Q4 24 EPS

$0.88

BEAT +27.54%

Est. $0.69

Q4 24 Revenue

$592.9M

BEAT +4.39%

Est. $567.9M

vs S&P Since Q4 24

-45.2%

TRAILING MARKET

ZS -13.9% vs S&P +31.4%

Full Year 2024 Results

FY 24 EPS

$3.19

FY 24 Revenue

$2.17B

Market Reaction

Did ZS Beat Earnings? Q4 2024 Results

Zscaler delivered a strong finish to fiscal 2024, posting Q4 revenue of $592.87 million, up 30.3% year over year and ahead of the $567.93 million consensus, while non-GAAP EPS of $0.88 beat the $0.69 estimate by 27.54%. The results were driven in lar… Read more Zscaler delivered a strong finish to fiscal 2024, posting Q4 revenue of $592.87 million, up 30.3% year over year and ahead of the $567.93 million consensus, while non-GAAP EPS of $0.88 beat the $0.69 estimate by 27.54%. The results were driven in large part by accelerating demand visibility, with calculated billings rising 27% to $910.83 million and deferred revenue climbing 32% to $1.89 billion, underscoring the durability of the company's zero-trust security platform. Non-GAAP operating income expanded to $127.54 million, representing a 22% margin compared to 19% a year earlier, and free cash flow reached $136.32 million. For the full fiscal year, revenue totaled $2.17 billion, up 34%. Looking ahead, Zscaler guided Q1 FY2025 revenue of $604 million to $606 million and full-year revenue of approximately $2.60 billion to $2.62 billion, with full-year non-GAAP EPS of $2.81 to $2.87 under a newly adopted 23% long-term non-GAAP tax rate.

Key Takeaways

  • 30% year-over-year revenue growth driven by customer adoption of the Zero Trust Exchange platform
  • 27% year-over-year growth in calculated billings to $910.8 million
  • 32% year-over-year growth in deferred revenue to $1,895.0 million indicating strong future revenue visibility
  • Non-GAAP operating margin expansion to 22% from 19% year-over-year
  • Free cash flow margin of 23% in Q4, up from 22% year-over-year
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ZS YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

“We ended a successful Fiscal 2024 with Q4 results exceeding the high end of our guidance across all metrics. Customers adoption of our Zero Trust Exchange platform is stronger than ever, and I'm thrilled to share that we have achieved a major milestone with our cloud platform surpassing over half a Trillion transactions daily. I'm excited about the year ahead, as we enter Fiscal 2025 with a strong go-to-market machine and a high pace of innovation.”

— Jay Chaudhry, Q4 2024 Earnings Press Release