NASDAQ$ZS

Zscaler Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced strong revenue growth and record operating profits.

Zscaler's Q4 2023 earnings showcase robust top-line growth with revenue increasing by 43% year-over-year to $455.0 million and record operating profits. The company's annual recurring revenue surpassed the $2 billion milestone, doubling in less than two years.

  • Revenue grew 43% year-over-year to $455.0 million.
  • Calculated billings grew 38% year-over-year to $719.3 million.
  • GAAP net loss was $30.7 million, an improvement from the $97.7 million loss in the same quarter last year.
  • Non-GAAP net income was $100.9 million, significantly up from $36.4 million in the fourth quarter of fiscal 2022.

Headline financials

Total Revenue

$455M

Previous: $318M+43.1%
EPS (adj)

$0.64

Previous: $0.25+156.0%
Capital Expenditures

$27.1M

Previous: $21.3M+27.4%
Free Cash Flow

$101M

Previous: $74.8M+35.5%
Net Income

-$30.7M

Previous: -$97.7M+68.6%
Operating Income

-$44.6M

Previous: -$82.5M+46.0%
Gross Profit

$352M

Previous: $250M+41.1%
Cash & Equivalents

$1.26B

Previous: $1.01B+24.6%
Total Assets

$3.61B

Previous: $2.83B+27.4%
Stock-Based Comp

$122M

Previous: $115M+6.3%

Revenue & EPS history

Zscaler · Revenue · Quarterly

$455M

Q4 2023+43.1%vs Q4 2022
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

For the first quarter of fiscal 2024, Zscaler expects revenue between $472 million and $474 million, non-GAAP income from operations between $70 million and $72 million, and non-GAAP net income per share between $0.48 and $0.49.

Tailwinds

  • Revenue of $472 million to $474 million
  • Non-GAAP income from operations of $70 million to $72 million
  • Non-GAAP net income per share of approximately $0.48 to $0.49
  • Assuming approximately 159 million fully diluted shares outstanding
  • Using the 'if-converted' method for convertible senior notes

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 2023

Historical avgQ4 2023

+1.5%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.6%

Avg return

30 days after

39%

13 / 33 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 2026-15.8%+2.9%
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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