ZScaler (ZS) reported earnings on Tue 10 Sept 19 (a/h)

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ZScaler beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs above consensus; guides FY20 EPS below consensus, revs in-line; appoints Dali Rajic as President Go-To-Market and Chief Revenue Officer

Reports Q4 (Jul) earnings of $0.07 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $0.02; revenues rose 53.2% year/year to $86.1 mln vs the $82.83 mln S&P Capital IQ Consensus. Billings +32% to $126 mln vs. +55% in Q3.

Co issues mixed guidance for Q1, sees EPS of $0.00-0.01, excluding non-recurring items, vs. $0.03 S&P Capital IQ Consensus; sees Q1 revs of $89-90 mln vs. $87.60 mln S&P Capital IQ Consensus.

Co issues guidance for FY20, sees EPS of $0.12-0.15, excluding non-recurring items, vs. $0.20 S&P Capital IQ Consensus; sees FY20 revs of $395-405 mln vs. $402.82 mln S&P Capital IQ Consensus.

Co announced the appointment of Dali Rajic as President Go-to-Market and Chief Revenue Officer. Rajic has nearly 25 years of experience in sales leadership and go-to-market operational roles, most recently at AppDynamics 

ZScaler (ZS) reported earnings on Thur 28 Feb 19 (a/h)

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ZScaler beats by $0.10, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY19 EPS above consensus, revs above consensus

• Reports Q2 (Jan) earnings of $0.09 per share, $0.10 better than the S&P Capital IQ Consensus of ($0.01); revenues rose 65.1% year/year to $74.3 mln vs the $66.25 mln S&P Capital IQ Consensus.
• Calculated billings grew 74% year-over-year to $115.0 million.
• Co issues upside guidance for Q3, sees EPS of $0.01 vs. ($0.02) S&P Capital IQ Consensus; sees Q3 revs of $74-$75 mln vs. $67.97 mln S&P Capital IQ Consensus.
• Co issues upside guidance for FY19, sees EPS of $0.11-$0.13 vs. ($0.02) S&P Capital IQ Consensus; sees FY19 revs of $289-$291 mln vs. $271.94 mln S&P Capital IQ Consensus.

The company aims to capitalize on a big shift in the enterprise software market as companies acquire Microsoft's (MSFT) Office 365 and other tools in the cloud.

Zscaler's cloud platform enables customers to route data traffic to external data centers where Zscaler houses its hardware and software cybersecurity tools. San Jose, Calif.-based Zscaler has installed cybersecurity tools in 100 data centers worldwide.

ZScaler (ZS) reported earnings on Wed 6 June 2018 (a/h)

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• 4 days later:

ZScaler beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs above consensus 

• Reports Q3 (Apr) loss of $0.02 per share, $0.06 better than the Capital IQ Consensus of ($0.08); revenues rose 49.5% year/year to $49.2 mln vs the $46.04 mln Capital IQ Consensus.
• Calculated billings grow 73% y/y to $54.7 million.
• Free cash flow was $3.7 million, or 7% of total revenue, compared to negative $1.8 million, or 5% of total revenue, in 3Q17.
• Co issues upside guidancefor Q4, sees EPS of ($0.06)-($0.05) vs. ($0.09) Capital IQ Consensus Estimate; sees Q4 revs of $50-$51 mln vs. $48.38 mln Capital IQ Consensus Estimate.

Zscaler (ZS) started trading on the Nasdaq on 16 March 2018

• 12.0 million (originally 10.0 million) shares priced at $16, above the upwardly revised range of $13-$15 (originally $10-$12). 
• The deal raised $192 million in gross proceeds, which is $82 million, or, 75% more than anticipated. 

OverviewZS is the developer of a security cloud platform which is distributed to more than 100 data centers helping them to accelerate their IT migration to the cloud. This includes the migration of applications from a corporate data center to the cloud, and from a legacy "hub-and-spoke" system (WANs) to an updated direct-to-cloud network. ZS' platform allows traffic to be routed locally and securely to the internet via broadband and cellular connections.

The company's two core services are:

• ZScaler Internet Access (ZIA): This solution securely connects users to externally managed apps, including SaaS applications, and internet destinations, regardless of device, location, or network. It is designed to ensure malware does not reach the user and valuable corporate data remains safe.

• ZScaler Private Access (ZPA): This service offers authorized users secure and reliable access to internally managed applications hosted in enterprise data centers or the cloud. The ZPA product connects a specific user to specific applications, without bringing the user on the network. This results in better security and is different from traditional remote access solutions like VPNs.

ZS has over 2,800 customers across all major geographies and its customer base spans every major industry. It implements a joint sales approach in which its sales force develops relationships directly with customers. It bolsters its sales presence by levering its network of telecom service providers, system integrators, and re-seller partners.

Financials
Looking at the financials, for FY17, revenue jumped by 56% to $156.4 million. The growth in revenue was driven by a 14% increase to its customer base, as well as sales of additional subscriptions to existing customers. This is reflected by its very healthy dollar-based retention rate of 115%.

Meanwhile, gross margin increased to 78% from 75%, due to better efficiency of its technology, infrastructure, and data centers, enabling technological improvements.

But, despite the strong revenue growth and rise in gross margin, its loss from operations widened to ($35.1) million from ($26.8) million in FY16. The cause is tied to a a 60% spike in Research & Development costs, due to increased headcount, and a 118% surge in General & Administrative costs. 

Address
110 Baytech Dr Ste 100
SAN JOSE, CA 95134-2302
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+1-408-5330288 (Phone)
+1-302-6365454 (Fax)
Website  https://www.zscaler.com/