Zscaler, Inc. Files 10-Q for Period Ending January 31, 2024

TL;DR

<b>Zscaler, Inc. has filed its quarterly report (10-Q) for the period ending January 31, 2024, providing an update on its financial performance and business operations.</b>

AI Summary

Zscaler, Inc. (ZS) filed a Quarterly Report (10-Q) with the SEC on March 6, 2024. Zscaler, Inc. filed a 10-Q report for the period ending January 31, 2024. The filing covers the second quarter of fiscal year 2024. The company's headquarters are located at 110 Rose Orchard Way, San Jose, CA 95134. The filing was submitted on March 6, 2024. Zscaler, Inc. is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking Zscaler, Inc., this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data and operational insights for Zscaler, Inc. for the second quarter of fiscal year 2024. Understanding the details within this report is crucial for assessing the company's current financial health, growth trajectory, and potential risks moving forward.

Risk Assessment

Risk Level: low — Zscaler, Inc. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not inherently contain significant new risks beyond those typically associated with public companies in the technology sector.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Zscaler's performance in Q2 FY24 and identify any emerging trends or risks.

Key Numbers

• 2024-01-31 — Reporting Period End Date (Conformed period of report)
• 2024-03-06 — Filing Date (Filed as of date)
• Q2 — Fiscal Quarter (Fiscal year and quarter designation)
• 0731 — Fiscal Year End (Fiscal year end month and day)

Key Players & Entities

• Zscaler, Inc. (company) — Filer name
• 2024-01-31 (date) — Conformed period of report
• 2024-03-06 (date) — Filed as of date
• 110 Rose Orchard Way, San Jose, CA 95134 (address) — Business address
• DE (state) — State of incorporation
• 7371 (sic_code) — Standard Industrial Classification
• 001-38413 (sec_file_number) — SEC file number

FAQ

Industry Context

Zscaler operates in the cybersecurity industry, focusing on cloud-native security solutions.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting.

What Investors Should Do

1. Analyze Zscaler's revenue and profitability trends from the Q2 FY24 10-Q.
2. Identify any significant changes in operating expenses or capital expenditures.
3. Assess the company's liquidity and debt position as detailed in the balance sheet.

Key Dates

• 2024-01-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-03-06: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending January 31, 2024. Previous filings would include the 10-Q for the period ending October 31, 2023, and the 10-K for the fiscal year ending July 31, 2023.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 Par Value ZS The Nasdaq Stock Market LL

Filing Documents

• zs-20240131.htm (10-Q) — 1977KB
• zsexhibit311q2fy2410q.htm (EX-31.1) — 9KB
• zsexhibit312q2fy2410q.htm (EX-31.2) — 9KB
• zsexhibit321q2fy2410q.htm (EX-32.1) — 11KB
• 0001713683-24-000041.txt (&nbsp;) — 9235KB
• zs-20240131.xsd (EX-101.SCH) — 41KB
• zs-20240131_cal.xml (EX-101.CAL) — 88KB
• zs-20240131_def.xml (EX-101.DEF) — 258KB
• zs-20240131_lab.xml (EX-101.LAB) — 661KB
• zs-20240131_pre.xml (EX-101.PRE) — 484KB
• zs-20240131_htm.xml (XML) — 1638KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets as of J anuary 31, 202 4 and July 31, 2023 3 Condensed Consolidated Statement of Operations for the Three and Six Months Ended January 31, 202 4 and 202 3 4 Condensed Consolidated Statements of Comprehensive Loss for the Three a nd Six Months Ended J anuary 31, 202 4 and 202 3 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended January 31, 202 4 and 202 3 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended January 31, 2024 and 2023 8 Notes to Unaudited Condensed Consolidated Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 49

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90 Item 5. Other Information 90 Item 6. Exhibits 90

Signatures

Signatures 92 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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, geopolitical events and the COVID-19 pandemic 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 AI and ML capabilities, and bring them to market in a timely manner; market acceptance of any new solutions or enhancements to our existing solutions; anticipated trends, g

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item. 1 Financial Statements ZSCALER, INC. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) (unaudited) January 31, 2024 July 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,438,586 $ 1,262,206 Short-term investments 1,021,218 838,026 Accounts receivable, net 479,611 582,636 Deferred contract acquisition costs 125,591 115,827 Prepaid expenses and other current assets 77,702 91,619 Total current assets 3,142,708 2,890,314 Property and equipment, net 294,495 242,355 Operating lease right-of-use assets 87,804 70,671 Deferred contract acquisition costs, noncurrent 255,883 259,407 Acquired intangible assets, net 22,540 25,859 Goodwill 92,415 89,192 Other noncurrent assets 38,381 30,519 Total assets $ 3,934,226 $ 3,608,317 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 17,137 $ 18,481 Accrued expenses and other current liabilities 68,217 64,975 Accrued compensation 137,362 136,800 Deferred revenue 1,316,416 1,281,143 Operating lease liabilities 44,773 34,469 Total current liabilities 1,583,905 1,535,868 Convertible senior notes, net 1,141,011 1,134,159 Deferred revenue, noncurrent 185,759 158,533 Operating lease liabilities, noncurrent 47,906 41,917 Other noncurrent liabilities 16,789 12,728 Total liabilities 2,975,370 2,883,205 Commitments and contingencies (Note 10) Stockholders' Equity Common stock; $ 0.001 par value; 1,000,000 shares authorized as of January 31, 2024 and July 31, 2023; 149,758 and 147,169 shares issued and outstanding as of January 31, 2024 and July 31, 2023, respectively 150 147 Additional paid-in capital 2,114,041 1,816,915 Accumulated other comprehensive loss ( 3,009 ) ( 1,576 ) Accumulated deficit ( 1,152,326 ) ( 1,090,374 ) Total stockholders' equity 958,856 725,112 Total liabilities and stockholders' equity $ 3,934,226 $ 3,608,317 The accompanying notes are an integral part of these condensed con

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View this 10-Q filing on SEC EDGAR