Q2 22 EPS

$0.13

BEAT +18.18%

Est. $0.11

Q2 22 Revenue

$255.6M

BEAT +5.80%

Est. $241.6M

vs S&P Since Q2 22

-102.3%

TRAILING MARKET

ZS -36.9% vs S&P +65.3%

Market Reaction

Did ZS Beat Earnings? Q2 2022 Results

Zscaler posted a convincing beat across the board in its fiscal second quarter of 2022, with revenue climbing 62.7% year-over-year to $255.56 million against a consensus estimate of $241.56 million, while non-GAAP earnings of $0.13 per diluted share … Read more Zscaler posted a convincing beat across the board in its fiscal second quarter of 2022, with revenue climbing 62.7% year-over-year to $255.56 million against a consensus estimate of $241.56 million, while non-GAAP earnings of $0.13 per diluted share cleared the $0.11 analyst estimate by 18.18%. The cybersecurity company's results were powered by accelerating enterprise adoption of its Zero Trust security platform, as organizations deepened digital transformation spending, a dynamic reflected in calculated billings surging 59% to $367.68 million and deferred revenue rising 70% to $759.93 million. Operating cash flow reached $48.26 million, or 19% of revenue, and the company closed the quarter with $1.62 billion in cash and short-term investments. Looking ahead, Zscaler raised its full-year fiscal 2022 revenue guidance to a range of $1.04 billion to $1.05 billion, with non-GAAP EPS expected between $0.54 and $0.56, while third-quarter revenue guidance of $270 million to $272 million signals continued confidence in sustained demand for its cloud-native security architecture.

Key Takeaways

  • Continued demand for Zero Trust security platform driven by enterprise digital transformation
  • Revenue growth rate reached highest level in three years
  • Surpassed $1 billion in annualized revenue
  • Calculated billings grew 59% year-over-year to $367.7 million
  • Deferred revenue grew 70% year-over-year to $759.9 million
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ZS YoY Financials

Q2 2022 vs Q2 2021, source: SEC Filings

“Driven by continued demand for our Zero Trust security platform, we delivered strong results for the second quarter, with our year-over-year revenue growth rate reaching its highest level in three years, even as we surpassed $1 billion in annualized revenue.”

— Jay Chaudhry, Q2 2022 Earnings Press Release