Companies /Technology

Zscaler Inc

NASDAQ: ZS Software - Infrastructure
$185.37
▼ $1.93 (−1.03%) today
Markets open · 3:01pm ET

Q4 2024 Earnings

Reported Sep 3, 2024, 4:07pm ET · SEC source
$0.88
Beat +27.54%
EPS · est. $0.69
$592.9M
Beat +4.39%
Revenue · est. $567.9M
+6.7%
Beating market
ZS vs S&P since report
10 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−14%−7%0+7%Sep 3Sep 4report 4:07pm ETearnings−0.4%−14.1%
−14%−7%0+7%Sep 3Sep 4earnings−0.4%−14.1%
ZS −14.1%S&P 500 −0.4%
−14%−7%0+7%Sep 3Sep 4report 4:07pm ETearnings−0.5%−14.1%
−14%−7%0+7%Sep 3Sep 4earnings−0.5%−14.1%
ZS −14.1%NASDAQ −0.5%
−8%0+8%+16%Sep 3Sep 11report 4:07pm ETearnings+0.5%−4.7%
−8%0+8%+16%Sep 3Sep 11earnings+0.5%−4.7%
ZS −4.7%S&P 500 +0.5%
−8%0+8%+16%Sep 3Sep 11report 4:07pm ETearnings+1.5%−4.7%
−8%0+8%+16%Sep 3Sep 11earnings+1.5%−4.7%
ZS −4.7%NASDAQ +1.5%
−18.67%
Day of report
+3.26%
Next session
+2.91%
One week
+10.69%
30 days

S&P 500 over the same 30 days: +4.00%.

Did ZS Beat Earnings? Q4 2024 Results

Zscaler delivered a strong finish to fiscal 2024, posting Q4 revenue of $592.87 million, up 30.3% year over year and ahead of the $567.93 million consensus, while non-GAAP EPS of $0.88 beat the $0.69 estimate by 27.54%. The results were driven in large part by accelerating demand visibility, with calculated billings rising 27% to $910.83 million and deferred revenue climbing 32% to $1.89 billion, underscoring the durability of the company's zero-trust security platform. Non-GAAP operating income expanded to $127.54 million, representing a 22% margin compared to 19% a year earlier, and free cash flow reached $136.32 million. For the full fiscal year, revenue totaled $2.17 billion, up 34%. Looking ahead, Zscaler guided Q1 FY2025 revenue of $604 million to $606 million and full-year revenue of approximately $2.60 billion to $2.62 billion, with full-year non-GAAP EPS of $2.81 to $2.87 under a newly adopted 23% long-term non-GAAP tax rate.

Key Takeaways
  • 30% year-over-year revenue growth driven by customer adoption of the Zero Trust Exchange platform
  • 27% year-over-year growth in calculated billings to $910.8 million
  • 32% year-over-year growth in deferred revenue to $1,895.0 million indicating strong future revenue visibility
  • Non-GAAP operating margin expansion to 22% from 19% year-over-year
  • Free cash flow margin of 23% in Q4, up from 22% year-over-year

“We ended a successful Fiscal 2024 with Q4 results exceeding the high end of our guidance across all metrics. Customers adoption of our Zero Trust Exchange platform is stronger than ever, and I'm thrilled to share that we have achieved a major milestone with our cloud platform surpassing over half a Trillion transactions daily. I'm excited about the year ahead, as we enter Fiscal 2025 with a strong go-to-market machine and a high pace of innovation.”

Zscaler CEO, on the earnings call

Forward Guidance & Outlook

For Q1 FY2025, Zscaler expects revenue of $604 million to $606 million, non-GAAP operating income of $114 million to $116 million, and non-GAAP EPS of approximately $0.62 to $0.63 (assuming ~164 million diluted shares and a 23% non-GAAP tax rate). For the full year FY2025, the company expects revenue of approximately $2.60 billion to $2.62 billion, calculated billings of $3.110 billion to $3.135 billion, non-GAAP operating income of $530 million to $540 million, and non-GAAP EPS of $2.81 to $2.87 (assuming ~164 million diluted shares and a 23% non-GAAP tax rate).

ZS YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$200.0M$400.0M$600.0M$455.0M$592.9MRevenue$352.3M$462.7MGross Profit$-19,851,208$-26,950,000Operating Income$-9,820,462$-14,878,000Net Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.