Q4 2024 Zscaler Inc Earnings Call Transcript

Sep 03, 2024 / 08:30PM GMT

Transcript 10-K8-K

Key Points

Positve

Revenue grew 30% year over year, reaching $593 million in Q4.
Achieved a new milestone of $1 billion in quarterly bookings in Q4.
Free cash flow margin reached a record 27% for the full year.
Customer adoption of the Zero Trust platform is stronger than ever, securing 47 million users across nearly 8,700 customers.
Emerging products contributed approximately 22% of new and upsell business in fiscal '24, up from 18% in fiscal '23.

Negative

Ongoing customer scrutiny of large deals continues to be a challenge.
Sales productivity improvements are expected to be stronger in the second half of fiscal '25, indicating a slower start.
The macroeconomic environment remains challenging, impacting spending decisions.
Increased investment in cloud and AI infrastructure will result in higher CapEx, impacting free cash flow margins.
The competitive landscape remains intense, with pressure on pricing and the need to demonstrate ROI and cost savings to close deals.

Operator

Good day, everyone, and thank you for standing by. Welcome to Zscaler fourth quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

Now, I will pass the call over to the Vice President, Investor Relations and Strategic Finance, Ashwin Kesireddy. Please go ahead.

Ashwin Kesireddy

Zscaler, Inc. - Vice President, Investor Relations and Strategic Finance

Good afternoon, everyone, and welcome to the Zscaler fourth quarter fiscal year 2024 earnings conference call. On the call with me today are Jay Chaudhry, Chairman and CEO; and Remo Canessa, CFO.

Please note we have posted our earnings release and a supplemental financial schedule to our Investor Relations website. Unless otherwise noted, all numbers we talk about today will be on an adjusted non-GAAP basis. You will find the reconciliation of GAAP to the non-GAAP financial measures in our earnings release.

I'd like to remind you that today's discussion will contain forward-looking statements, including, but not limited to, the

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