Zscaler Files Q3 2024 10-Q Report

TL;DR

Zscaler's Q3 2024 10-Q is in. Check financials.

AI Summary

Zscaler, Inc. filed its 10-Q for the period ending April 30, 2024. The filing covers the third quarter of their fiscal year. Key financial data and business operations for this period are detailed within the report.

Why It Matters

This report provides investors with an update on Zscaler's financial performance and operational status for the third quarter of fiscal year 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• Zscaler, Inc. (company) — Filer of the 10-Q report
• 20240430 (date) — End of the reporting period
• 20240607 (date) — Filing date of the report

FAQ

Key Financial Figures

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

Filing Documents

• zs-20240430.htm (10-Q) — 2114KB
• zsexhibit311q3fy2410q.htm (EX-31.1) — 9KB
• zsexhibit312q3fy2410q.htm (EX-31.2) — 9KB
• zsexhibit321q3fy2410q.htm (EX-32.1) — 11KB
• 0001713683-24-000075.txt ( ) — 10052KB
• zs-20240430.xsd (EX-101.SCH) — 46KB
• zs-20240430_cal.xml (EX-101.CAL) — 98KB
• zs-20240430_def.xml (EX-101.DEF) — 282KB
• zs-20240430_lab.xml (EX-101.LAB) — 706KB
• zs-20240430_pre.xml (EX-101.PRE) — 520KB
• zs-20240430_htm.xml (XML) — 1824KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets as of April 3 0 , 2024 and July 31, 2023 3 Condensed Consolidated Statement of Operations for the Three and Nine Months Ended April 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income ( Loss ) for the Three and Nine Months Ended April 3 0 , 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended April 3 0 , 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended April 3 0 , 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 33 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 55 Item 4.

Controls and Procedures

Controls and Procedures 56

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 58 Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 97 Item 5. Other Information 97 Item 6. Exhibits 98

Signatures

Signatures 99 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, 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; anticipa

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item. 1 Financial Statements ZSCALER, INC. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) (unaudited) April 30, 2024 July 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,259,197 $ 1,262,206 Short-term investments 980,802 838,026 Accounts receivable, net 506,284 582,636 Deferred contract acquisition costs 135,095 115,827 Prepaid expenses and other current assets 88,636 91,619 Total current assets 2,970,014 2,890,314 Property and equipment, net 330,646 242,355 Operating lease right-of-use assets 92,473 70,671 Deferred contract acquisition costs, noncurrent 268,079 259,407 Acquired intangible assets, net 68,959 25,859 Goodwill 417,029 89,192 Other noncurrent assets 51,551 30,519 Total assets $ 4,198,751 $ 3,608,317 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 28,030 $ 18,481 Accrued expenses and other current liabilities 82,639 64,975 Accrued compensation 163,119 136,800 Deferred revenue 1,376,676 1,281,143 Operating lease liabilities 50,857 34,469 Total current liabilities 1,701,321 1,535,868 Convertible senior notes, net 1,137,687 1,134,159 Deferred revenue, noncurrent 200,338 158,533 Operating lease liabilities, noncurrent 46,897 41,917 Other noncurrent liabilities 19,369 12,728 Total liabilities 3,105,612 2,883,205 Commitments and contingencies (Note 11) Stockholders' Equity Common stock; $ 0.001 par value; 1,000,000 shares authorized as of April 30, 2024 and July 31, 2023; 151,304 and 147,169 shares issued and outstanding as of April 30, 2024 and July 31, 2023, respectively 151 147 Additional paid-in capital 2,241,865 1,816,915 Accumulated other comprehensive loss ( 15,675 ) ( 1,576 ) Accumulated deficit ( 1,133,202 ) ( 1,090,374 ) Total stockholders' equity 1,093,139 725,112 Total liabilities and stockholders' equity $ 4,198,751 $ 3,608,317 The accompanying notes are an integral part of these condensed consoli

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View this 10-Q filing on SEC EDGAR