Zscaler, Inc Zs 10k Annual Reports & 10q Sec Filings

Cloud-based protection trends are accelerating, and moaty companies are positioned to reward investors. WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. Between pre-market action and the end of the trading session, Zscaler share price swung about 14 percentage points lower.

Now, let me provide some business highlights for the fourth quarter. Our ZIA business is accelerating due to our customers focus on work from anywhere. I hope all of you and your families are staying healthy and safe.

  • Analysts had been expecting non-GAAP earnings of $0.12 per share on sales of $212.3 million, according to Seeking Alpha.
  • Retailers’ earnings, more economic reports, and a much anticipated IPO.
  • With the highest levels of FedRAMP certifications of both ZIA and ZPA, which involves a rigorous process, we are positioned very well in this large market and we are proud to help our government customers do their critical work in these trying times.
  • But also, what we are planning is a number of customers we’re talking to now or I would say, prospects we’re talking to now are saying, yes, we bought a bunch of VPNs of whatever or BDIs for a short-term need to be met.
  • We define calculated billings as total revenue plus the change in deferred revenue in a period.
  • As a reminder, these numbers are all non-GAAP which excludes stock-based compensation expenses.
  • WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

The light blue line represents the company’s estimated revenue based on the consensus of Wall Street analysts for each quarter. Provide specific products and services to you, such as portfolio management or data aggregation. For the fiscal year 2021, the company estimates non-GAAP earnings to be in the range of $0.28 to $0.30 per share and revenue to come in the range of $580 million to $590 million.

Zs Vs Software Infrastructure Stocks

These indicators suggest that the stock could see some consolidation before resuming its trend higher. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. But the total amount, the numeric amount will be substantially higher in fiscal ’21 than fiscal ’22 — or fiscal ’20 that we hired. Thank you for taking my question and congrats on a very impressive set of results. That was pretty one of the biggest things we saw with you guys increase in sales headcount by a net 60% in hindsight, very astute decision. If you can give us any metrics around, I guess, the headcount of hiring, would be great, and a net amount, that would be awesome, just how to think about the momentum there and I guess how you see that trending.

zscaler revenue 2020

The business involves handling sensitive customer information, hence they needed inspection of all traffic including SSL for comprehensive data protection. When employees are allowed to directly access SaaS applications and the Internet from their homes, security becomes a major risk and they need ZIA. We continue to see the increased adoption of our high-end Transformation Bundle, which includes cloud firewall and sandbox. At the end of fiscal ’20, 49% of our ZIA annual recurring revenue is coming from the Transformation Bundle compared to 43% last year. Let me share two ZIA deals in the quarter that show our accelerated momentum with the financial services customers.

Data Plane

What I can say though to give you some perspective, we do expect to increase the number of heads that we increased fiscal ’20 in our field sales organization substantially. So we are — as I mentioned, we see the market coming to us. So evaluation of Zscaler ZIA and ZPAs aren’t driven by some of those needs not for the short term but for architectural transformation. The second big trend we are seeing is that because of macroeconomic pressures, every CIO and more and more CFOs are trying to figure out how to do cost consolidation and simplification. So now, they’re beginning to buy more and more bigger platform bundles than smaller bundles, that has led to our increase of Transformation Bundle on the ZIA side but also combination of ZIA, ZPA together on other side.

And does that put you in conflict with some of the CDN players or are you more a partner with them? I’m wondering if you could juxtapose the guidance for billings next year around 30% with the capacity growth you had in sales, which I think is about double that. Obviously, there’s some puts and takes around productive reps and so forth. While we will balance growth and profitability, growth will take priority considering our significant market opportunity. We are confident of reaching our target operating model within the next four years. We see a good mix of ZPA opportunities between new and existing customers.

It’s now coming to us because of basically the external factors which are hitting the world. And then the missing piece basically is the go-to-market. Related to, as Jay mentioned on the call, we planned initially for fiscal ’20 that our sales productivity will be down. The key thing to remember is that we see the market coming to us. A new customer initially engaged us to secure SD-WAN for 120 offices.

Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Sign Up NowGet this delivered to your inbox, and more info about our products and services. Zscaler was one of a few cybersecurity stocks that rose on Thursday following Russia’s invasion of Ukraine. To ensure our website performs well for all users, the ebay problems today 2022 SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

Traders should watch for consolidation between near- and long-term trendline resistance levels. If the stock breaks out, traders could see a move toward fresh highs. If the stock breaks down, traders could see a move toward trendline support at around $150.00. From a technical standpoint, the stock broke out from near-term trendline resistance toward long-term trendline resistance. The RSI moved into overbought territory with a reading of 73.44, but the MACD remains in a strong bullish uptrend.

Zscaler Total Revenue Worldwide From 2016 To 2021

Launched the Zscaler Summit Partner Program to help customers and prospects achieve secure digital transformation by fostering tighter collaboration with partners. The program will create long-term partner growth by expanding opportunities and providing the training that partners need to become trusted advisors to customers. Hosted virtual Zenith Live 2021 across the Americas, Europe and Asia Pacific, with keynote participants from Accenture, Freddie Mac, HSBC and other global leaders in their space. Zscaler shares rose more than 25% during Thursday’s session after the company reported better-than-expected fiscal first quarter financial results.

zscaler revenue 2020

Omicron variant fears hit markets worldwide, and the first case was discovered in the US on Wednesday. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements.

Zs Earnings Call For The Period Ending June 30, 2020

Since February, Zscaler Private Access traffic grew over 10x and the Zscaler Cloud Security Platform reached a new milestone of securing 100 billion transactions per day. We did not hold restricted cash for any periods presented.

That’s why we are seeing the acceleration in our business. So if you think of digital transformation, it has three pieces to it. Everything starts with application transformation, modernization because people need to access applications maybe business application, collaborations alike. Remaining performance obligations or RPO, which represents our total committed non-cancelable future revenue was $783 million on July 31, up 41% from one year ago.

So we have benefited and formed consolidation, simplification, reduction of complexity as well. But also, what we are planning is a number of customers we’re talking to now or I would say, prospects we’re talking to now are saying, yes, we bought a bunch of VPNs of whatever or BDIs for a short-term need to be met. And it sounds like you have a more — and I think that naturally led to higher ZPA attach rates. Could you maybe talk about strategically what you’re seeing with customers? Do they now have time to reassess their network architecture?

ZEN utilizes a full proxy architecture for in-line traffic inspection and is built to ensure data is not written to disk to maintain the highest level of data security. Logs are continuously created in memory and forwarded to our logging module. Zscaler Central Authority monitors our entire security cloud and provides a central location for software and database updates, policy and configuration settings and threat intelligence.

Zscaler said revenue rose almost 63% in the quarter, which ended Jan. 31, according to a statement. It was the fastest growth the company had achieved in three years, CEO Jay Chaudhry said in the statement. But it reported a $100.4 million net loss, which widened from $67.5 million the year-ago quarter. In May 2020, Zscaler acquired Edgewise Networks, a pioneer in securing application-to-application communications in public https://xcritical.com/ clouds and data centers. Edgewise customers measurably reduce the attack surface to lower the risk of application compromise and data breaches by simplifying the security of east-west communications through identity-based segmentation. In April 2020, Zscaler acquired Cloudneeti Corporation, a cloud security posture management company which prevents and remediates misconfigurations of applications in SaaS, IaaS and PaaS.

Revenue Quarterly Range, Past 5 Years

We have a large upsell opportunity as only 35% of our 450 Global 2000 customers have purchased ZPA. Our strong customer retention and ability upsell have resulted in a consistently high dollar-based net retention rate, which is 120% for the quarter compared to 118% a year ago and 119% last quarter. As we have highlighted, this metric will vary quarter to quarter. MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security. Real-time analyst ratings, insider transactions, earnings data, and more. Retailers’ earnings, more economic reports, and a much anticipated IPO.

We invested heavily this year to build our sales machine that we believe can demonstrate our compelling value to enterprises, drive larger deals and deliver consistent sales execution to take Zscaler beyond a $1 billion in annual revenue. Let me highlight a few of the go-to-market accomplishments. We significantly expanded our sales leadership by adding extra depth in our regional management. Ladies and gentlemen, thank you for standing by, and welcome to the Zscaler fiscal fourth quarter and full-year 2020 earnings conference call. After the speakers’ presentation, there will be a question-and-answer session.

I believe that the service is a must for anyone looking to own the right stock at the right price. Check out alphaspread.com and get started with a 7-day free trial. Should Zscaler’s poor trading performance on December 1 be merely a function of broad market-driven deterioration in sentiment, this could prove to be a temporary headwind and a buy-the-dip opportunity.

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Zscaler Reports Third Quarter Fiscal 2020 Financial Results

Consistently recognized as a leader by Forrester and Gartner. The evolution of social, mobile, and cloud has created a need for different security requirements and connectivity. Zscaler’s purpose-built security platform puts your defenses and controls where the connections occur— the internet — so that every connection is fast and secure, no matter how or where users connect or where their applications reside. All network security companies including firewalls, they’re trying to secure the network. Our architecture is totally opposite to other architecture. So while we see them on some of the lower accounts when it comes to large enterprises, they are very savvy, they understand zero trust, they understand security, they understand proxy architecture.

But isn’t that ZPA now being a help in terms of opening up new accounts, as well as just selling into the installed base of ZIA, so to speak? But if you could just give us a little color on how we should be thinking about the growth rate in ’21. And is it, in fact, opening new doors for you as a stand-alone? And then what’s happened basically we’re seeing an acceleration in our business, as I talked about before. We are focused on end-to-end monitoring and performance of the user from user to the application. The network is a piece of it, application is a piece of it, and end-user device may be a piece of it.

Zscaler Earnings Date, Estimates, & History

The gross margin was better than our guidance of 76% to 77% as we made solid progress on migrating more of the ZPA traffic to our data centers during the quarter. As we mentioned previously, our combined gross margins of our core products ZIA and ZPA are expected to return to 80% in the second half of fiscal 2021. As a result, we expect total corporate gross margins to be 78%, 79% in fiscal 2021. While good for our business, our increased success selling bigger Transformation Bundles selling both ZIA and ZPA from the start and faster upsells within a year can reduce our dollar-based net retention rate in the future.

Traditional network security vendors are trying to co-opt our vision of cloud security after rejecting it for years. They’re trying to retrofit the legacy appliances into a cloud world. To start with our platform, Zscaler stands for Zenith of Scalability. True to our name, our platform continues to scale to new heights. Zscaler Zero Trust Exchange is the largest in-line cloud security platform in the world, and we are processing more than 120 billion transactions and blocking more than 100 million threats per day from users across 185 countries. This large dataset feeds our machine learning and AI engines for superior threat protection, better detection of user and application traffic anomalies, and faster resolution of performance bottlenecks.

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