Stock in the Spotlight: Zscaler, Inc. (NASDAQ:ZS)

On Sep 16 2019, Zscaler, Inc. (NASDAQ:ZS) negotiated 2,863,849 shares against it an average volume of 2,909,345 shares. The stock concluded the recent trade at $47.62 with upbeat/downbeat trend moved of +0.29%.

Zscaler, Inc. (ZS) recently reported financial results for its fiscal fourth quarter and fiscal year ended July 31, 2019.

Fourth Quarter Fiscal 2019 Financial Highlights

  • Revenue:$86.1M, a raise of 53% year-over-year.
  • Income (loss) from operations: GAAP loss from operations was $7.9M, or 9% of total revenue, contrast to $7.9M, or 14% of total revenue, in the fourth quarter of fiscal 2018. Non-GAAP income from operations was $7.9M, or 9% of total revenue, contrast to loss from operations of $2.4M, or 4% of total revenue, in the fourth quarter of fiscal 2018.
  • Net income (loss):GAAP net loss was $5.3M, contrast to $7.0M in the fourth quarter of fiscal 2018. Non-GAAP net income was $9.1M, contrast to net loss of $1.4M in the fourth quarter of fiscal 2018.
  • Net income (loss) per share:GAAP net loss per share was $0.04, contrast to $0.06 in the fourth quarter of fiscal 2018. Non-GAAP net income per share was $0.07, contrast to net loss per share of $0.01 in the fourth quarter of fiscal 2018.
  • Cash flow:Cash provided by operations was $17.8M, or 21% of revenue, contrast to $14.7M, or 26% of revenue, in the fourth quarter of fiscal 2018. Positive free cash flow was $7.6M, or 9% of revenue, contrast to $11.9M, or 21% of revenue, in the fourth quarter of fiscal 2018.
  • Deferred revenue:$251.2M as of July 31, 2019, a raise of 53% year-over-year.
  • Cash, cash equivalents and short-term investments:$364.6M as of July 31, 2019, a raise of $66.1M from July 31, 2018.

Full Year Fiscal 2019 Financial Highlights

  • Revenue:$302.8M, a raise of 59% year-over-year.
  • Income (loss) from operations: GAAP loss from operations was $35.3M, or 12% of total revenue, contrast to $34.6M, or 18% of total revenue, in fiscal 2018. Non-GAAP income from operations was $25.1M, or 8% of total revenue, contrast to loss from operations of $15.4M in fiscal 2018, or 8% of total revenue.
  • Net income (loss):GAAP net loss was $28.7M, contrast to $33.6M in fiscal 2018. Non-GAAP net income was $30.3M, contrast to net loss of $14.4M in fiscal 2018.
  • Net income (loss) per share:GAAP net loss per share was $0.23, contrast to $0.63 in fiscal 2018. Pro forma non-GAAP net income per share was $0.22, contrast to net loss per share of $0.13 in fiscal 2018.
  • Cash flow:Cash provided by operations was $58.0M, or 19% of revenue, contrast to $17.3M, or 9% of revenue, in fiscal 2018. Positive free cash flow was $29.3M, or 10% of revenue, contrast to $2.1M, or 1% of revenue, in fiscal 2018.

Financial Outlook

For the first quarter of fiscal 2020, we expect:

  • Total revenue of $89M to $90M
  • Non-GAAP loss from operations of $1M to breakeven
  • Non-GAAP earnings per share of $0.00 to $0.01, assuming about 139M ordinary shares outstanding

For the full year fiscal 2020, we expect:

  • Total revenue of $395M to $405M
  • Calculated billings of $490M to $500M
  • Non-GAAP income from operations of $13M to $18M
  • Non-GAAP earnings per share of $0.12 to $0.15, assuming about 140M ordinary shares outstanding.

The average true range of the stock is observed at 4.13 and the relative strength index of the stock is recorded at 17.73. EPS growth for this year is -63.10% and EPS growth for next year is expected to reach at 79.87%.

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