March 2, 2023 – Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its second quarter of fiscal year 2023, ended January 31, 2023.
Zscaler, Inc. (Nasdaq: ZS) reported fiscal Q2 non-GAAP net income per diluted share was $0.37, Analysts polled by Capital IQ expected a normalized EPS of $0.29 a share.
Revenue for the quarter ended Jan. 31 was $387.6 million,Analysts surveyed by Capital IQ expected $364.8 million.
For Q3, the company expects revenue of $396 million to $398 million and non-GAAP EPS of about $0.39. Analysts polled by Capital IQ expected $387.5 million in revenue and a normalized EPS of $0.31.
For fiscal 2023, it expects revenue of $1.558 billion to $1.563 billion and non-GAAP EPS of $1.52 to $1.53. Analysts polled by Capital IQ expected $1.53 billion in revenue and a normalized EPS of $1.22.
Second Quarter Fiscal 2023 Financial Highlights
Revenue: $387.6 million, an increase of 52% year-over-year.
Income (loss) from operations: GAAP loss from operations was $65.2 million, or 17% of revenue, compared to $83.9 million, or 33% of revenue, in the second quarter of fiscal 2022. Non-GAAP income from operations was $48.8 million, or 13% of revenue, compared to $22.3 million, or 9% of revenue, in the second quarter of fiscal 2022.
Net income (loss): GAAP net loss was $57.5 million, compared to $100.4 million in the second quarter of fiscal 2022. Non-GAAP net income was $57.6 million, compared to $19.2 million in the second quarter of fiscal 2022.
Net income (loss) per share: GAAP net loss per share was $0.40, compared to $0.71 in the second quarter of fiscal 2022. Non-GAAP net income per share was $0.37, compared to $0.13 in the second quarter of fiscal 2022.
Cash flow: Cash provided by operations was $89.5 million, or 23% of revenue, compared to $48.3 million, or 19% of revenue, in the second quarter of fiscal 2022. Free cash flow was $62.8 million, or 16% of revenue, compared to $29.4 million, or 12% of revenue, in the second quarter of fiscal 2022.
Deferred revenue: $1,111.9 million as of January 31, 2023, an increase of 46% year-over-year.
Cash, cash equivalents and short-term investments: $1,905.3 million as of January 31, 2023, an increase of $174.0 million from July 31, 2022.
Financial Outlook
For the third quarter of fiscal 2023, we expect: Total revenue of $396 million to $398 million，Non-GAAP income from operations of $55 million to $56 million ，Non-GAAP net income per share of approximately $0.39。
For the full year fiscal 2023, we expect: Total revenue of approximately $1.558 billion to $1.563 billion，Calculated billings of $1.935 billion to $1.945 billion，Non-GAAP income from operations of $213 million to $215 million，Non-GAAP net income per share of $1.52 to $1.53。
ZSCALER, INC.Condensed Consolidated Statements of Operations
About Zscaler
Zscaler (Nasdaq: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 150 data centers globally, the SSE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.