Q3 21 EPS
$0.15
BEAT +114.29%
Est. $0.07
Q3 21 Revenue
$176.4M
BEAT +7.75%
Est. $163.7M
vs S&P Since Q3 21
-97.2%
TRAILING MARKET
ZS -24.5% vs S&P +72.7%
Market Reaction
Did ZS Beat Earnings? Q3 2021 Results
Zscaler delivered a standout third quarter of fiscal 2021, posting non-GAAP EPS of $0.15 against a consensus estimate of $0.07, a beat of 114.29%, while revenue climbed 59.6% year-over-year to $176.40 million, ahead of the $163.71 million Wall Street… Read more Zscaler delivered a standout third quarter of fiscal 2021, posting non-GAAP EPS of $0.15 against a consensus estimate of $0.07, a beat of 114.29%, while revenue climbed 59.6% year-over-year to $176.40 million, ahead of the $163.71 million Wall Street had expected. The primary engine behind the results was accelerating enterprise adoption of its Zero Trust Exchange platform, with calculated billings surging 71% year-over-year to $225.02 million and free cash flow expanding sharply to $55.78 million, representing a 32% margin compared to just 8% a year ago. Non-GAAP operating margin widened to 13% from 9% in the prior-year period, reflecting growing leverage in the subscription model. The company also announced plans to acquire deception technology specialist Smokescreen Technologies, adding active defense capabilities against ransomware to its security portfolio. Looking ahead, Zscaler raised its full-year fiscal 2021 revenue guidance to $660 million to $664 million, with fourth-quarter revenue expected in the range of $185 million to $187 million.
Key Takeaways
- • Revenue growth accelerated to 60% year-over-year
- • Calculated billings grew 71% year-over-year to $225.0 million
- • Deferred revenue grew 65% year-over-year to $495.4 million
- • Free cash flow margin expanded to 32% from 8% year-over-year
- • Non-GAAP operating margin expanded to 13% from 9% year-over-year
- • Work-from-anywhere economy driving zero trust adoption
ZS YoY Financials
Q3 2021 vs Q3 2020, source: SEC Filings
“We delivered outstanding results for the third quarter, with revenue growth accelerating to 60% year over year and free cash flow reaching a new record. Our Zero Trust Exchange platform is helping customers realize their digital transformation goals and architect for the new normal of the work-from-anywhere economy.”
— Jay Chaudhry, Q3 2021 Earnings Press Release
ZS Earnings Trends
ZS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ZS EPS Trend
Earnings per share: estimate vs actual
ZS Revenue Trend
Quarterly revenue: estimate vs actual
ZS Quarterly Results
11 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.90 | $1.01 | +12.56% | $815.8M | +2.11% |
| Q1 26 BEAT | $0.86 | $0.96 | +11.42% | $788.1M | +1.84% |
| Q4 25 BEAT FY | $0.80 | $0.89 | +11.25% | $719.2M | +1.71% |
| FY Full Year | $3.19 | $3.28 | +2.73% | $2.67B | +0.45% |
| Q3 25 BEAT | $0.76 | $0.84 | +10.77% | $678.0M | +1.64% |
| Q4 24 BEAT FY | $0.69 | $0.88 | +27.54% | $592.9M | +4.39% |
| FY Full Year | — | $3.19 | — | $2.17B | — |
| Q3 23 BEAT | $0.42 | $0.48 | +14.29% | $418.8M | +0.76% |
| Q2 23 | $0.29 | — | — | — | — |
| Q1 23 BEAT | $0.26 | $0.29 | +11.54% | $355.5M | +3.39% |
| Q4 22 | $0.00 | — | — | — | — |
| Q2 22 BEAT | $0.11 | $0.13 | +18.18% | $255.6M | +5.80% |
| Q3 21 BEAT | $0.07 | $0.15 | +114.29% | $176.4M | +7.75% |