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Apr 30, 2024

Zscaler Q3 2024 Earnings Report

Zscaler's Q3 2024 financial results were reported, demonstrating strong growth and profitability improvements.

Key Takeaways

Zscaler reported a strong third quarter in fiscal year 2024, with revenue increasing by 32% year-over-year to $553.2 million. The company achieved GAAP net income of $19.1 million, a significant improvement from the previous year's net loss. Calculated billings grew by 30% year-over-year, and free cash flow also saw substantial growth.

Revenue increased by 32% year-over-year, reaching $553.2 million.

Calculated billings grew by 30% year-over-year, amounting to $628.0 million.

GAAP net income was $19.1 million, a notable improvement from the prior year's net loss of $46.0 million.

Free cash flow increased to $123.1 million, representing 22% of revenue.

Total Revenue
$553M
Previous year: $419M
+32.1%
EPS
$0.88
Previous year: $0.48
+83.3%
Calculated Billings
$628M
Previous year: $482M
+30.2%
Gross Profit
$438M
Previous year: $323M
+35.6%
Cash and Equivalents
$1.26B
Previous year: $1.28B
-1.3%
Free Cash Flow
$123M
Previous year: $73.9M
+66.6%
Total Assets
$4.2B
Previous year: $3.2B
+31.2%

Zscaler

Zscaler

Forward Guidance

For the fourth quarter of fiscal 2024, Zscaler expects revenue between $565 million and $567 million, non-GAAP income from operations between $107 million and $109 million, and non-GAAP net income per share between $0.69 and $0.70.

Positive Outlook

  • Revenue is expected to be between $565 million and $567 million.
  • Non-GAAP income from operations is projected to be between $107 million and $109 million.
  • Non-GAAP net income per share is anticipated to be approximately $0.69 to $0.70.
  • Full year revenue is expected to be approximately $2.140 billion to $2.142 billion.
  • Full year calculated billings are projected to be between $2.603 billion to $2.606 billion.

Challenges Ahead

  • These statements are forward-looking and actual results may differ materially.
  • Guidance for non-GAAP income from operations excludes stock-based compensation expense.
  • Guidance excludes amortization of debt issuance costs.
  • Guidance excludes amortization expense of acquired intangible assets.
  • Certain items are out of the company's control or cannot be reasonably predicted.