The earnings call was predominantly positive, marked by strong revenue growth, record profitability, and significant progress in AI adoption and federal market expansion. Despite some challenges, such as customer scrutiny on large deals and slight pressure on gross margins, the overall outlook remains robust with promising growth in emerging products.

Company Guidance

During the Zscaler Q1 2025 earnings call, the company highlighted several key metrics that underscored its strong performance and future outlook. Revenue for the quarter rose by 26% year-over-year, driven by a 30% increase in bookings and robust customer demand for its Zero Trust Exchange platform and AI solutions. The company reported a billings growth of 13%, significantly outperforming the average growth rate of traditional network security vendors by over 10 percentage points. Operating profit surged by 50% year-over-year, reaching new records with a 21% operating margin and a 46% free cash flow margin. Zscaler's strategic focus on AI innovations and Zero Trust security has positioned it among the top SaaS companies, achieving a "rule of 70" in terms of combined revenue growth and free cash flow margin. Additionally, the company expanded its customer base, with over 35% of Global 2000 and about 45% of Fortune 500 companies now secured by Zscaler. The call also revealed that emerging products, including AI analytics and Zero Trust branch solutions, are growing twice as fast as core products, contributing significantly to large deal wins.

Strong Revenue Growth

Revenue grew 26% year-over-year to $628 million, with bookings growth accelerating to over 30%.

Record Operating and Free Cash Flow Margins

New Q1 records for operating margin at 21% and free cash flow margin at 46%, highlighting strong profitability.

Increasing AI Adoption

Significant customer wins with AI-powered data protection solutions, contributing to a 7-figure ACV deal with a Global 2000 technology services customer.

Expansion in Federal Market

Added a new cabinet-level agency, now serving 14 of 15 cabinet-level agencies, indicating strong growth opportunities in the federal vertical.

Emerging Products Growth

Emerging Products ARR is growing twice as fast as core products, with significant deals in Zero Trust SD-WAN and workload protection.

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Zscaler (ZS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

ZS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 05, 2018	2018 (Q4)	- / -0.01	-0.111	90.99% (+0.10)	―	―
Dec 04, 2018	2019 (Q1)	- / 0.01	-0.07	114.29% (+0.08)	―	―
Feb 28, 2019	2019 (Q2)	- / 0.09	-0.03	400.00% (+0.12)	―	―
May 30, 2019	2019 (Q3)	- / 0.05	-0.04	225.00% (+0.09)	―	―
Sep 10, 2019	2019 (Q4)	- / 0.07	-0.01	800.00% (+0.08)	―	―
Dec 03, 2019	2020 (Q1)	- / 0.03	0.01	200.00% (+0.02)	―	―
Feb 20, 2020	2020 (Q2)	- / 0.09	0.09	0.00% (0.00)	―	―
May 28, 2020	2020 (Q3)	- / 0.07	0.05	40.00% (+0.02)	―	―
Sep 09, 2020	2020 (Q4)	- / 0.05	0.07	-28.57% (-0.02)	―	―
Dec 02, 2020	2021 (Q1)	- / 0.14	0.03	366.67% (+0.11)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ZS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 02, 2024	$208.51	$198.64	-4.73%
Sep 03, 2024	$193.19	$157.13	-18.67%
May 30, 2024	$156.65	$169.96	+8.50%
Feb 29, 2024	$241.97	$219.23	-9.40%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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