Zscaler Inc · NASDAQ:ZS
Zscaler — Q3 2023 Earnings Presentation
18 slides from Zscaler's earnings presentation, Jun 1, 2023
Slide 1: Q3 Fiscal Year 2023 Earnings Call
Q3 Fiscal Year 2023 Earnings Call June 1, 2023
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: Fiscal Q3'23 Results
Fiscal Q3’23 Results Revenue By Region Q3 Guidance Q3 Results APJ 15% of Revenue $396M - $398M $419M Revenue 38% - 39% y/y 46% y/y $482M Calculated Billings 40% y/y EMEA 31% of Revenue Americas Calculated Current $477M 54% of Revenue Billings 44% y/y $336M Gross Profit 80.2% margin $55M - $56M $63.9
Slide 4: Large customer momentum
Large customer momentum $1M+ ARR Customers $100K+ ARR Customers 40% Fortune 500 Customers 87% 87% 85% 77% 62% 55% 51% 39% 52% 53% 48% 44% 41% 37% 33% 29% 400 378 2,432 288 327 348 1,891 2,089 2,217 2,337 30% Global 2000 Customers 1,751 251 1,616 224 1,480 202 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'2
Slide 5: Improving operating efficiency
Improving operating efficiency Gross Margin Operating Margin Free Cash Flow Margin 80.6% 80.2% +239 bps +577 bps 17.6% 15.3% 15.3% 9.5% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 © 2023 Zscaler, Inc. All rights reserved. 5
Slide 6: Comments on the business environment
Comments on the business environment Complex macro environment How we are navigating it Strong execution and customer-first approach Cyber attacks rapidly growing and evolving • Our comprehensive platform with high ROI is resonating with customers • Cyber is the #1 IT priority • Partnering earlier w
Slide 7: The Zscaler Zero Trust Exchange Platform
The Zscaler Zero Trust ExchangeTM Platform Internet SaaS IaaS/PaaS Data Center Zero Trust Connectivity Zero Trust Exchange SaaS (CASB/SSPM) Zero Trust Zero Trust Zero Trust Zero Trust Digital Experience for for for for IaaS / PaaS (CNAPP) Users Workloads IoT/OT B2B Visibility from endpoint Endpoint
Slide 8: High ROI delivered by the Zero Trust Exchange
High ROI delivered by the Zero Trust Exchange Point Product Consolidation Lower Business Risk • Outbound DMZ (firewalls, proxy, DLP, etc) • True Zero Trust architecture, minimize the attack surface and lateral threat movement • Inbound DMZ (VPN, load balancers, etc) • Lower risk: ransom, business di
Slide 9: Architecture matters in delivering high performance at scale
Architecture matters in delivering high performance at scale Zscaler’s Patented Service Function Chaining Single-Scan, Multi-Action (SSMA) Engine ... This is what others call a platform • Different vendors, different UIs and policies • One vendor, one UI, one action • Looking for different things •
Slide 10: Q3'23 Deal Highlights
Q3’23 Deal Highlights Global Bank in APJ Fortune 100 Logistics Global 30 Healthcare Insurance Fed Cabinet-Level Agency Upsell, >$10M ARR customer New logo, 4-year, multi-million ACV Large SSE win New logo, now landed at 12 of 15 Cabinet-level agencies ZIA 150,000 users ZIA 430,000 users ZIA 110,000
Slide 11: Leveraging AI/ML across our platform
Leveraging AI/ML across our platform Multi-Dimensional Data Feed Threat Prevention • Full inline logs Better • Anomaly detection from correlation • Real-time, limited batch processing Insight • Stop zero-day threats • Platform-wide correlation • Existing applications: quarantine, 300T+ browser isola
Slide 12: Financial Guidance
Financial Guidance Initial Updated Fiscal Q4 2023 FY Fiscal 2023 FY Fiscal 2023 $429M - $431M $1.49B - $1.50B $1.591B - $1.593B Revenue 35%-36% y/y 37% y/y Approx. 46% y/y $1.92B - $1.94B $1.974B - $1.978B Billings 30%-31% y/y 33%-34% y/y Gross Margins Approx. 80% $69M - $70M $173M - $176M $224M - $
Slide 13: Financial Appendix
Financial Appendix © 2023 Zscaler, Inc. All rights reserved.
Slide 14: 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 15: Appendix A: Non-GAAP to GAAP Reconciliation
Appendix A: Non-GAAP to GAAP Reconciliation ($ in thousands) © 2023 Zscaler, Inc. All rights reserved.
Slide 16: Appendix A: Non-GAAP to GAAP Reconciliation (cont.)
Appendix A: Non-GAAP to GAAP Reconciliation (cont.) ($ in thousands) © 2023 Zscaler, Inc. All rights reserved.
Slide 17: Appendix A: Non-GAAP to GAAP Reconciliation (cont.)
Appendix A: Non-GAAP to GAAP Reconciliation (cont.) ($ in thousands) © 2023 Zscaler, Inc. All rights reserved.
Slide 18: Appendix A: Non-GAAP to GAAP Reconciliation (cont.)
Appendix A: Non-GAAP to GAAP Reconciliation (cont.) ($ in thousands) © 2023 Zscaler, Inc. All rights reserved.