Zscaler Stock Earnings Reports

Zscaler reported a strong Q3 FY2025 with revenue of $678M (+23% YoY), ARR of approximately $2.9B (23% YoY) and record TCV bookings above $1B. RPO is nearly $5B ($4.978B, +30% YoY) and calculated billings were $785M (+25% YoY). The business showed robust large-account traction (642 customers >$1M ARR; 3,363 customers >$100k ARR) and a 12‑month dollar‑based net retention rate of 114%. Management highlighted platform momentum—50M+ users secured, extensive telemetry (100T transactions processed; >60B threats blocked) and a growing AI/data advantage—driving three high-growth product pillars: Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations (combined ARR approaching $1B). New commercial initiatives (Z Flex and the cost‑taker program) are gaining early traction (Z Flex >$65M TCV in the quarter). Zscaler announced the Red Canary acquisition (~$675M) to accelerate SecOps, expects to close in Aug 2025, and will settle convertible debt in Q4. Management raised full‑year FY25 guidance across metrics and provided Q4 guidance: revenue $705–707M, gross margin ~80%, operating profit ~$152–154M; full‑year revenue $2.659–2.661B, billings $3.184–3.189B, and FCF margin ~25.5–26%. Leadership changes: Kevin Rubin named CFO (Remo will advise through year end). Key investor takeaways: strong top‑line growth at scale, healthy profitability and cash generation, accelerating platform expansion into AI/SecOps, and continued investment to drive long‑term ARR upside (management reiterates goal toward $5B ARR).