Q3 23 EPS
$0.48
BEAT +14.29%
Est. $0.42
Q3 23 Revenue
$418.8M
BEAT +0.76%
Est. $415.7M
vs S&P Since Q3 23
-63.6%
TRAILING MARKET
ZS +5.5% vs S&P +69.1%
Market Reaction
Did ZS Beat Earnings? Q3 2023 Results
Zscaler posted a strong fiscal third quarter, with non-GAAP earnings per share of $0.48 beating the $0.42 consensus estimate by 14.29%, while revenue of $418.80 million edged past the $415.66 million consensus and grew 46.0% year over year. The headl… Read more Zscaler posted a strong fiscal third quarter, with non-GAAP earnings per share of $0.48 beating the $0.42 consensus estimate by 14.29%, while revenue of $418.80 million edged past the $415.66 million consensus and grew 46.0% year over year. The headline driver behind the profitability improvement was a significant expansion in non-GAAP operating margin, which widened to 15% from 9% in the year-ago quarter as revenue leverage outpaced growth in operating expenses, helping lift free cash flow to $73.89 million. Calculated billings rose 40% to $482.29 million and deferred revenue climbed 44% to $1.18 billion, offering visibility into future revenue momentum. The company also raised its full-year fiscal 2023 revenue outlook to approximately $1.59 billion and increased its non-GAAP EPS guidance to $1.63 to $1.64, while projecting fourth-quarter revenue of $429.00 million to $431.00 million and non-GAAP EPS of roughly $0.49, signaling that management expects the current growth trajectory to continue into the final quarter.
Key Takeaways
- • 46% year-over-year revenue growth driven by customer adoption of Zero Trust security platform across all sectors globally
- • 135% year-over-year non-GAAP operating profit growth
- • 40% year-over-year calculated billings growth to $482.3 million
- • 44% year-over-year deferred revenue growth to $1,175.4 million
ZS YoY Financials
Q3 2023 vs Q3 2022, source: SEC Filings
“The business value delivered by our Zero Trust security platform is continuing to drive customer adoption across all sectors globally, leading to another quarter of strong growth. On a year-over-year basis, we delivered 46% revenue growth, 40% billings growth, and 135% operating profit growth, all exceeding our guidance from last quarter.”
— Jay Chaudhry, Q3 2023 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% |