Zscaler (ZS) Q2 2022 Earnings
Did ZS Beat Earnings? Q2 2022 Results
Yes. Zscaler reported Q2 2022 earnings of $0.13 a share on Feb 24, 2022, beating the $0.11 consensus estimate by 18.2%. Revenue was $255.6M against a $241.6M estimate.
Zscaler posted a convincing beat across the board in its fiscal second quarter of 2022, with revenue climbing 62.7% year-over-year to $255.56 million against a consensus estimate of $241.56 million, while non-GAAP earnings of $0.13 per diluted share cleared the $0.11 analyst estimate by 18.18%. The cybersecurity company's results were powered by accelerating enterprise adoption of its Zero Trust security platform, as organizations deepened digital transformation spending, a dynamic reflected in calculated billings surging 59% to $367.68 million and deferred revenue rising 70% to $759.93 million. Operating cash flow reached $48.26 million, or 19% of revenue, and the company closed the quarter with $1.62 billion in cash and short-term investments. Looking ahead, Zscaler raised its full-year fiscal 2022 revenue guidance to a range of $1.04 billion to $1.05 billion, with non-GAAP EPS expected between $0.54 and $0.56, while third-quarter revenue guidance of $270 million to $272 million signals continued confidence in sustained demand for its cloud-native security architecture.
- Continued demand for Zero Trust security platform driven by enterprise digital transformation
- Revenue growth rate reached highest level in three years
- Surpassed $1 billion in annualized revenue
- Calculated billings grew 59% year-over-year to $367.7 million
- Deferred revenue grew 70% year-over-year to $759.9 million
“Driven by continued demand for our Zero Trust security platform, we delivered strong results for the second quarter, with our year-over-year revenue growth rate reaching its highest level in three years, even as we surpassed $1 billion in annualized revenue.”
Zscaler CEO, on the earnings call
What Was Zscaler's Outlook in Q2 2022?
For Q3 fiscal 2022, Zscaler expects total revenue of $270 million to $272 million, non-GAAP income from operations of $19 million to $20 million, and non-GAAP net income per share of approximately $0.10 to $0.11 on approximately 149-150 million diluted shares. For full-year fiscal 2022, the company expects total revenue of $1.045 billion to $1.05 billion, calculated billings of $1.365 billion to $1.37 billion, non-GAAP income from operations of $95 million to $98 million, and non-GAAP net income per share of $0.54 to $0.56 on approximately 149-150 million diluted shares.
ZS YoY Financials
| Metric | Q2 2022 | Q2 2021 | Year over year |
|---|---|---|---|
| Revenue | $255.6M | $157.0M | +62.7% |
| Gross Profit | $197.8M | $122.8M | +61.0% |
| Operating Income | −$83.9M | −$189.5M | −55.7% |
| Net Income | −$100.4M | −$195.7M | −48.7% |
Figures from SEC filings and company reports. Not investment advice.