Zscaler reports strong Q4 earnings with $592.9 million revenue

Zscaler Inc reported its fiscal fourth-quarter results after the market closed on Tuesday, showcasing a revenue of $592.9 million, which surpassed the consensus estimate of $567.933 million. The company also achieved adjusted earnings of 88 cents per share, exceeding analyst expectations of 69 cents. Year-over-year, total revenue increased by 30%, while deferred revenue rose by 32% to $1.895 billion. Calculated billings also saw a growth of 27% year-over-year, reaching $910.8 million. In terms of cash flow, Zscaler generated $203.6 million from operations in the quarter, with free cash flow amounting to $136.3 million, a significant increase from $101.3 million in the same quarter last year. The company ended the quarter with approximately $2.41 billion in cash, equivalents, and short-term investments, indicating a strong financial position. Jay Chaudhry, the chairman and CEO, expressed optimism about the future, stating that the company concluded a successful fiscal year with results that exceeded guidance across all metrics. He highlighted the robust go-to-market strategy and a high pace of innovation as key drivers for the upcoming fiscal year. Looking ahead, Zscaler anticipates first-quarter revenue between $604 million and $606 million, with adjusted earnings projected at 62 to 63 cents per share. For the full fiscal year 2025, the company expects revenue to be around $2.6 billion to $2.62 billion, alongside adjusted earnings of $2.81 to $2.87 per share. Despite these positive results, shares fell by 5.66% in after-hours trading, reflecting market reactions to the earnings guidance.