Zscaler Q4 Earnings: Revenue Beat, EPS Beat, Customer Adoption 'Stronger Than Ever,' Shares Slide

Zscaler Inc ZS reported financial results for its fourth quarter after the market close on Tuesday. Here’s a look at the key metrics from the quarter.

Q4 Results: Zscaler reported fiscal fourth-quarter revenue of $592.9 million, beating the consensus estimate of $567.933 million. The cybersecurity company reported adjusted earnings of 88 cents per share, beating analyst estimates of 69 cents per share, according to Benzinga Pro.

Total revenue was up 30% on a year-over-year basis. Deferred revenue increased 32% year-over-year to $1.895 billion. Calculated billings grew 27% year-over-year to $910.8 million.

Cash flow from operations totaled $203.6 million in the quarter. The company generated $136.3 million of free cash flow in the fourth quarter, up from $101.3 million in the prior year's quarter. Zscaler ended the quarter with approximately $2.41 billion in cash, equivalents and short-term investments.

“We ended a successful Fiscal 2024 with Q4 results exceeding the high end of our guidance across all metrics,” said Jay Chaudhry, chairman and CEO of Zscaler.

“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.”

See Also: 4 Reasons Why Hewlett Packard Investors Should Be Positive Into Q3 Earnings: Analyst

Outlook: Zscaler expects fiscal first-quarter revenue to be in the range of $604 million to $606 million. The company sees first-quarter adjusted earnings of 62 cents to 63 cents per share.

Zscaler expects full-year 2025 revenue of approximately $2.6 billion to $2.62 billion. The company anticipates full-year adjusted earnings of $2.81 to $2.87 per share.

Shares appear to be selling off in reaction to the company’s earnings guidance. Management will hold a conference call at 4:30 p.m. ET to further discuss the quarter.

ZS Price Action: Zscaler shares were down 5.66% in Tuesday’s after-hours session, trading at $182 at the time of publication Tuesday, per Benzinga Pro.

Photo: Shutterstock.

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