Zscaler Inc · NASDAQ:ZS

Zscaler — Q2 2025 Earnings Presentation

22 slides from Zscaler's earnings presentation, Mar 5, 2025

  1. Slide 1: Fiscal Q2 2025 Earnings Call

  2. 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

  3. Slide 3: Q2 exceeds guidance on all metrics

    Q2 exceeds guidance on all metrics Revenue Calculated Billings Calculated Current Billings Gross Margin Operating Profit EPS Free Cash Flow Q2 Guidance $633M - $635M ~21% y/y No Guidance No Guidance ~80% $126M - $128M ~20% margin $0.68 - $0.69 No Guidance Q2 Results $648M 23% y/y $743M 18% y/y $711M

  4. Slide 4: Key business metrics sustain growth momentum

    Key business metrics sustain growth momentum Driving profitable growth at scale Revenue Growth Y/Y 23%+ Strong growth across all geos Operating Margin 22% Operating Profit growth +36% Y/Y Free Cash Flow Margin 22% Free Cash Flow growth +42% Y/Y Increasing customer commitments with Zscaler RPO $4.6B+

  5. Slide 5: Revenue growth, FCF margin and Rule of 40

    22%+ 45%+ 23%+ Revenue growth % FCF Margin % Rule of 40 © 2025

  6. Slide 6: Firewall, MPLS, VPN and legacy replacement

    Firewall MPLS VPN VDI DDoS NAC …and more © 2025

  7. Slide 7: Quarterly trend Q3'24 to FY26E

    ➢ ➢ Q3'24 Q4'24 Q1'25 Q2'25 FY26E © 2025

  8. Slide 8: Firewall, SD-WAN, NACs and more

    • • • • • • Firewall SD-WAN NACs MPLS • • Switches Routers …and more © 2025

  9. Slide 9: Select Q2'25 deal highlights

    @zscaler Select Q2’25 deal highlights G2K Retailer Upsell, 7-figure deal 30,000 users Es 30,000 users ZDX 30,000 users Mai 30,000 users Key features: + Existing DLP vendor displaced for entire org. Further plans to eliminate their existing VPN vendors + Cost savings exceed ZS’ annual cost to the cus

  10. Slide 10: Customer industries

    Finance & Insurance Technology Manufacturing Government Healthcare Retail & Wholesale Services Arts, Media & Entertainment © 2025

  11. Slide 11: Security for AI

    Security for AI Software for AI • • • Infrastructure for AI Hardware for AI © 2025

  12. Slide 12: Quarterly metrics trend Q2'23 to Q2'25

    Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 © 2025

  13. Slide 13: Gross profit, operating profit and free cash flow

    85.00% $180 25.00% 30% $600 $160 $200.0 80.00% 25% $500 $140 20.00% 75.00% $120 $150.0 20% 70.00% $400 15.00% 65.00% $100 15% $300 $80 $100.0 60.00% 10.00% 55.00% $60 10% $200 $40 $50.0 50.00% 5.00% 5% $100 45.00% $20 $0 0.00% $0.0 0% $0 40.00% Q2 '23 Q2 '24 Q2 '25 Q2 '23 Q2 '24 Q2 '25 Q2 '23 Q2 '24

  14. Slide 14: Revenue by geography

    Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Americas EMEA APJ © 2025

  15. Slide 15: Serviceable addressable market opportunity

    In early stages $ 9 6 B Serviceable Addressable Market of capturing our large marke Oo p po rt U n ity Zero Trust for Users’ Zero Trust for Cloud’ and Branch: = = Data Protection’ Al-Analytics Solutions* 2025 Zscaler, Inc. Allrights reserved. 15

  16. Slide 16: FY25 guidance

    FY25 guidance Revenue Calculated Billings Operating Profit Earnings Per Share Free Cash Flow Margin Prior FY25 Guidance $2.623B - $2.643B 21%-22% y/y $3.124B - $3.149B 19%-20% y/y $549M — $559M ~21% margin $2.94 — $2.99 23.5%-24.0% New FY25 Guidance $2.640B — $2.654B ~22% y/y $3.153B - $3.168B 20%-2

  17. Slide 17: © 2025 Zscaler, Inc. All rights reserved.

    • • • • • • • • • • © 2025 Zscaler, Inc. All rights reserved. 17

  18. Slide 18: Financial Appendix

  19. Slide 19: Non-GAAP to GAAP reconciliations shown on the following slides

    ▪ ▪ ▪ ▪ *Non-GAAP to GAAP reconciliations shown on the following slides. © 2025

  20. Slide 20: Appendix A: GAAP to Non-GAAP Reconciliation

    Appendix A: GAAP to Non-GAAP Reconciliation $ IN THOUSANDS, EXCEPT PERCENTAGES Q2 25 Q2 24 Q2 23 Revenue $ 647,900 $ 524,999 $ 387,598 Non-GAAP Gross Profit and Non-GAAP Gross Margin GAAP gross profit $ 499,402 $ 407,800 $ 299,994 Add: Stock-based compensation expense and related payroll taxes 17,61

  21. Slide 21: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)

    Appendix A: GAAP to Non-GAAP Reconciliation (cont.) $ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Q225 Q224 GAAP net loss $ (7,724) $ (28,469) Add: GAAP provision for (benefit from) income taxes (8,813) 7,964 GAAP loss before income taxes (16,537) (20,505) Add: Stock-based compensation expense and relate

  22. Slide 22: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)

    Appendix A: GAAP to Non-GAAP Reconciliation (cont.) $ IN THOUSANDS, EXCEPT PERCENTAGES Q225 Q224 Q223 Revenue $ 647,900 $ 524,999 $ 387,598 Add: Total deferred revenue, end of period 4,878,505 4,502,175 4,111,880 Less: Total deferred revenue, beginning of period (4,783,720) (1,399,544) (4,005,713) R

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