Fri, Jun 7, 8:20 PM (92 days ago)
Zscaler, Inc.'s latest quarterly report for the period ending April 30, 2024, highlights a strong financial performance with significant growth in revenue and improvements in key financial metrics despite macroeconomic challenges. Revenue increased by 32% year-over-year to $553.2 million, driven by both new customer acquisitions and expanded usage by existing customers. The company reported a net income of $19.1 million, a notable improvement from a net loss of $46.0 million in the same period last year. Gross margin improved to 79%, up from 77%, primarily due to economies of scale and changes in the estimated useful life of servers and networking equipment. Operating expenses also rose, with sales and marketing costs increasing by 11% and research and development expenses up by 35%, reflecting the company's continued investment in growth and innovation. General and administrative expenses grew by 16%. Despite these increases, the company's operating loss narrowed significantly. Cash flow from operations was strong at $173.4 million, contributing to a free cash flow of $123.1 million, up from $73.9 million in the previous year. The company also completed acquisitions of Airgap Networks Inc. and Avalor Technologies Ltd., integrating new technologies and expanding its market presence. Looking forward, Zscaler expects to continue its growth trajectory while closely monitoring economic conditions and potential impacts on customer spending.