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Apr 30, 2020

Zscaler Q3 2020 Earnings Report

Reported strong financial results driven by sales execution and the increasing need for cloud security solutions during the COVID-19 pandemic.

Key Takeaways

Zscaler reported a strong third quarter with revenue growing 40% year-over-year to $110.5 million and calculated billings increasing 55% year-over-year to $131.3 million. The company benefited from the increased demand for secure remote access solutions due to the COVID-19 pandemic.

Revenue increased by 40% year-over-year, reaching $110.5 million.

Calculated billings grew by 55% year-over-year to $131.3 million.

GAAP net loss was $19.3 million, compared to a net loss of $12.2 million in the third quarter of fiscal 2019.

Non-GAAP net income was $9.0 million, compared to $7.4 million in the third quarter of fiscal 2019.

Total Revenue
$111M
Previous year: $79.1M
+39.7%
EPS
$0.07
Previous year: $0.05
+40.0%
Calculated Billings
$131M
Previous year: $84.7M
+55.1%
Cash and Equivalents
$125M
Free Cash Flow
$9.11M

Zscaler

Zscaler

Forward Guidance

For the fourth quarter of fiscal 2020, Zscaler expects total revenue of $117 million to $119 million and non-GAAP earnings per share of approximately $0.02 to $0.03.

Positive Outlook

  • Total revenue of $117 million to $119 million
  • Non-GAAP income from operations of $2 million to $4 million
  • Non-GAAP earnings per share of approximately $0.02 to $0.03
  • Assuming approximately 140 million common shares outstanding
  • Full year fiscal 2020, total revenue of $422 million to $424 million

Challenges Ahead

  • Calculated billings of $529 million to $531 million
  • Non-GAAP income from operations of $24 million to $26 million
  • Non-GAAP earnings per share of $0.20 to $0.21
  • Assuming approximately 138 million common shares outstanding
  • Forward-looking statements and actual results may differ materially