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Zscaler Inc. (ZS) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $627,955,000 from $496,703,000 in the same quarter the previous year. This growth is attributed to an increase in users and sales of additional subscriptions to existing customers.
Cost of revenue for the quarter was $141,462,000, representing 23% of revenue, compared to 22% in the same quarter of the previous year. This increase in cost ratio is due to higher data center and equipment-related costs.
The company reported a gross profit of $486,493,000 for the quarter, compared to $385,309,000 in the previous year, with a gross margin of 77%.
Sales and marketing expenses increased to $306,087,000 from $267,111,000, primarily due to increased employee-related expenses and marketing efforts.
Research and development expenses rose to $154,254,000 from $113,539,000, driven by increased headcount and investments in enhancing the cloud platform.
General and administrative expenses increased to $56,819,000 from $50,716,000, mainly due to higher employee-related costs.
Net loss for the quarter was $12,051,000, compared to $33,483,000 in the previous year. This improvement is attributed to increased revenue and interest income.
Interest income for the quarter was $30,048,000, up from $25,942,000 in the previous year, due to higher cash and investment balances.
Zscaler had a working capital of $3,393,780,000 as of October 31, 2024. The company continues to focus on expanding its customer base and enhancing its cloud platform.
The filing also details various financial activities, including cash flows from operating, investing, and financing activities, and the impact of foreign currency exchange rates on financial results.
The company acknowledges the competitive landscape and the importance of maintaining high-quality customer support to retain and expand its customer base.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Zscaler Inc. quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.