ZSCALER Achieves 43.1% Year-Over-Year Revenue Growth in Fourth Quarter of FY2023
September 13, 2023
☀️Earnings Overview
ZSCALER ($NASDAQ:ZS) announced on July 31, 2023, that their total revenue for the fourth quarter of FY2023 was USD 455.0 million, an increase of 43.1% compared to the same period in the previous year. Moreover, their net income improved significantly from -97.6 million to -30.7 million.
Analysis
GoodWhale has conducted an analysis of ZSCALER‘s finances and found that it has a high health score of 9/10 with regard to its cashflows and debt. This means that the company is capable to safely ride out any crisis without the risk of bankruptcy. Furthermore, ZSCALER is classified as a ‘cheetah’ type of company. We conclude that they have achieved high revenue or earnings growth but are considered less stable due to lower profitability. For this reason, investors who are interested in growth and long-term potential may be attracted to ZSCALER. The company is strong in growth, medium in asset and weak in dividend, profitability. This means that investors should be aware that there could be some level of risk involved, but that the potential for returns may be significant over the long term. Ultimately, it is up to each individual investor to decide if they believe the risks associated with ZSCALER are worth taking. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zscaler. More…
| Total Revenues | Net Income | Net Margin |
| 1.62k | -202.34 | -12.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zscaler. More…
| Operations | Investing | Financing |
| 462.34 | -259.34 | 45.99 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zscaler. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.61k | 2.88k | 4.97 |
Key Ratios Snapshot
Some of the financial key ratios for Zscaler are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.4% | – | -10.9% |
| FCF Margin | ROE | ROA |
| 20.6% | -16.6% | -3.0% |
Peers
In the cyber security industry, there is intense competition between Zscaler Inc and its main rivals, CrowdStrike Holdings Inc, Palo Alto Networks Inc, and Fortinet Inc. All four companies are constantly innovating and developing new products and services in order to stay ahead of the competition and provide the best possible protection for their customers. While each company has its own strengths and weaknesses, it is clear that Zscaler is a leading player in the industry and its competitors are constantly trying to catch up.
– CrowdStrike Holdings Inc ($NASDAQ:CRWD)
CrowdStrike Holdings Inc is a provider of security technology and services. The company has a market cap of 36.61B as of 2022 and a return on equity of -6.41%. The company provides a cloud-based platform that helps organizations to prevent, detect, and respond to cyber threats. The company offers a range of services, including managed detection and response, incident response, and threat intelligence.
– Palo Alto Networks Inc ($NASDAQ:PANW)
Palo Alto Networks Inc is a global cybersecurity company with a market cap of 47.91B as of 2022 and a Return on Equity of -42.69%. The company provides a range of security products and services, including firewall and endpoint security products, to help enterprises protect their networks and data from cyber threats. Palo Alto Networks has a diversified customer base, including small and medium-sized businesses, large enterprises, and government agencies.
– Fortinet Inc ($NASDAQ:FTNT)
Fortinet Inc is a cybersecurity company that provides network security products and services. The company has a market cap of 40.84B as of 2022 and a Return on Equity of -502.78%. Fortinet’s products and services include firewall, intrusion detection and prevention, and virtual private network (VPN) products. The company offers its products and services to enterprises, service providers, and government organizations worldwide.
Summary
ZSCALER had a strong quarter, with total revenue increasing 43.1% year-over-year to USD 455.0 million. Net income was USD -30.7 million, a marked improvement over the prior year’s figure of -97.6 million. The company has continued to demonstrate strong performance for investors, and the future looks promising for those who choose to invest in ZSCALER. With their strong technology and financial growth, ZSCALER is a great choice for investors looking for long-term gains.
Related Posts
Recent Posts
