NASDAQ$ZS

Zscaler Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Zscaler's financial performance in Q2 2023 was marked by revenue growth and increased profitability.

Zscaler announced strong Q2 fiscal year 2023 results, with revenue exceeding guidance and demonstrating operating leverage. Revenue grew 52% year-over-year to $387.6 million, and the company saw significant increases in both GAAP and non-GAAP net income.

  • Revenue increased by 52% year-over-year, reaching $387.6 million.
  • Calculated billings grew 34% year-over-year to $493.8 million.
  • GAAP net loss improved to $57.5 million compared to a net loss of $100.4 million in the same quarter last year.
  • Non-GAAP net income was $57.6 million, up from $19.2 million year-over-year.

Headline financials

Total Revenue

$388M

Previous: $256M+51.7%
EPS (adj)

$0.37

Previous: $0.13+184.6%
Capital Expenditures

-$43.9M

Previous: -$20.4M-114.7%
Free Cash Flow

$174M

Previous: $121M+43.7%
Net Income

-$57.5M

Previous: -$100M+42.8%
Operating Income

-$65.2M

Previous: -$83.9M+22.3%
Gross Profit

$300M

Previous: $198M+51.7%
Cash & Equivalents

$1.26B

Previous: $410M+206.7%
Total Assets

$3.04B

Previous: $2.42B+25.5%
Stock-Based Comp

$110M

Previous: $99M+10.9%

Revenue & EPS history

Zscaler · Revenue · Quarterly

$388M

Q2 2023+51.7%vs Q2 2022
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

For the third quarter of fiscal 2023, Zscaler expects total revenue of $396 million to $398 million and non-GAAP net income per share of approximately $0.39. For the full year fiscal 2023, the company expects total revenue of approximately $1.558 billion to $1.563 billion.

Tailwinds

  • Total revenue is expected to be between $396 million and $398 million for Q3 2023.
  • Non-GAAP income from operations is projected to be between $55 million and $56 million for Q3 2023.
  • Non-GAAP net income per share is expected to be approximately $0.39 for Q3 2023.
  • Total revenue is projected to be approximately $1.558 billion to $1.563 billion for the full year fiscal 2023.
  • Calculated billings are expected to be $1.935 billion to $1.945 billion for the full year fiscal 2023.

Headwinds

  • Guidance for non-GAAP income from operations excludes stock-based compensation expense.
  • Guidance excludes amortization expense of acquired intangible assets.
  • Guidance excludes amortization of debt discount and issuance costs.
  • The company has not reconciled its expectations to non-GAAP income from operations.
  • The company has not reconciled its expectations to non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of their 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 Q2 2023

Historical avgQ2 2023

+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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