAP tax rate of 23% effective August 1, 2024. The filing states that the new rate is applied to all periods presented, and it shows that the fiscal 2024 non-GAAP net income per share would have been $2.60b under this rate, compared with $3.19 as reported. Management described the change as providing better consistency across interim periods in fiscal 2025 and beyond.

For fiscal 2025, Zscaler guided to revenue of approximately $2.60 billion to $2.62 billionc, calculated billings of $3.110 billion to $3.135 billion, and non-GAAP income from operations of $530 million to $540 million. Non-GAAP net income per share is expected to be $2.81 to $2.87 on about 164 million fully diluted shares and a 23% non-GAAP tax rate. For the first quarter of fiscal 2025, the company expects revenue of $604 million to $606 million and non-GAAP net income per share of about $0.62 to $0.63.

02—Key points

Key Highlights

  1. Q4 fiscal 2024 revenue of $592.9 million, up 30% year-over-year; Q4 calculated billings of $910.8 million, up 27%.
  2. GAAP net loss narrowed to $14.9 million in Q4 from $30.7 million a year earlier; non-GAAP net income rose to $140.6 million from $100.9 million.
  3. Full fiscal 2024 revenue of $2,167.8 million, up 34%; GAAP net loss of $57.7 million versus $202.3 million in fiscal 2023.
  4. Fiscal 2024 free cash flow of $585.0 million, or 27% of revenue, compared with $333.6 million, or 21%, in fiscal 2023.
  5. Cash, cash equivalents and short-term investments of $2,409.7 million as of July 31, 2024, up $309.4 million from July 31, 2023.
  6. Adopted a 23% long-term projected non-GAAP tax rate effective August 1, 2024; on that basis fiscal 2024 non-GAAP net income per share would be $2.60 versus $3.19 as reported.
  7. Fiscal 2025 guidance: revenue of $2.60 billion to $2.62 billion and non-GAAP net income per share of $2.81 to $2.87.

03—Questions

Frequently Asked Questions

  1. How did Zscaler perform in the fourth quarter of fiscal 2024?

    Revenue rose 30% year-over-year to $592.9 million, and calculated billings rose 27% to $910.8 million. GAAP loss from operations was $27.0 million, or 5% of revenue, compared with $44.6 million, or 10%, a year earlier. Management said Q4 results exceeded the high end of guidance across all metrics.

  2. What is changing in how Zscaler reports non-GAAP net income?

    Effective August 1, 2024, Zscaler is using a long-term projected non-GAAP tax rate of 23% to determine non-GAAP net income and per-share amounts. The company says this improves consistency across interim periods in fiscal 2025 and beyond. Under this rate, fiscal 2024 non-GAAP net income per share would be $2.60 instead of the $3.19 reported, and Q4 would be $0.72 instead of $0.88.

  3. What does Zscaler expect for fiscal 2025?

    For the full year, Zscaler expects revenue of approximately $2.60 billion to $2.62 billion, calculated billings of $3.110 billion to $3.135 billion, non-GAAP income from operations of $530 million to $540 million, and non-GAAP net income per share of $2.81 to $2.87 on about 164 million fully diluted shares. For Q1 fiscal 2025, it expects revenue of $604 million to $606 million.

  4. How strong is Zscaler's cash position and cash generation?

    Cash provided by operations was $779.8 million for fiscal 2024, or 36% of revenue, versus $462.3 million in fiscal 2023. Free cash flow was $585.0 million. Cash, cash equivalents and short-term investments totaled $2,409.7 million at July 31, 2024, while convertible senior notes on the balance sheet were $1,142.3 million.

  5. Did Zscaler's GAAP results improve in fiscal 2024?

    Yes. The GAAP net loss for fiscal 2024 was $57.7 million, compared with $202.3 million in fiscal 2023. GAAP loss from operations narrowed to $121.5 million from $234.6 million, and GAAP net loss per diluted share was $0.39 versus $1.40.

04—Continue

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