Zscaler Files 2024 Annual Report

TL;DR

Zscaler dropped its 2024 10-K. Check financials.

AI Summary

Zscaler, Inc. filed its 10-K for the fiscal year ending July 31, 2024, reporting on its financial performance and business operations. The company, headquartered in San Jose, CA, is a leader in cloud security solutions. This filing provides a comprehensive overview of its financial health, strategic initiatives, and risk factors for investors.

Why It Matters

This filing is crucial for investors and analysts to understand Zscaler's financial standing, growth trajectory, and competitive positioning in the cybersecurity market.

Risk Assessment

Risk Level: medium — The company operates in a highly competitive and rapidly evolving technology sector, facing risks related to innovation, market adoption, and cybersecurity threats.

Key Players & Entities

• Zscaler, Inc. (company) — Filer of the 10-K
• 20240731 (date) — Fiscal year end
• San Jose, CA (location) — Company headquarters
• 0001713683-24-000109 (filing_id) — Accession number for the 10-K filing

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 Par Value ZS The Nasdaq Stock Market LL
• $1,090.9 million — nt growth, with revenue increasing from $1,090.9 million in fiscal 2022 to $1,617.0 million in f
• $1,617.0 million — from $1,090.9 million in fiscal 2022 to $1,617.0 million in fiscal 2023 to $2,167.8 million in f
• $2,167.8 million — 2 to $1,617.0 million in fiscal 2023 to $2,167.8 million in fiscal 2024, representing year-over-
• $57.7 m — pectively. We experienced net losses of $57.7 million, $202.3 million and $390.3 millio
• $202.3 million — xperienced net losses of $57.7 million, $202.3 million and $390.3 million in fiscal 2024, fisc
• $390.3 million — es of $57.7 million, $202.3 million and $390.3 million in fiscal 2024, fiscal 2023 and fiscal

Filing Documents

• zs-20240731.htm (10-K) — 2630KB
• exhibit1017-offerlettermik.htm (EX-10.17) — 29KB
• exhibit191-insidertradingp.htm (EX-19.1) — 99KB
• zsexhibit211fy2410-k.htm (EX-21.1) — 13KB
• zsexhibit231q4fy2410-k.htm (EX-23.1) — 3KB
• zsexhibit311q4fy2410-k.htm (EX-31.1) — 9KB
• zsexhibit312q4fy2410-k.htm (EX-31.2) — 9KB
• zsexhibit321q4fy2410-k.htm (EX-32.1) — 11KB
• exhibit971-compensationrec.htm (EX-97.1) — 38KB
• zs-20240731_g1.jpg (GRAPHIC) — 69KB
• 0001713683-24-000109.txt ( ) — 13979KB
• zs-20240731.xsd (EX-101.SCH) — 66KB
• zs-20240731_cal.xml (EX-101.CAL) — 135KB
• zs-20240731_def.xml (EX-101.DEF) — 386KB
• zs-20240731_lab.xml (EX-101.LAB) — 965KB
• zs-20240731_pre.xml (EX-101.PRE) — 724KB
• zs-20240731_htm.xml (XML) — 2417KB

Risk Factors

Item 1A. Risk Factors 19

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 57

Cybersecurity

Item 1C. Cybersecurity 57

Properties

Item 2. Properties 58

Legal Proceedings

Item 3. Legal Proceedings 58

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 58 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 59

Reserved

Item 6. Reserved 61

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 62

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 83

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 85

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 140

Controls and Procedures

Item 9A. Controls and Procedures 140

Other Information

Item 9B. Other Information 141

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 141 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 142

Executive Compensation

Item 11. Executive Compensation 142

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 142

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 142

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 142 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 143

Form 10-K Summary

Item 16. Form 10-K Summary 144

Signatures

Signatures Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "plan," "expect" and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the following: beliefs about the impact of macroeconomic influences and instability, including the ongoing effects of inflation, and geopolitical events on our business; our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (including changes in sales and marketing, research and development and general and administrative expenses) and our ability to achieve, and maintain, future profitability; market acceptance of our cloud platform; the effects of increased competition in our markets and our ability to compete effectively; our ability to maintain the security and availability of our cloud platform; our ability to maintain and expand our customer base, including by attracting new customers; our ability to develop new solutions or enhancements to our existing solutions, including artificial intelligence and machine learning capabilities, and bring them to market in a timely manner; market acceptance of any new solutions or enhancements to our existing solutions; anticipated trends,

Business

Item 1. Business Overview We anticipate, secure and simplify the experience of doing business, transforming today and tomorrow. We were incorporated in 2007, during the early stages of cloud adoption and mobility, based on a vision that the internet would become the new corporate network, as the cloud became the new data center. We predicted that with rapid cloud adoption and increasing workforce mobility, traditional perimeter security approaches would prove to be inadequate in protecting users and data and result in poor user experience. We pioneered a cloud platform, the Zscaler Zero Trust Exchange TM platform, which represents a fundamental shift in the architectural design and approach to networking and security. Enterprise applications are rapidly moving to the cloud to achieve greater IT agility, a faster pace of innovation and lower costs. Organizations are increasingly relying on internet destinations for a range of business activities, adopting new external software as a service, or SaaS, applications for critical business functions and moving their internally managed applications to the public cloud, infrastructure as a service, or IaaS, or platform as a service, or PaaS. Users now expect to be able to seamlessly access applications and data, wherever they are hosted, from any device, anywhere in the world. We believe these trends are indicative of the broader digital transformation agenda, as businesses increasingly succeed or fail based on their IT outcomes. We believe that securing the corporate network is becoming increasingly irrelevant in a cloud and mobile-first world where organizations depend on the internet, a network they do not control and cannot secure, to access critical applications that power their businesses. We pioneered a unique approach that securely connects users, devices and applications using business policies, regardless of the network. Our Zero Trust Exchange platform eliminates the need for traditional on-premises security a

View Full Filing

View this 10-K filing on SEC EDGAR