Zscaler Files Q1 Fiscal 2025 10-Q Report

TL;DR

Zscaler's Q1 FY25 10-Q is in: check financials for latest performance.

AI Summary

Zscaler, Inc. filed its 10-Q for the period ending October 31, 2024, reporting on its financial performance. The filing covers the first quarter of its fiscal year 2025. Key financial data and operational details for this period are detailed within the report.

Why It Matters

This filing provides investors and analysts with the latest financial results and operational updates for Zscaler, a key player in cloud security, impacting its stock valuation and future growth prospects.

Risk Assessment

Risk Level: medium — As a publicly traded technology company, Zscaler faces inherent market, competitive, and operational risks detailed in its SEC filings.

Key Players & Entities

• Zscaler, Inc. (company) — Filer of the 10-Q report
• 2024-10-31 (date) — End of the reporting period
• 2024-12-05 (date) — Filing date of the 10-Q
• 0001713683-24-000150 (other) — Accession number for the filing

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-20241031.htm (10-Q) — 1613KB
• zsexhibit311q1fy2510q.htm (EX-31.1) — 9KB
• zsexhibit312q1fy2510q.htm (EX-31.2) — 9KB
• zsexhibit321q1fy2510q.htm (EX-32.1) — 11KB
• 0001713683-24-000150.txt ( ) — 8378KB
• zs-20241031.xsd (EX-101.SCH) — 42KB
• zs-20241031_cal.xml (EX-101.CAL) — 89KB
• zs-20241031_def.xml (EX-101.DEF) — 230KB
• zs-20241031_lab.xml (EX-101.LAB) — 653KB
• zs-20241031_pre.xml (EX-101.PRE) — 472KB
• zs-20241031_htm.xml (XML) — 1435KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets as of October 3 1 , 2024 and July 31, 202 4 3 Condensed Consolidated Statement of Operations for the Three Months Ended October 3 1 , 2024 and 2023 4 Condensed Consolidated Statements of Comprehensiv e Loss for the Three Months Ended October 3 1 , 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended October 3 1 , 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended October 3 1 , 2024 and 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 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 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 86 Item 5. Other Information 86 Item 6. Exhibits 86

Signatures

Signatures 87 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: the impact of macroeconomic and geopolitical events, developments and conditions 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, growth rates and challenges in our business and i

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item. 1 Financial Statements ZSCALER, INC. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) (unaudited) October 31, 2024 July 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,553,645 $ 1,423,080 Short-term investments 1,154,252 986,574 Accounts receivable, net 424,573 736,529 Deferred contract acquisition costs 152,475 148,873 Prepaid expenses and other current assets 108,835 101,561 Total current assets 3,393,780 3,396,617 Property and equipment, net 409,005 383,121 Operating lease right-of-use assets 84,091 89,758 Deferred contract acquisition costs, noncurrent 286,656 296,525 Acquired intangible assets, net 59,595 63,835 Goodwill 417,029 417,029 Other noncurrent assets 58,846 58,083 Total assets $ 4,709,002 $ 4,704,968 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 25,368 $ 23,309 Accrued expenses and other current liabilities 83,384 91,708 Accrued compensation 126,379 160,810 Deferred revenue 1,533,080 1,643,919 Convertible senior notes 1,145,799 1,142,275 Operating lease liabilities 49,600 50,866 Total current liabilities 2,963,610 3,112,887 Deferred revenue, noncurrent 250,640 251,055 Operating lease liabilities, noncurrent 41,938 44,824 Other noncurrent liabilities 24,269 22,100 Total liabilities 3,280,457 3,430,866 Commitments and contingencies (Note 10) Stockholders' Equity Preferred stock; $ 0.001 par value; 200,000 shares authorized as of October 31, 2024 and July 31, 2024; no shares issued and outstanding as of October 31, 2024 and July 31, 2024 — — Common stock; $ 0.001 par value; 1,000,000 shares authorized as of October 31, 2024 and July 31, 2024; 153,415 and 152,490 shares issued and outstanding as of October 31, 2024 and July 31, 2024, respectively 153 152 Additional paid-in capital 2,593,010 2,426,819 Accumulated other comprehensive loss ( 4,487 ) ( 4,789 ) Accumulated deficit ( 1,160,131 ) ( 1,148,080

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View this 10-Q filing on SEC EDGAR