Zscaler Fiscal Year Q4 2022 Earnings Results

I am very pleased to share that Zscaler once again delivered strong Q4 results to end another outstanding year. In the quarter, we delivered 61% revenue growth and 57% billings growth, as customers continued to embrace our Zero Trust Exchange cloud-native platform to secure their digital transformation initiatives. We are delivering remarkable growth while generating strong profitability.?

Our free cash flow margin was 24%, which was a record for Q4. While many public SaaS companies pride themselves on achieving the Rule-of-40, Zscaler surpassed the Rule-of-80 for the quarter and for the full year. These outstanding results reflect the solid underlying unit economics of our business that has high-90% gross retention rate and over 80% gross margins. This is possible because of our differentiated services and purpose-built, multi-tenant cloud platform that dynamically scales with efficiency. For the full year, our revenue grew 62% to $1.1 billion and billings grew 59% to $1.5 billion.

Fiscal year Q4 was an extremely active quarter for us - we were back in-person at Zenith Live 2022, our annual user conference and we introduced Posture Control, a new #CNAPP-based solution helping enterprises securely accelerate their transition to the cloud.

We believe our outstanding results are due in part to the increasing appetite for a cloud-native security platform to protect enterprises from escalating and sophisticated cybersecurity threats. In my conversations with the world’s leading security and IT leaders, cybersecurity remains a top IT priority. Advanced technologies, like Zscaler, are helping to accelerate their digital transformation through the adoption of #ZeroTrust and Security Service Edge (#SSE)-powered platforms. They understand that a modern, cloud-based approach to security is a fundamental requirement - especially in today’s highly-mobile and distributed enterprises - to protect company data, apps and employees, while improving user experiences and reducing cost and IT complexity.

This fiscal year, we saw strong performance across all products, industry verticals, market segments and geographies, leading indicators that we’re making great progress towards our long-term goal of protecting 200 million users around the globe. While the global markets continue to contend with underlying macroeconomic challenges in the current fiscal year, we believe that our innovative Zero Trust platform and integrated set of services coupled with significant new customer adoption and existing customer upsell opportunities will enable us to maintain strong and consistent results.

One area that I’m especially proud of is our progress with our Environmental, Social and Governance (#ESG) goals and initiatives. While we are certainly focused on growing our business, we are also committed to doing this responsibly in a sustainable manner. Since achieving 100% renewable energy last year, we are proud to be carbon neutral for calendar year 2022 and we have set a company goal to be Net Zero by 2025, joining our customers and our community in a collective effort to reduce our carbon footprint.

I’d like to thank the Zscaler team, our partners and our customers for helping to make Zscaler’s Q4 and FY22 a major success. Please read our earnings announcement for more details.

This message includes forward-looking statements. See important information: https://ir.zscaler.com/news-releases/news-release-details/zscaler-reports-fourth-quarter-and-fiscal-2022-financial-results