NASDAQ$ZS

Zscaler Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Zscaler's financial performance was strong, marked by significant revenue growth and progress in go-to-market initiatives.

Zscaler reported a robust second quarter for fiscal year 2020, with revenue reaching $101.3 million, a 36% increase year-over-year. The company's calculated billings grew by 18% to $135.4 million. While GAAP net loss was $29.2 million, non-GAAP net income stood at $12.0 million.

  • Revenue increased by 36% year-over-year, reaching $101.3 million.
  • Calculated billings grew by 18% year-over-year, totaling $135.4 million.
  • GAAP net loss was $29.2 million, while non-GAAP net income was $12.0 million.
  • Deferred revenue increased by 36% year-over-year, reaching $280.0 million.

Headline financials

Total Revenue

$101M

Previous: $74.3M+36.3%
EPS (adj)

$0.09

Previous: $0.09+0.0%
Capital Expenditures

-$15.1M

Previous: -$8.61M-75.4%
Free Cash Flow

$11.8M

Previous: $18.1M-35.1%
Net Income

-$29.2M

Previous: -$3.56M-720.1%
Operating Income

-$30.3M

Previous: -$5.18M-484.3%
Gross Profit

$81M

Previous: $59M+37.3%
Cash & Equivalents

$76.5M

No prior period
Total Assets

$676M

No prior period

Revenue & EPS history

Zscaler · Revenue · Quarterly

$101M

Q2 2020+36.3%vs Q2 2019
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

For the third quarter of fiscal 2020, Zscaler anticipates total revenue between $105 million and $107 million, non-GAAP income from operations between $1 million and $3 million, and non-GAAP earnings per share between $0.01 and $0.03. For the full fiscal year 2020, the company projects total revenue between $414 million and $417 million, calculated billings between $512 million and $517 million, non-GAAP income from operations between $16 million and $18 million, and non-GAAP earnings per share between $0.14 and $0.16.

Tailwinds

  • Total revenue of $105 million to $107 million
  • Non-GAAP income from operations of $1 million to $3 million
  • Non-GAAP earnings per share of approximately $0.01 to $0.03
  • Total revenue of $414 million to $417 million
  • Calculated billings of $512 million to $517 million

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 Q2 2020

Historical avgQ2 2020

+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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