NASDAQ$ZS

Zscaler Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported first quarter fiscal year 2022 financial results, with revenue growing 62% year-over-year.

Zscaler reported strong first-quarter fiscal 2022 results, with revenue increasing by 62% year-over-year to $230.5 million and calculated billings growing 71% year-over-year to $247.7 million. The company achieved surpassing $1 billion in annual recurring revenue and is now focusing on achieving $5 billion in ARR.

  • Revenue grew 62% year-over-year to $230.5 million.
  • Calculated billings grew 71% year-over-year to $247.7 million.
  • Deferred revenue grew 74% year-over-year to $647.8 million.
  • GAAP net loss was $90.8 million, while non-GAAP net income was $21.0 million.

Headline financials

Total Revenue

$231M

Previous: $143M+61.7%
EPS (adj)

$0.14

Previous: $0.14+0.0%
Total Deferred Revenue

$648M

Previous: $372M+74.2%
Capital Expenditures

-$6.45M

Previous: -$8.9M+27.5%
Free Cash Flow

$86.8M

Previous: $44.6M+94.5%
Net Income

-$90.8M

Previous: -$55M-65.1%
Operating Income

-$74.4M

Previous: -$42.7M-74.3%
Gross Profit

$178M

Previous: $111M+60.9%
Cash & Equivalents

$372M

Previous: $102M+264.4%
Total Assets

$2.27B

Previous: $1.85B+22.6%
Stock-Based Comp

$89.9M

Previous: $57.2M+57.2%

Revenue & EPS history

Zscaler · Revenue · Quarterly

$231M

Q1 2022+61.7%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

For the second quarter of fiscal 2022, Zscaler expects total revenue of $240 million to $242 million and non-GAAP net income per share of approximately $0.11. For the full year fiscal 2022, the company expects total revenue of $1.00 billion to $1.01 billion and calculated billings of $1.300 billion to $1.305 billion.

Tailwinds

  • Total revenue of $240 million to $242 million for Q2 2022.
  • Non-GAAP income from operations of $20 million to $21 million for Q2 2022.
  • Non-GAAP net income per share of approximately $0.11 for Q2 2022.
  • Total revenue of $1.00 billion to $1.01 billion for fiscal year 2022.
  • Calculated billings of $1.300 billion to $1.305 billion for fiscal year 2022.

Headwinds

  • Non-GAAP income from operations of $90 million to $93 million for fiscal year 2022.
  • Non-GAAP net income per share of $0.50 to $0.52 for fiscal year 2022.
  • Forward-looking statements are subject to risks and uncertainties.
  • Actual results may differ materially from the forward-looking statements.
  • Guidance excludes certain items that are out of the company's control or cannot be reasonably predicted.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+2.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.6%

Avg return

30 days after

41%

13 / 32 earnings

Positive

+31.6%

Q3 2020

Best reaction

-21.4%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-3.0%-6.7%-20.4%
Q1 2026-6.8%-16.0%-20.4%
Q4 2025-1.5%+2.6%+11.2%
Q3 2025+10.0%+18.2%+25.6%
Q2 2025+2.9%+1.5%-11.1%
Q1 2025-3.8%+2.6%-12.7%
Q4 2024-21.4%-21.6%-15.2%
Q3 2024+3.4%+2.9%+16.9%
Q2 2024-7.6%-13.0%-18.8%
Q1 2024+0.4%+2.6%+16.5%
Q4 2023-0.0%+1.5%-3.2%
Q3 2023+5.1%+12.9%+8.0%
Q2 2023-7.2%-8.2%-9.0%
Q1 2023-3.3%-13.1%-16.1%
Q4 2022+27.3%+22.7%+15.2%
Q3 2022+20.7%+15.5%+28.8%
Q2 2022-7.3%+3.5%-3.8%
Q1 2022-10.6%-12.0%-8.8%
Q4 2021-3.6%-1.7%-5.0%
Q3 2021+11.4%+11.4%+25.9%
Q2 2021-1.3%-2.5%-18.3%
Q1 2021+22.4%+17.4%+31.7%
Q4 2020-0.4%-2.3%+14.1%
Q3 2020+31.6%+42.5%+42.2%
Q2 2020-16.4%-22.6%-17.7%
Q1 2020-2.4%-8.6%-7.3%
Q4 2019-19.9%-23.4%-23.7%
Q3 2019-3.5%+1.1%+7.7%
Q2 2019+19.4%+13.4%+39.8%
Q1 2019+9.9%+3.2%+0.5%
Q4 2018-5.4%+3.4%-16.3%
Q3 2018+25.4%+36.9%+26.2%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2016
Q1 2016
Q4 2016
Q3 2016

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