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Zscaler (ZS)
NASDAQ:ZS
Earnings Data
Report Date
May 29, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
0.76Last Year’s EPS
0.88Same Quarter Last Year
Strong Buy
Based on 30 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 05, 2025
|% Change Since: 4.45%
|Next Earnings Date:May 29, 2025
Earnings Call Sentiment|Positive
Zscaler demonstrated strong growth in revenue, ARR, and profitability, with significant progress in its Zero Trust Everywhere initiative and AI product offerings. Despite some macroeconomic challenges and variability in net retention, the company's strategic partnerships and expanding product suite position it well for future growth.Company Guidance
During Zscaler's second quarter fiscal year 2025 earnings call, the company reported significant growth metrics, exceeding expectations in several key areas. Revenue increased by 23% year-over-year, driven by a 23% rise in annual recurring revenue (ARR) to over $2.7 billion, and a net retention rate (NRR) improvement to 115%. The company's operating profit surged by 36%, resulting in a 2 percentage point increase in operating margin to nearly 22%, while free cash flow margin reached a record 22% for the quarter. Zscaler's expansion aims to achieve $3 billion or more in ARR by the fiscal year's end. Additionally, the company highlighted the success of its Zero Trust Everywhere initiative, which has already attracted over 130 enterprises, with plans to triple that figure within 18 months. The company's push into AI-powered solutions and data protection also saw substantial growth, with net new ACV in data protection increasing by over 40% year-over-year.Strong Revenue and Billings Growth
Revenue grew by 23% year-over-year, reaching $648 million, with billings increasing by 18% year-over-year to $743 million.
Annual Recurring Revenue and Net Retention Rate
ARR grew 23% year-over-year to over $2.7 billion, and net retention rate improved to 115%.
Profitability and Free Cash Flow Margin
Operating profit grew by 36%, improving operating margin by 2 percentage points to nearly 22%. Free cash flow margin was a record 22%.
Zero Trust Everywhere Initiative
Over 130 enterprises have adopted Zero Trust Everywhere, with plans to triple this number in the next 18 months.
Expansion in Data Protection
Data protection pillar experienced over 40% year-over-year growth in net new ACV, with significant upsell deals.
AI Product Growth
AI-powered products like ZDX Advance Plus saw bookings grow by over 45% to nearly $50 million.
Strong GSI Partnerships
Global system integrators played a critical role in closing several deals, including a 7-figure deal with a Global-2000 insurance customer.
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ZS Earnings History
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 |
|---|---|---|---|
| Mar 05, 2025 | $196.45 | $202.16 | +2.91% |
| 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% |
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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FAQ
When does Zscaler (ZS) report earnings?
Zscaler (ZS) is schdueled to report earning on May 29, 2025, TBA Not Confirmed.
What is Zscaler (ZS) earnings time?
Zscaler (ZS) earnings time is at May 29, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ZS EPS forecast?
ZS EPS forecast for the fiscal quarter 2025 (Q3) is 0.76.
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