Thu, Sep 12, 8:03 PM (99 days ago)
Zscaler, Inc. reported significant growth in fiscal 2024, with revenue increasing to $2,167.8 million, a 34% rise from $1,617.0 million in fiscal 2023. However, the company continued to experience net losses, totaling $57.7 million for the year, compared to $202.3 million in fiscal 2023. Operating expenses rose to $1,812.1 million, largely driven by increased sales and marketing efforts and research and development investments. The dollar-based net retention rate declined slightly to 115% from 121%, indicating a stable revenue base despite economic headwinds. The company holds substantial cash reserves of $2,409.7 million, primarily from subscription services, which constitute about 97% of total revenue. Zscaler's strategic focus remains on expanding its customer base, particularly within the Forbes Global 2000, and enhancing its cloud platform capabilities. Risks include ongoing macroeconomic challenges, intense competition, and potential impacts from geopolitical events. The adoption of new accounting standards has streamlined the reporting of its convertible senior notes, which may affect future financial metrics. Overall, Zscaler is positioned for growth but must navigate significant operational and market risks.