NASDAQ$ZS

Zscaler Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Delivered strong Q3 2021 financial results with revenue growth accelerating and free cash flow reaching a new record.

Zscaler's Q3 2021 financial results showed strong growth, with revenue increasing by 60% year-over-year to $176.4 million. The company's calculated billings grew by 71% year-over-year to $225.0 million, and free cash flow reached a new record. However, the GAAP net loss was $58.5 million, compared to a net loss of $19.3 million in the same quarter of the previous year.

  • Revenue grew 60% year-over-year to $176.4 million.
  • Calculated billings grew 71% year-over-year to $225.0 million.
  • GAAP net loss was $58.5 million, compared to a net loss of $19.3 million year-over-year.
  • Free cash flow reached a new record.

Headline financials

Total Revenue

$176M

Previous: $111M+59.6%
EPS (adj)

$0.15

Previous: $0.07+114.3%
Capital Expenditures

-$34.2M

Previous: -$24.8M-38.0%
Free Cash Flow

$123M

Previous: $22.9M+437.8%
Net Income

-$58.5M

Previous: -$19.3M-202.3%
Operating Income

-$43.9M

Previous: -$20.5M-113.8%
Gross Profit

$137M

Previous: $85.9M+59.9%
Cash & Equivalents

$107M

Previous: $125M-14.4%
Total Assets

$2.06B

No prior period
Stock-Based Comp

$60M

No prior period

Revenue & EPS history

Zscaler · Revenue · Quarterly

$176M

Q3 2021+59.6%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

For the fourth quarter of fiscal 2021, Zscaler expects total revenue of $185 million to $187 million and non-GAAP net income per share of approximately $0.08 to $0.09. For the full year fiscal 2021, the company expects total revenue of $660 million to $664 million and calculated billings of $878 million to $880 million.

Tailwinds

  • Total revenue of $185 million to $187 million for Q4 2021.
  • Non-GAAP income from operations of $13.5 million to $14.5 million for Q4 2021.
  • Non-GAAP net income per share of approximately $0.08 to $0.09 for Q4 2021.
  • Total revenue of $660 million to $664 million for full year fiscal 2021.
  • Calculated billings of $878 million to $880 million for full year fiscal 2021.

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 Q3 2021

Historical avgQ3 2021

+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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