Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home News Equities

Zscaler, Inc. Q4 2024 Earnings Highlights

by Team Lumida
September 4, 2024
in Equities
Reading Time: 8 mins read
A A
0
Zscaler, Inc. Q4 2024 Earnings Highlights
Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Zscaler, Inc. (NASDAQ:ZS) delivered a robust Q4 2024 performance, exceeding expectations across key financial metrics and demonstrating strong market leadership in Zero Trust security solutions.

Top Takeaways

  1. Strong Financial Performance: Zscaler reported a 30% year-over-year revenue growth, reaching $593 million, with a 27% increase in billings and a record $1 billion in quarterly bookings.
  2. Zero Trust Platform Expansion: The company continues to lead in Zero Trust security, securing 47 million users and expanding its platform to include applications, workloads, and IoT/OT devices.
  3. AI and Innovation: Zscaler’s AI analytics solutions contributed significantly to new and upsell business growth, highlighting the company’s focus on leveraging AI for security enhancements.
  4. Market Leadership: With over $0.5 trillion transactions processed daily, Zscaler’s cloud platform demonstrates its market leadership and capability to handle massive data volumes.
  5. Strategic Go-to-Market Execution: The company is making significant progress in its go-to-market strategy, with a focus on account-centric sales and partnerships with Global System Integrators (GSIs).

Summary

Zscaler’s Q4 2024 results exceeded expectations, with revenue growing 30% year-over-year to $593 million. CEO Jay Chaudhry stated, “We delivered a strong Q4 with all metrics exceeding the high-end of our guidance,” underscoring the company’s robust performance and strategic execution. The company achieved a new milestone of $1 billion in quarterly bookings, driven by strong customer demand for its Zero Trust Exchange platform.

Main Themes

  • Guidance or Outlook: Zscaler expects fiscal 2025 revenue to grow by 20% to 21%, with a focus on expanding its Zero Trust platform and leveraging AI for security enhancements.
  • Competition: The competitive landscape remains stable, with Zscaler maintaining its leadership position in Zero Trust security.
  • Economy: Despite macroeconomic challenges, Zscaler continues to see strong demand for its solutions, driven by the increasing need for cybersecurity.
  • New Product Announcements: The company launched Gen AI Security to address security gaps exposed by the rising adoption of AI.
  • Market-moving Information: Zscaler’s ARR crossed $2.5 billion, with expectations to reach $3 billion in fiscal 2025.
  • Economic Outlook Summary: The demand for Zero Trust platforms is stronger than ever, with customers consolidating legacy security products.

Insights

Zscaler’s strategic focus on AI integration and Zero Trust security positions it as a leader in the cybersecurity industry. The company’s ability to process over $0.5 trillion transactions daily highlights its market leadership and capability to handle massive data volumes. The expansion of its platform to include applications, workloads, and IoT/OT devices further strengthens its competitive advantage.

Market Opportunity

Zscaler is expanding its addressable market by targeting new customer segments, including IoT/OT devices and workloads. The company’s focus on Zero Trust security and AI-driven solutions positions it well to capture a larger share of the $96 billion addressable market.

Market Commentary

The cybersecurity industry is experiencing a shift towards Zero Trust security solutions, driven by the increasing volume of sophisticated cyberattacks. Zscaler’s comprehensive platform and focus on AI integration position it as a leader in this evolving market.

Customer Behaviors

Zscaler is seeing strong traction with its Zero Trust platform, with a record number of new and upsell business in Q4. Customers are consolidating legacy security products and adopting Zscaler’s comprehensive platform to enhance their security posture.

CapEx

  • Zscaler’s data center CapEx was approximately 8% of revenue, reflecting investments in cloud and AI infrastructure.

Regulatory Policy

Zscaler is expanding its presence in the federal vertical, landing a new cabinet-level agency and increasing its count of cabinet-level agencies to 13. This expansion presents significant upsell opportunities in the federal market.

Economy Insights

CEO Jay Chaudhry noted, “The macro headwinds persist, but we see encouraging signs in some of our top verticals,” reflecting cautious optimism amid economic uncertainties.

Industry Insights

The integration of AI in cybersecurity is a game-changer, with Zscaler leading the charge. Competitors will need to innovate rapidly to keep pace with Zscaler’s advancements in AI-driven solutions.

Key Metrics

  • Financial Metrics: Revenue of $593 million (30% YoY growth), operating margin of 22%, free cash flow margin of 23%.
  • KPIs: 567 customers with over $1 million in ARR, 3,100 customers with over $100,000 in ARR, dollar-based net retention rate of 115%.

Competitive Differentiators

  • Zscaler’s Zero Trust Exchange platform offers comprehensive security for users, applications, workloads, and IoT/OT devices.
  • Strong market leadership with over $0.5 trillion transactions processed daily.
  • Proven ability to scale with large enterprises, including 35% of global 2000 companies as customers.

Key Risks

  • Continued macroeconomic challenges and potential delays in AI adoption by enterprise customers.
  • Competitive pressures from other cybersecurity vendors offering Zero Trust solutions.

Analyst Q&A

Analysts focused on the impact of macroeconomic conditions on Zscaler’s growth, the potential of AI and Zero Trust solutions, and the company’s strategic initiatives to drive enterprise expansion.

Conclusion

Zscaler, Inc. Summary: Zscaler’s Q4 2024 performance highlights its strategic focus on AI integration and Zero Trust security. While macroeconomic challenges persist, the company’s innovative solutions and market leadership position it well for future growth. Investors should watch for continued traction in AI and Zero Trust adoption and stabilization in key verticals.

Tags: EARNINGSZscaler
Previous Post

Asana, Inc. Q2 2025 Earnings Highlights

Next Post

Intel’s Financial Troubles: A Blow to Biden’s Chip Strategy

Recommended For You

Worthington Steel Q1: Sales Up, Profit Rises on Direct Volumes

by Team Lumida
2 weeks ago
person grinding pipe steel wool photography

Key Takeaways Powered by lumidawealth.com Revenue rose 5% year‑over‑year to $872.9M and first‑quarter net income increased to $36.8M ($0.72/share); adjusted EPS was $0.77. Direct tons sold climbed ~6% (Sitem...

Read more

JD Sports Reports Revenue Rise, Profit Dip

by Team Lumida
2 weeks ago
JD Sports Reports Revenue Rise, Profit Dip

Key Takeaways Powered by lumidawealth.com Revenue rose 20% year‑over‑year at constant currency to £5.94 billion for the period ended Aug. 2. Adjusted pretax profit fell to £351 million from...

Read more

Cracker Barrel Shares Tumble After First Earnings Report Since Failed

by Team Lumida
3 weeks ago
Cracker Barrel Shares Tumble After First Earnings Report Since Failed

Key Takeaways Powered by lumidawealth.com Cracker Barrel shares fell 9% to $45.10 after projecting 4-7% guest traffic decline and revenue of $3.35-3.45 billion for fiscal year The company expects...

Read more

TSMC’s August Sales Climb 34% in Latest Sign of Solid AI Demand

by Team Lumida
4 weeks ago
Taiwan Exports Surge 23.5% in June: AI Demand Fuels Massive Growth

Key Takeaways Powered by lumidawealth.com Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 34% increase in August revenue, reaching NT$335.8 billion ($11.1 billion). The strong sales reflect sustained global demand...

Read more

GameStop Sales, Profit Rise on Collectibles and Hardware Growth

by Team Lumida
4 weeks ago
black android smartphone on black textile

Key Takeaways Powered by lumidawealth.com GameStop’s Q2 revenue rose 22% to $972.2 million, driven by strong sales in collectibles, hardware, and accessories. Profit surged to $168.6 million (31 cents...

Read more

GitLab Boosts Profit Outlook and Beats Q2 Estimates; CFO Departs for Snowflake

by Team Lumida
1 month ago
Gitlab application screengrab

Key Takeaways Powered by lumidawealth.com GitLab raised its full-year adjusted profit forecast after delivering a strong second quarter that surpassed Wall Street expectations. The company beat Q2 estimates on...

Read more

Figma Revenue Soars 41%, But Profit Miss Sinks Stock in First Post-IPO Report

by Team Lumida
1 month ago
a black cell phone

Key Takeaways Powered by lumidawealth.com Figma reported a strong 41% jump in Q2 revenue to $249.6 million, driven by robust growth in large enterprise customers. Despite the impressive top-line...

Read more

Salesforce Beats Earnings But Stock Slips on Weak Outlook and AI Monetization Fears

by Team Lumida
1 month ago
Salesforce Q2 FY25 Earnings Highlights: Strong Growth Led by Integrating AI Solutions

Key Takeaways Powered by lumidawealth.com Salesforce beat Wall Street expectations for Q2 revenue and profit, driven by 11% growth in its core subscription business. Despite the beat, the stock...

Read more

Alibaba’s AI Boom Sparks $50B Rally, Outshining E-Commerce Competition

by Team Lumida
1 month ago
Why Alibaba’s $2.8 Billion AI Investment Could Shake Up the Market

Key Takeaways Powered by lumidawealth.com Stock surge: Alibaba shares jumped 19%+ in Hong Kong, adding over $50B in market cap — its biggest intraday rally since 2022. AI momentum:...

Read more

Dell Raises Full‑Year Outlook, Third‑Quarter View Mixed

by Team Lumida
1 month ago
silver laptop on brown wooden table

Key Takeaways Powered by lumidawealth.com Dell lifted full‑year revenue guidance to $105B–$109B (previously $101B–$105B) and nudged FY EPS midpoint to $9.55 (+$0.10). July-quarter revenue hit $29.78B (+19% YoY) and...

Read more
Next Post
a close up of a hard drive on a surface

Intel's Financial Troubles: A Blow to Biden's Chip Strategy

Nvidia Loses $220 Billion: What It Means for Your Investments

Nvidia, Dollar Tree, and Hormel Foods Tumble in Premarket; Gitlab Surges

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

OpenAI Hack: Why AI Companies Are Prime Targets for Cyberattacks

AI Race Disrupted: DeepSeek’s Efficient Model Challenges Silicon Valley’s High-Cost Strategy

January 28, 2025
Fed Signals Rate Cut: What It Means for Your Investments

Fed Signals Rate Cut: What It Means for Your Investments

July 28, 2024
Inflation Eases: Will Powell Signal Rate Cuts Soon?

US Futures Soar: What Powell’s Congress Testimony Could Mean for Investors

July 9, 2024

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018