Zscaler Inc (ZS, Financial) recently held its earnings announcement for the fiscal year 2023 fourth quarter. The company reported a strong close to the fiscal year, with a 43% revenue growth and 38% billings growth in Q4. For the full year, the revenue grew by 48% to $1.6 billion, and billings grew by 37% to over $2 billion. The company also set records in several other measures, including the highest number of $1 million ARR customers, record new pipeline for Q4, and record operating profit margin.
Financial Highlights
In Q4, Zscaler Inc (ZS, Financial) delivered a 43% revenue growth and 38% billings growth, with balanced growth across all verticals, customer segments, and geographies. For the full year, the company's revenue grew by 48% to $1.6 billion, and billings grew by 37% to over $2 billion. The company also achieved record billings in the quarter and set records across several other measures. The company added the highest number of $1 million ARR customers, generated a record new pipeline for Q4, and attained a record operating profit margin.
Customer Growth and Retention
Zscaler Inc (ZS, Financial) reported that it added the highest number of $1 million ARR customers and generated a record new pipeline for Q4. The company's innovation and customer obsession drove its net promoter score to exceed 80, which is more than two times the average for SaaS companies. This contributed to the company's high 90% gross retention rate. The company also announced that it doubled its annual recurring revenue from $1 billion to over $2 billion in seven quarters, reaching a milestone only a select handful of SaaS companies have achieved.
Market Opportunity
With every customer looking to adopt zero trust architecture in today's world of cloud, AI, and mobility, Zscaler Inc (ZS, Financial) believes it is in the early stages of capturing a large share of its $72 billion market opportunity. The company has its sights set on achieving its next goal of $5 billion in ARR. The company is on a mission to take zero trust everywhere to users, workloads, and OT systems and become the go-to platform for vendor consolidation, cost savings, increased business agility, and better cyber and data protection.
Looking Ahead
Zscaler Inc (ZS, Financial) is excited about the opportunities ahead. The company has a track record of building and growing new innovations like ZDX data protection and zero trust for workloads, and it is now turning its attention to AI. The company believes these new products will contribute increasingly to its future growth. The company's business value message is resonating in this challenging macro environment, and more customers are adopting its broader platform to consolidate multiple-point products. The company believes customers trust Zscaler more than any other provider for securing their zero trust journey.
