Zscaler Inc · NASDAQ:ZS
Zscaler — Q3 2025 Earnings Presentation
26 slides from Zscaler's earnings presentation, May 29, 2025
Slide 1: Fiscal Q3 2025 Earnings Call
Fiscal Q3 2025 Earnings Call May 2025
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this presentation. This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for information
Slide 3: Q3'25 results exceeded guidance on all metrics
Q3’25 results exceeded guidance on all metrics Q3 Guidance Q3 Results Q3 Results vs. Guidance $665M - $667M $678M Revenue Exceeded 20%-21% y/y 23% y/y $785M Calculated Billings +200-260bps Q/Q Exceeded +600bps Q/Q $760M Calculated Current Billings No Guidance No Guidance 24% y/y Gross Margin ~80% 80
Slide 4: Key business metrics sustain growth momentum
Key business metrics sustain growth momentum Growth at scale Customers increasing Latest innovations with strong profitability commitments with Zscaler resonating with customers Revenue Growth Y/Y RPO1 New growth categories3 ARR 23%+ ~$5B ~$1B Strong growth across all geos RPO growth +30% Y/Y growin
Slide 5: Operating at rule of 52% for Year-to-date FY25
Operating at rule of 52% for Year-to-date FY25 In a rarefied category among large publicly traded SaaS companies Rule-of-52 YTD Q3’25 28% 52% 24% Revenue growth % FCF Margin % Rule of 40 2025 Zscaler, Inc. All rights reserved All numbers presented on an adjusted, non-GAAP basis. See appendix of this
Slide 6: 50M+ user milestone achieved!
50M user milestone achieved! 50M+ 20+ Petabytes 500B+ Total Users secured on our platform Traffic flowing through Zero Trust Daily transactions Exchange Cloud every day >50x number of daily google searches More users extend our competitive advantage and more high-quality data for our AI solutions 20
Slide 7: 14 years: Leadership in user security
Longest running leader for user security 14 years Leadership in user security Zscaler’s Zero Trust Platform goes far beyond user security. We deliver Zero Trust Everywhere: • Zero Trust Branch • Zero Trust Devices (IoT/OT) • Zero Trust Cloud 2025 Zscaler, Inc. All rights reserved
Slide 8: Z-Flex: Customer benefits
Z-Flex: Customer benefits • Flexible consumption: Flexibility to swap modules in-contract • Simplified procurement: no friction as products are added / swapped • Predictable Budget: no retrospective billing • Favorable Pricing: discounts scale with increasing commitments • White-glove deployment and
Slide 9: Z-Flex - Customer case study
Z-Flex - Customer case study Fortune 500 Technology customer Before Z-Flex After Z-Flex plan 20 modules added/expanded : ARR ~$13M ~$19M ARR uplift 40% Threat Hunting Micro Segmentation Seats 34,000 40,000 8 ITDR Device Zero Trust Branch modules Segmentation added Endpoint DLP E-mail DLP DSPM User A
Slide 10: New Growth Categories
New Growth Categories Zero Trust Data Security Agentic Everywhere Everywhere Operations All Entities, All Locations Cloud, SaaS, Endpoint SecOps, IT Ops AI Everywhere 2025 Zscaler, Inc. All rights reserved
Slide 11: Three new growth categories
Three new growth categories “Zero Trust Everywhere” 1 ▪ Zero Trust Users (ZIA/ZPA) Three emerging ▪ Zero Trust Cloud (Posture Control, Workloads) growth categories ▪ Zero Trust Branch (Branch Connector, Device Segmentation) approaching Data Security Everywhere ▪ ▪ ▪ ▪ Cyber Isolation Inline DLP SaaS
Slide 12: Growing adoption of Zero Trust Everywhere
Growing adoption of Zero Trust Everywhere Goal: 390+ “Zero Trust Everywhere”1 enterprises2 by FY26 390+ “Zero Trust Everywhere” Zero Trust 210+ Everywhere 130+ Data Security Everywhere Firewall MPLS VPN VDI DDoS NAC …and more Agentic Operations Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY26E Graph is illustrati
Slide 13: Zero Trust Branch and Zero Trust Cloud driving Zero Trust Everywhere growth
Zero Trust Branch and Zero Trust Cloud driving Zero Trust Everywhere growth Zero Trust Branch Zero Trust Cloud Zero Trust 59 7-Figure ACV deal Everywhere Global Bank % • Protecting all their workload traffic with of customers who bought Zero Zscaler, after securing employees and mobile Trust branch
Slide 14: Most comprehensive Data Security Everywhere platform
Most comprehensive Data Security Everywhere platform Zscaler Data Security Modules Cyber Isolation DP Isolation Gen AI Security Deal Wins Inline DLP Endpoint DLP ● G2K Tech Company Zero Trust ● Fleet Management Company Everywhere SaaS Security Email DLP ● Large Federal Customer Classification & Encr
Slide 15: Rapid expansion in our Agentic Operations portfolio
Rapid expansion in our Agentic Operations portfolio IT OPS SECURITY OPS Zero Trust Everywhere 7-Figure ZDX deal 7-Figure UVM Deal US healthcare provider US healthcare provider Upsell, 7-figure ACV deal Upsell, 7-figure ACV deal Data Security Everywhere • Customer purchased ZDX Adv. Plus SKU for • Cu
Slide 16: Scaling Zscaler's Platform Vision with Red Canary
Scaling Zscaler’s Platform Vision with Red Canary Deal rationale Deal terms Highly talented and experienced detection and threat intel engineers $675M in Cash Red Canary has developed sophisticated agentic AI technology for reasoning and workflow Equity for employees Red Canary’s technology will be
Slide 17: Select Q3'25 deal summaries
Select Q3’25 deal summaries Success in selling the broader platform F500 Technology Global Bank F50 Automotive F100 Beverage Upsell, 7-figure deal Upsell, 7-figure deal Upsell, 7-figure deal New Logo, 7-figure deal ZIA 40,000 users ZIA 150,000 users ZIA 75,000 users ZIA 100,000 users ZPA 40,000 user
Slide 18: Sustained Large customer momentum
Sustained Large customer momentum $100K+ ARR Customers $1M+ ARR Customers 18% CAGR 27% CAGR 3,363 642 ~45% Fortune 500 Customers1 400 2,432 >35% Global 2000 Customers1 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 2025 Zscaler, Inc. All r
Slide 19: Improving operating efficiency, profitability & cash flow
Improving operating efficiency, profitability & cash flow (in $ M) Gross Profit & Margin Operating Profit & Margin Free Cash Flow & Margin 85.00% $180 $180.0 30% $600 80% 81% 80% 22% 22% 23.00% 80.00% $160 $160.0 22% 25% 21.00% 18% 18% 20% $500 75.00% $140 $140.0 19.00% 15% 70.00% $120 $120.0 $400 1
Slide 20: Growing across all geographies
Growing across all geographies Revenue mix by geographies $678M $648M $628M $593M 16% $553M 16% $525M 16% $497M 15% 15% 15% 15% 30% 30% 30% 30% 31% 31% 32% 54% 54% 54% 54% 55% 53% 54% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Americas EMEA APJ 2025 Zscaler, Inc. All rights reserved
Slide 21: FY25 guidance
FY25 guidance New vs. Prior FY25 Prior FY25 Guidance New FY25 Guidance Guidance $2.640B - $2.654B $2.659B - $2.661B Revenue Increased ~22% y/y ~23% y/y $3.153B - $3.168B $3.184B - $3.189B Calculated Billings Increased 20%-21% y/y 21% -22% y/y $562M - $572M $573M - $575M Operating Profit Increased 21
Slide 22: Financial Appendix
Financial Appendix
Slide 23: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe that the presentation of non-GAAP financial information provides important supplemental information to man
Slide 24: Appendix A: GAAP to Non-GAAP Reconciliation
Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands, EXCEPT PERCENTAGES Q3 '25 Q3 '24 Q3 '23 Revenue $ 678,034 $ 553,201 $ 418,800 Non-GAAP Gross Profit and Non-GAAP Gross Margin GAAP gross profit $ 522,056 $ 434,870 $ 322,951 Add: Stock-based compensation expense and related payroll taxes 18
Slide 25: Appendix A: GAAP to Non-GAAP Reconciliation
Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands, EXCEPT PER SHARE AMOUNTS Q3 '25 Q3 ‘24 Non-GAAP Net Income per Share, Diluted GAAP net income (loss) $ (4,125) $ 19,124 Add: GAAP provision for income taxes 8,688 1,742 GAAP income before income taxes 4,563 20,866 Add: Stock-based compensat
Slide 26: Appendix A: GAAP to Non-GAAP Reconciliation
Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands, EXCEPT PER SHARE AMOUNTS Q3 ‘25 Q3 ‘24 Q3 ‘23 Calculated Billings Revenue $ 678,034 $ 553,201 $ 418,800 Add: Total deferred revenue, end of period 1,984,985 1,577,014 1,175,373 Less: Total deferred revenue, beginning of period (1,878,505) (