Zscaler Reports 23% Revenue Growth in Q2 Fiscal 2025

Zscaler released its financial results for the second quarter of fiscal 2025, showing higher revenue and earnings than anticipated by analysts. The company also updated its outlook for the remainder of the fiscal year based on these results.

For the quarter ending in early 2025, Zscaler reported revenue of $647.9 million, reflecting a 23% increase compared to the same period the previous year. The company’s non-GAAP net income per share reached $0.78, surpassing the consensus analyst estimate of approximately $0.69. Billings for the quarter totaled $742.7 million, which exceeded internal forecasts.

Zscaler’s annual recurring revenue for the quarter was reported at over $2.7 billion, also representing a 23% year-over-year increase. The company’s GAAP net loss for the quarter was $7.7 million, narrowing from a loss of $28.5 million in the same quarter the prior year. These results contributed to a revised full-year revenue guidance of $2.640 billion to $2.654 billion.

Guidance for the third quarter of fiscal 2025 was set at revenue between $665 million and $667 million. In addition, Zscaler provided a full-year adjusted earnings per share outlook of $3.04 to $3.09. These updates reflect the company’s expectations for continued growth in the coming quarters.

What the numbers show

• Q2 fiscal 2025 revenue: $647.9 million, up 23% year-over-year
• Non-GAAP net income per share: $0.78, above $0.69 analyst estimate
• Annual recurring revenue: over $2.7 billion, up 23% year-over-year
• Q2 billings: $742.7 million, exceeding forecasts
• Q2 GAAP net loss: $7.7 million, down from $28.5 million a year earlier

Following the earnings announcement, Zscaler’s stock experienced mixed trading activity. According to published reports, the stock initially fell despite the company exceeding both earnings and sales estimates. However, subsequent trading on Nasdaq saw the stock rise by nearly 6% after the release of the financial results.

Analyst expectations for the quarter had been set at approximately $634 million in revenue and $0.69 in non-GAAP earnings per share. Zscaler’s results surpassed both benchmarks, with higher revenue, billings, and net income per share than anticipated. The company’s updated guidance for the remainder of fiscal 2025 reflects these stronger-than-expected results.

Zscaler’s financial report included updated guidance for the next quarter and the full fiscal year. The company projected third-quarter revenue in the range of $665 million to $667 million and adjusted full-year earnings per share of $3.04 to $3.09. These projections were based on the company’s performance in the first half of the fiscal year.

The company’s financial disclosures indicate ongoing growth in its core business metrics. Both annual recurring revenue and billings showed double-digit year-over-year increases, while net losses narrowed compared to the prior year. The company’s revised guidance suggests it anticipates continued momentum in the upcoming quarters.

* This article is based on publicly available information at the time of writing.