Zscaler, Inc. has recently released its 10-K report, providing a comprehensive insight into the company's financial performance and operations. Zscaler operates as a cloud security company, offering solutions for secure access to externally managed applications, digital experience measurement, posture control, and vulnerability scanning. The company serves customers across various industries, including airlines, financial services, healthcare, and technology.
In the 10-K report, Zscaler highlighted its revenue growth over recent years. For fiscal 2024, the company reported revenue of $2,167.8 million, a significant increase from $1,617.0 million in fiscal 2023 and $1,090.9 million in fiscal 2022. Despite the revenue growth, Zscaler has incurred net losses in all annual periods since its inception. The net losses for fiscal 2024, fiscal 2023, and fiscal 2022 were $57.7 million, $202.3 million, and $390.3 million, respectively.
The report also discusses the impact of macroeconomic conditions on Zscaler's business. Factors such as high inflation, high interest rates, geopolitical conflicts, and the COVID-19 pandemic have caused uncertainty in the company's business. Zscaler has observed customer scrutiny and elongated approval processes for transactions, particularly for larger deals, due to the uncertain economic environment.
Zscaler emphasized its focus on increasing the number of customers and expanding its relationship with existing customers. As of July 31, 2024, the company had over 8,650 customers across major geographies, with approximately 35% of the Forbes Global 2000 as customers. The company aims to continue growing its customer base and investing significantly in sales and marketing to engage prospective customers and increase brand awareness.
Moreover, Zscaler provided key business metrics and non-GAAP financial measures to evaluate its operating performance. The company measures its dollar-based net retention rate, which was 115% for the trailing 12 months ended July 31, 2024. Additionally, Zscaler presented non-GAAP financial measures such as non-GAAP gross profit, non-GAAP income from operations, and free cash flow to provide consistency and comparability with past financial performance.
The market has reacted to these announcements by moving the company's shares 3.1% to a price of $166.71. For the full picture, make sure to review Zscaler's 10-K report.
