{"id":57906,"date":"2023-09-07T03:06:54","date_gmt":"2023-09-07T07:06:54","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/zscaler-nasdaqzs-exceeds-q4-expectations-stock-soars\/"},"modified":"2023-09-07T03:06:58","modified_gmt":"2023-09-07T07:06:58","slug":"zscaler-nasdaqzs-exceeds-q4-expectations-stock-soars","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=57906","title":{"rendered":"Zscaler (NASDAQ:ZS) Exceeds Q4 Expectations, Stock Soars"},"content":{"rendered":"<div>\n<div id=\"imgCarousel\" class=\"imgCarousel\">\n<p><span class=\"text\">Zscaler (NASDAQ:ZS) Exceeds Q4 Expectations, Stock Soars<\/span><br \/>\n<i class=\"imgGrad\"><\/i>\n<\/div>\n<p>Cloud security platform Zscaler (NASDAQ:)<br \/>\nreported Q4 FY2023 results topping analysts&#8217; expectations, with revenue up 43.1% year on year to $455 million. Guidance for next quarter&#8217;s revenue was also better than expected at $473 million at the midpoint, 1.72% above analysts&#8217; estimates. Turning to EPS, Zscaler made a non-GAAP profit of $0.64 per share, improving from its profit of $0.25 per share in the same quarter last year.<\/p>\n<p>Is now the time to buy Zscaler? Find out by reading the original article on StockStory.<\/p>\n<p>Zscaler (ZS) Q4 FY2023 Highlights:<\/p>\n<ul>\n<li><strong>Revenue:<\/strong> $455 million vs analyst estimates of $430.6 million (5.67% beat)<\/li>\n<li><strong>EPS (non-GAAP):<\/strong> $0.64 vs analyst estimates of $0.49 (30.1% beat)<\/li>\n<li><strong>Revenue Guidance for Q1 2024<\/strong> is $473 million at the midpoint, above analyst estimates of $465 million <\/li>\n<li>Management&#8217;s <strong>revenue guidance for<\/strong> the upcoming financial <strong>year 2024<\/strong> is $2.06 billion at the midpoint, in line with analyst expectations and implying 27.2% growth (vs 48.7% in FY2023)<\/li>\n<li><strong>Free Cash Flow<\/strong> of $101.3 million, up 37.1% from the previous quarter<\/li>\n<li><strong>Gross Margin (GAAP):<\/strong> 77.4%, down from 78.6% in the same quarter last year<\/li>\n<\/ul>\n<p>&#8220;We concluded our fiscal year with strong top line growth and record operating profits. In less than two years, we doubled our annual recurring revenue, surpassing the $2 billion milestone. With cyber security as a high priority, IT executives are modernizing their legacy network security with our zero-trust architecture,&#8221; said Jay Chaudhry, Chairman and CEO of Zscaler.<\/p>\n<p>After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry&#8217;s fifth venture, Zscaler (NASDAQ:ZS) offers software as a service that helps companies securely connect to applications and networks in the cloud.<\/p>\n<p>Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks. The migration of businesses to the cloud and employees working remotely in insecure environments is increasing demand modern cloud-based network security software, which offers better performance at lower cost than maintaining the traditional on-premise solutions, such as expensive specialized firewall hardware.<\/p>\n<p>Sales GrowthAs you can see below, Zscaler&#8217;s revenue growth has been exceptional over the last two years, growing from $197.1 million in Q4 FY2021 to $455 million this quarter.<\/p>\n<p>Unsurprisingly, this was another great quarter for Zscaler with revenue up 43.1% year on year. On top of that, its revenue increased $36.2 million quarter on quarter, a solid improvement from the $31.2 million increase in Q3 2023. This is a sign of slight acceleration of growth.<\/p>\n<p>Next quarter&#8217;s guidance suggests that Zscaler is expecting revenue to grow 33% year on year to $473 million, slowing down from the 54.2% year-on-year increase it recorded in the same quarter last year. For the upcoming financial year, management expects revenue to be $2.06 billion at the midpoint, growing 27.2% year on year compared to the 48.2% increase in FY2023.<\/p>\n<p>ProfitabilityWhat makes the software as a service business so attractive is that once the software is developed, it typically shouldn&#8217;t cost much to provide it as an ongoing service to customers.<br \/>\nZscaler&#8217;s gross profit margin, an important metric measuring how much money there&#8217;s left after paying for servers, licenses, technical support, and other necessary running expenses, was 77.4% in Q4.<\/p>\n<p>That means that for every $1 in revenue the company had $0.77 left to spend on developing new products, sales and marketing, and general administrative overhead. Zscaler&#8217;s impressive gross margin allows it to fund large investments in product and sales during periods of rapid growth and achieve profitability when reaching maturity. It&#8217;s also comforting to see its gross margin remain stable, indicating that Zscaler is controlling its costs and not under pressure from its competitors to lower prices.<\/p>\n<p>Key Takeaways from Zscaler&#8217;s Q4 Results<br \/>\nSporting a market capitalization of $23.1 billion, more than $2.1 billion in cash on hand, and positive free cash flow over the last 12 months, we believe that Zscaler is attractively positioned to invest in growth.<\/p>\n<p>This was an awesome &#8220;beat and raise&#8221; quarter with a lot to like and not a lot to pick on. We enjoyed seeing Zscaler exceed analysts&#8217; billings, revenue, non-GAAP operating profit, and free cash flow expectations this quarter. We were also glad that next quarter&#8217;s revenue and non-GAAP operating profit guidance both came in higher than Wall Street&#8217;s estimates. The one thing to potentially pick on is that its revenue guidance for next year suggests a deceleration in revenue, although profit margins are increasing. Overall, this quarter&#8217;s results seemed fairly positive and shareholders should feel optimistic. The stock is up 5.1% after reporting and currently trades at $171.1 per share.<\/p>\n<p><i>The author has no position in any of the stocks mentioned in this report.<\/i><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.investing.com\/news\/stock-market-news\/zscaler-nasdaqzs-exceeds-q4-expectations-stock-soars-3167985\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zscaler (NASDAQ:ZS) Exceeds Q4 Expectations, Stock Soars Cloud security platform Zscaler (NASDAQ:) reported Q4 FY2023 results topping analysts&#8217; expectations, with revenue up 43.1% year on year to $455 million. Guidance for next quarter&#8217;s revenue was also better than expected at $473 million at the midpoint, 1.72% above analysts&#8217; estimates. Turning to EPS, Zscaler made a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5122,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-57906","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Zscaler (NASDAQ:ZS) Exceeds Q4 Expectations, Stock Soars | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Zscaler (NASDAQ:ZS) Exceeds Q4 Expectations, Stock Soars Cloud security platform Zscaler (NASDAQ:) reported Q4 FY2023 results topping analysts&#039;\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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