NASDAQ$ZS

Zscaler Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong fourth-quarter results with significant revenue and billings growth, while maintaining operational efficiency.

Zscaler reported a strong fourth quarter for fiscal year 2022, with a 61% increase in revenue and a 57% increase in calculated billings year-over-year. The company's focus on its Zero Trust Exchange platform continues to drive demand, despite an uncertain macroeconomic environment.

  • Revenue grew 61% year-over-year to $318.1 million.
  • Calculated billings grew 57% year-over-year to $520.4 million.
  • GAAP net loss was $97.7 million, compared to a net loss of $81.0 million year-over-year.
  • Non-GAAP net income was $36.4 million, compared to $20.3 million in the same period last year.

Headline financials

Total Revenue

$318M

Previous: $197M+61.4%
EPS (adj)

$0.25

Previous: $0.14+78.6%
Capital Expenditures

$21.3M

Previous: $14M+52.3%
Free Cash Flow

$74.8M

Previous: $27.7M+169.9%
Net Income

-$97.7M

Previous: -$81M-20.6%
Operating Income

-$82.5M

Previous: -$67.4M-22.5%
Gross Profit

$250M

Previous: $152M+64.7%
Cash & Equivalents

$1.01B

Previous: $276M+267.2%
Total Assets

$2.83B

Previous: $2.26B+25.5%
Stock-Based Comp

$115M

Previous: $80M+43.5%

Revenue & EPS history

Zscaler · Revenue · Quarterly

$318M

Q4 2022+61.4%vs Q4 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

For the first quarter of fiscal 2023, Zscaler expects total revenue of $339 million to $341 million and non-GAAP income from operations of $37 million to $38 million. For the full year fiscal 2023, the company expects total revenue of approximately $1.49 billion to $1.50 billion and calculated billings of $1.92 billion to $1.94 billion.

Tailwinds

  • Total revenue of $339 million to $341 million for Q1 2023.
  • Non-GAAP income from operations of $37 million to $38 million for Q1 2023.
  • Non-GAAP net income per share of approximately $0.26 for Q1 2023.
  • Total revenue of approximately $1.49 billion to $1.50 billion for FY 2023.
  • Calculated billings of $1.92 billion to $1.94 billion for FY 2023.

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 Q4 2022

Historical avgQ4 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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