Zscaler Reports First Quarter Fiscal 2020 Financial Results

Revenue grows 48% year-over-year to $93.6 million

Calculated billings grow 37% year-over-year to $88.3 million

Deferred revenue grows 49%year-over-year to $245.9 million

GAAP net loss of $17.1 million compared to GAAP net loss ofA$7.6 million on a year-over-year basis

Non-GAAP net income of $4.1 million compared to non-GAAP net income ofA$2.3 millionAon a year-over-year basis

SAN JOSE, Calif., Dec. 03, 2019 (GLOBE NEWSWIRE) -- Zscaler, Inc.A(Nasdaq: ZS), the leader in cloud security, today announced financial results for its fiscal first quarter of fiscal year 2020, ended October 31, 2019."We delivered strong revenue growth and non-GAAP profitability in Q1 while significantly investing in our business to pursue our large market opportunity. We are committed to scaling all elements of our go-to-market strategy, as we see enterprises increasingly transforming their network and security to realize the benefits of the cloud," said Jay Chaudhry, Chairman and CEO of Zscaler. "I am confident that our new sales leadership, coupled with our cloud-native security platform, is strengthening our foundation for the long-term growth of our business."First Quarter FiscalA2020AFinancial Highlights

Revenue:A$93.6 million, an increase ofA48%Ayear-over-year.

Income (loss) from operations: GAAP loss from operations wasA$18.3 million, orA20%Aof total revenue, compared to $8.7 million, orA14%Aof total revenue,Ain theAfirst quarter of fiscalA2019. Non-GAAP income from operations wasA$2.9 million, orA3%Aof total revenue, compared toA $1.2 million, orA2%Aof total revenue,Ain theAfirst quarter of fiscalA2019.

Net income (loss): GAAP net loss wasA$17.1 million, compared toA$7.6 millionAin theAfirst quarter of fiscalA2019. Non-GAAP net income wasA$4.1 million, compared to $2.3 millionAin theAfirst quarter of fiscalA2019.

Net income (loss) per share: GAAP net loss per share wasA$0.13, compared toA$0.06Ain theAfirst quarter of fiscalA2019.ANon-GAAP net income per share was $0.03, compared to $0.02 in the first quarter of fiscal 2019.

Cash flow: Cash provided by operations wasA$21.4 million, or 23% of revenue, compared to $11.0 million, or 17% of revenue,Ain theAfirst quarter of fiscalA2019. Free cash flow was $9.4 million, orA10%Aof revenue, compared to $5.2 million, or 8% of revenue, in theAfirstAquarter of fiscalA2019.

Deferred revenue: $245.9 million as of October 31, 2019, an increase of 49% year-over-year.

Cash, cash equivalents and short-term investments: $377.6 millionAas ofAOctober 31, 2019, an increase of $13.0 million from July 31, 2019.

Recent Business Highlights

Announced Zscaler B2B, a new solution that reduces the attack surface introduced by customer-facing applications. Built within a zero trust network access (ZTNA) architecture, Zscaler B2B enables enterprises to provide secure application access to their business customers and partners without exposing the applications to the internet.

Microsoft named Zscaler the first and only cloud security provider to be a certified partner in the Microsoft Networking Partner Program (NPP) for Office 365, which has stringent requirements for user performance. Microsoft only recommends NPP partners for Office 365 connectivity. The program is designed to offer Office 365 customers a set of partners whose deployment practices and guidance provide users a fast and secure user experience by aligning with Microsofta??s networking recommendations.

Partnered with Crowdstrike to provide joint customers with seamless protection across the cloud and the endpoint. Crowdstrikea??s AI-powered Threat Graph will integrate with Zscalera??s cloud security platform to provide customers with real-time threat detection and automated policy enforcement.

Zscaler was named a Leader in the Gartner Magic Quadrant for Secure Web Gateways for the ninth year in a row. The report positioned Zscaler furthest in completeness of vision and highest in ability to execute.

Zscaler achieved significant milestones in the U.S. Federal business. Zscaler Private Access (ZPA), a ZTNA service, earned Federal Risk and Authorization Management Program (FedRAMP) Ready status at the High Impact level. Zscaler was also added to the Department of Homeland Security Continuous Diagnostics and Mitigation Program Approved Products List.

Hosted Zenith Live Zscaler Cloud Summits in Las Vegas and Lisbon, Portugal.

Financial Outlook
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