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Zscaler 8-K Report, Financial Results (Dec 2, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed December 2, 2024
Period End
December 2, 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 December 2, 2024. Cited figures are marked; the original filing is the authoritative source.

Zscaler, Inc. (Nasdaq: ZS) reported financial results for its first quarter of fiscal 2025, ended October 31, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K filed December 2, 2024.

Revenue was $628.0 milliona, up 26% year-over-year. Calculated billings were $516.7 million, up 13% year-over-year, and deferred revenue was $1,783.7 million, up 27% year-over-year. GAAP net loss narrowed to $12.1 million from $33.5 million a year earlier, while non-GAAP net income rose to $124.3 million from $86.4 million.

Cash provided by operations was $331.3 millionb and free cash flow was $291.9 million, or 46% of revenue. The company guided second-quarter fiscal 2025 revenue to $633 million to $635 million and non-GAAP income from operations to $126 million to $128 million, with non-GAAP net income per share of approximately $0.68 to $0.69. For full fiscal 2025, it expects revenue of approximately $2.623 billion to $2.643 billion, calculated billings of $3.124 billion to $3.149 billion, and non-GAAP income from operations of $549 million to $559 million, with non-GAAP net income per share of $2.94 to $2.99.

Effective August 1, 2024, Zscaler changed its non-GAAP tax rate to a long-term projected 23%c, and prior period amounts were recast to reflect this change. Investors should note that this change affects comparability of non-GAAP net income and per-share figures against previously reported results.

02—Key points

Key Highlights

  1. Revenue of $628.0 million, up 26% year-over-year; GAAP loss from operations of $30.7 million, or 5% of revenue, versus a $46.1 million loss, or 9% of revenue, a year earlier.
  2. Calculated billings of $516.7 million, up 13% year-over-year; deferred revenue of $1,783.7 million, up 27% year-over-year.
  3. Non-GAAP net income of $124.3 million, or $0.77 per diluted share, compared with $86.4 million, or $0.55 per share, in the prior-year quarter.
  4. Cash provided by operations of $331.3 million (53% of revenue) and free cash flow of $291.9 million (46% of revenue).
  5. Cash, cash equivalents and short-term investments totaled $2,707.9 million as of October 31, 2024, up $298.2 million from July 31, 2024.
  6. Full-year fiscal 2025 guidance: revenue of approximately $2.623 billion to $2.643 billion and non-GAAP net income per share of $2.94 to $2.99.
  7. Non-GAAP tax rate changed to a long-term projected 23% effective August 1, 2024, with prior periods recast.

03—Questions

Frequently Asked Questions

  1. How did Zscaler perform in the first quarter of fiscal 2025?

    Revenue grew 26% year-over-year to $628.0 million. GAAP net loss narrowed to $12.1 million from $33.5 million, and non-GAAP net income rose to $124.3 million from $86.4 million.

  2. What is the company's outlook for the second quarter and full fiscal 2025?

    For Q2 fiscal 2025, Zscaler expects revenue of $633 million to $635 million and non-GAAP income from operations of $126 million to $128 million. For full fiscal 2025, it expects revenue of approximately $2.623 billion to $2.643 billion, calculated billings of $3.124 billion to $3.149 billion, and non-GAAP net income per share of $2.94 to $2.99.

  3. Why did Zscaler change its non-GAAP tax rate?

    The company states it is using a long-term projected non-GAAP tax rate of 23% starting August 1, 2024, to provide better consistency across interim periods in fiscal 2025 and beyond, given the significant growth of its business and non-GAAP operating income. Prior period amounts were recast to reflect the change.

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

    Cash provided by operations was $331.3 million, and free cash flow was $291.9 million, or 46% of revenue. Cash, cash equivalents and short-term investments reached $2,707.9 million as of October 31, 2024.

  5. What business developments did Zscaler highlight?

    The company said its cloud security platform surpassed half a trillion daily transactions, appointed Adam Geller as Chief Product Officer, and announced AI and Zero Trust integrations with CrowdStrike Falcon and four new integrations with Okta.

04—Continue

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