ZSCALER Reports Fourth Quarter Earnings Results for FY2023
September 7, 2023
🌥️Earnings Overview
ZSCALER ($NASDAQ:ZS) reported positive earnings results for the fourth quarter of FY2023 which ended on September 5 2023. Total revenue for the quarter was USD 455.0 million, representing an impressive 43.1% increase compared to the same period the previous year. Net income was also reported at a significantly improved result of USD -30.7 million, compared to the -97.6 million reported the year prior.
Stock Price
The results showed that the stock opened at $159.1 and closed at $162.7, which was a 2.8% increase from the previous closing price of $158.4. This marked a strong showing of financial performance for the quarter and indicated strong growth for the company overall. The reported growth and success was largely attributed to the company’s technological innovations and its growing adoption in the cloud security market. It was also bolstered by its strategic partnerships with firms such as Microsoft, Google, Alibaba, and Amazon Web Services that have helped drive customer acquisition.
Analysts also noted that ZSCALER has been able to maintain its financial performance even while the pandemic continues to affect businesses across the world. This is an especially impressive feat given the current climate and proves that ZSCALER is able to withstand tough market conditions. Overall, the company reported great progress in the fourth quarter and is well-positioned to continue its trajectory of growth for the upcoming fiscal year. Live Quote…
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% |
Analysis
At GoodWhale, we have conducted an in-depth analysis of ZSCALER‘s fundamentals. We have assigned the company a medium risk rating from both a financial and business perspective. Our analysis has uncovered three risk warnings in ZSCALER’s cashflow statement, non-financial and financial journal. These risk warnings are only visible to our registered users, so if you’d like to get a better understanding of ZSCALER’s fundamentals, be sure to register with us! More…
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 has had a successful fiscal year, posting a 43.1% increase in total revenue for the fourth quarter of FY2023 at USD 455.0 million. Net income also significantly improved, from a reported -97.6 million in FY2022 to -30.7 million in FY2023. This is an encouraging sign for investors looking to invest in the company, as it shows the company’s capabilities to generate and grow revenue. Furthermore, it provides a basis for estimating future earnings potential and can be used as a gauge for potential returns on investments.
