Zscaler’s Fiscal 2024 Closes With Strong Financial Performance And Strategic Advancements

$ZS

Zscaler, Inc. (NASDAQ: ZS), a leader in cloud security, has reported impressive financial results for the fourth quarter and fiscal year ending July 31, 2024. The firm achieved a 30% year-over-year increase in fourth-quarter revenue, reaching $592.9 million, and a 34% rise in annual revenue, totaling $2.167 billion.

For the fourth quarter, calculated billings grew by 27% year-over-year to $910.8 million, and deferred revenue increased by 32% to $1.895 billion. Although the company reported a GAAP net loss of $14.9 million for the quarter—an improvement from the $30.7 million loss the previous year—its non-GAAP net income rose to $140.6 million, up from $100.9 million.

Operational cash flow was strong at $203.6 million, or 34% of revenue, while free cash flow increased to $136.3 million, representing 23% of revenue. As of July 31, 2024, cash reserves totaled $2.409 billion, reflecting a $309.4 million increase over the previous year.

CEO Jay Chaudhry highlighted the significant adoption of the Zero Trust Exchange platform, which now processes over half a trillion transactions daily. The outlook for the coming year includes continued innovation and market expansion.

The company also released the Zscaler ThreatLabz 2024 Ransomware Report, which revealed an 18% rise in ransomware attacks year-over-year. Recent advancements include new AI Data Protection features and a partnership with Google Chrome Enterprise to enhance secure access for enterprise users.

For fiscal 2025, Zscaler forecasts first-quarter revenue between $604 million and $606 million, with non-GAAP income from operations expected between $114 million and $116 million. Full-year revenue is projected to range from $2.60 billion to $2.62 billion, with calculated billings estimated between $3.110 billion and $3.135 billion.

These results and forward-looking projections reflect the firm’s strong market position and commitment to advancing cloud security, though it acknowledges potential risks such as macroeconomic conditions and market competition.

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