Zscaler $ZS Earnings:
EPS of $0.25 beating expectations of $0.20
Rev of $318.10M beating expectations of $305.41M
$340M next Q guidance vs $325M consensus (4% raise)

  • Revenue grows 61% year-over-year to $318.1 million
  • Calculated billings grows 57% year-over-year to $520.4 million
  • Deferred revenue grows 62% year-over-year to $1,021.1 million
  • 79% GM
  • 24% FCF Margin

I’m long $ZS
Rihard Jarc's avatar
Looks good. That 24% FCF margin as well.
Christian's avatar
@rihardjarc I love a stock that has strong FCF margins
Rihard Jarc's avatar
@christian7621 We share a similar love ;)
Christian's avatar
@rihardjarc lol of course we do. You own this name?
Rihard Jarc's avatar
@christian7621 No I don't but still love companies with great FCF margins.
Christian's avatar
@rihardjarc no I agree lol I don’t own the name either. Made a post about my investing criteria yesterday and you bet I had to talk about FCF
Christian's avatar
Top position for you?
Cameron McFarlane's avatar
@christian7621 it’s my 5th largest
Christian's avatar
@moneyshark great to hear. I don’t follow the name but maybe I should lol
Steve Matt's avatar
Nice quarter and fiscal year capper for ZScaler. They're guiding for next FY at 37% revenue growth but take that with a grain of "management sandbags guidance" salt. They came into this FY guiding for 40% growth and finished with 62%. Previous FY was 36% guidance and finished with 56%.

Full year margins were pretty much the same YoY, FCF/sh jumped from $1.06 to $1.64, dilution was just 3.9%, DBNRR was down from 128% to 125% but 125% is higher than every year prior so they've done a great job retaining their COVID bump, calculated billing was up 59%, customers generating >$100,000 ARR was up 41% while $1M ARR customers was up 62%.

I'd love to see management start releasing module usage information a la Crowdstrike.

I'm also long ZS.
Jeff Sanders's avatar
🚀🚀🚀. Go team $ZS go! Love that FCF number!
Hedge Vision's avatar
Up there with $CRWD on the fcf margin 👏
Joshua Simka's avatar
They announced new government contracts in the conference call as well. Which makes sense given that they recently achieved the distinguished FedRAMP High Authorization