Zscaler (ZS) reported first-quarter fiscal 2025 non-GAAP earnings of 77 cents per share, which outpaced the Zacks Consensus Estimate by 22.2%. Moreover, the bottom line experienced a significant 40% rise driven by higher revenues and efficient cost management.Zscaler’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.9%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zscaler’s first-quarter fiscal 2025 revenues of $628 mil ...

The equity is brushing off a quarterly win and slew of bull notesZscaler Inc (NASDAQ:ZS) stock is 4.8% lower to trade at $198.53 at last check, after the cloud company's dismal forecast for the fiscal second quarter overshadowed a fiscal first-quarter earnings and revenue beat. The equity is also also brushing off seven price-target hikes, including one from Oppenheimer to $250 from $230.Shares are slipping back below the $200 region, which acted as a resistance level in July, August, and October. Cooling f ...

Zscaler Inc ZS reported better-than-expected fiscal first-quarter financial results after the market close on Monday.Zscaler reported first-quarter revenue of $628 million, beating the consensus estimate of $606.19 million. The cybersecurity company reported adjusted earnings of 77 cents per share, beating analyst estimates of 63 cents per share, according to Benzinga Pro."Growing customer engagements and strong sales execution drove a solid first quarter with all metrics exceeding our guidance. The combina ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

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Zscaler (NASDAQ: ZS ) stock lost around 8% yesterday after the market close due to the Q3 earnings release. I tend to disagree with the market's reaction because the company delivered a solid quarter. Financial and critical business metrics demonstrated solidAs an investor who started my path five years ago with my own capital, I represent a blend of hands on experience and academic background in corporate finance. Due to my relatively young age I thrive on discovering long-duration growth opportunities and ...

Financial Data and Key Metrics - Revenue grew 26% YoY to $628 million, with Americas contributing 54%, EMEA 30%, and APJ 16% [33] - Calculated billings grew 13% YoY to $517 million, with unscheduled billings (new, upsell, and renewal) growing over 20% YoY [33][34] - Operating profit increased 50% YoY, with operating margin reaching a record 21% and free cash flow margin at 46% [9] - Remaining Performance Obligations (RPO) grew 26% YoY to $4.411 billion, with current RPO representing 49% of total RPO [34] - 12-month trailing dollar-based net retention rate was 114%, driven by larger bundles and faster upsells [35] - Gross margin was 80.6%, slightly down from 80.7% in the year-ago quarter [36] - The company ended Q1 with $2.7 billion in cash, cash equivalents, and short-term investments [37] Business Line Performance - Zero Trust Exchange platform and AI solutions drove bookings growth of over 30% [8] - ZPA (Zero Trust Private Access) is a significant growth driver, contributing over 40% of new and upsell business [66] - Emerging products, including ZDX, Zero Trust for Branch and Cloud, and AI analytics, are growing twice as fast as core products [22][79] - Data protection solutions are seeing strong demand, with a Fortune 500 pharma company doubling its annual spend with Zscaler [20] - ZDX Copilot and AI-powered solutions are contributing to large deal wins, such as a healthcare provider doubling its ZIA subscription to 60,000 seats [13] Market Performance - The company secured over 35% of Global 2000 and 45% of Fortune 500 companies [18] - Federal vertical saw a new cabinet-level agency win, now serving 14 of the 15 cabinet-level agencies, including the DoD [26] - International opportunities are expanding, with governments in Australia, the EU, Japan, Singapore, the UK, and the US planning to adopt Zero Trust architecture [27] Strategic Direction and Industry Competition - The company is leveraging AI to enhance its Zero Trust platform, focusing on securing AI applications, automating digital experiences, and improving cyber and data protection [10][12][14] - Zscaler is targeting the replacement of legacy firewalls and VPNs with its Zero Trust solutions, particularly in the context of hardware refresh cycles [71][72] - The company is shifting from opportunity-based selling to account-centric selling, resulting in stronger customer engagement and higher-quality pipeline [28][29] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand for AI security offerings and a growing pipeline, with sales capacity strengthening due to lower attrition [52] - The company expects to continue growing the number of $1 million-plus and $5 million-plus customers, driven by a mature pipeline and strong partner engagements [29][30] - Full-year guidance includes revenue growth of 21-22% and billings growth of 19-20%, with free cash flow margin expected to be 23.5-24% [39][40] Other Important Information - The company will attend several upcoming conferences, including the UBS Global Technology and AI Conference and the Barclays Global Technology Conference [5] - CFO Remo Canessa announced his retirement after eight years with the company, during which Zscaler grew from less than $250 million to over $2.5 billion in ARR [42][45] Q&A Session Summary Question: Unscheduled billings growth and future expectations - Unscheduled billings grew 20% YoY, exceeding expectations, and is expected to remain strong in the second half of the fiscal year [51][52] Question: Data security and Microsoft Copilot integration - Zscaler is leveraging its integration with Microsoft to secure Copilot deployments, with a G2000 company signing a seven-figure deal for AI-powered data protection [59][60] Question: ZPA growth and VPN replacement cycle - ZPA is a significant growth driver, with over 40% of new and upsell business coming from ZPA and ZIA combined. The company sees a long runway for VPN replacement and Zero Trust adoption [65][66] Question: Firewall refresh opportunities - Zscaler is targeting customers with firewall refresh cycles, leveraging its Zero Trust SD-WAN and device segmentation solutions to replace traditional firewalls [71][72] Question: Emerging products and their contribution - Emerging products, including ZDX, Zero Trust for Branch and Cloud, and AI analytics, are growing twice as fast as core products and contributing to large deal wins [77][79] Question: Federal market and DoD opportunities - Zscaler continues to gain share in the federal market, with 14 of 15 cabinet-level agencies as customers. The company sees significant upsell opportunities in this vertical [102][103] Question: Data protection solution growth - Data protection solutions are growing faster than the overall business, driven by AI-related security concerns and comprehensive platform capabilities [118][119] Question: GSI-led deals and their impact - Global System Integrators (GSIs) are playing an increasingly important role in driving large deals, particularly in Zero Trust SD-WAN and device segmentation [113][114]

Monday, December 2, 2024Both the S&P 500 and the Nasdaq indexes have closed Monday’s trading session at new market highs. The S&P opened the day slightly up and kept steady: +14 points to 6047. The Nasdaq, which outperformed the other major indexes on the day for its best trading session in nearly as month, grew +185 points to 19,403. The small-cap Russell 2000 also looked ready to set a new all-time closing high, but petered out in the final minutes of the session.The Dow sank early today and could not gai ...

Zscaler (ZS) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this cloud-based information security provider would post earnings of $0.69 per share when it actually produced earnings of $0.88, delivering a surprise of 27.54%.Over the last fou ...

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