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Zscaler Inc. (ZS-4.37%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in revenue to $647,900,000 from $524,999,000 in the same quarter the previous year. This increase is attributed to an expansion in the customer base and additional subscriptions from existing customers.
Cost of revenue for the quarter was $148,498,000, representing 23% of revenue, compared to 22% in the same quarter of the previous year. The increase in cost ratio is due to expanded use of the cloud platform by existing and new customers.
The company reported a gross profit of $499,402,000 for the quarter, compared to $407,800,000 in the previous year, with the increase attributed to higher revenue.
Operating expenses increased to $539,542,000 from $453,257,000, primarily due to higher sales and marketing expenses and increased research and development costs.
Net loss for the quarter was $7,724,000, compared to a net loss of $28,469,000 in the previous year. The reduction in net loss is attributed to increased revenue and a tax benefit from the release of a valuation allowance on U.K. deferred tax assets.
Cash provided by operating activities was $179,433,000, while cash used in investing and financing activities was $201,142,000 and $25,800,000, respectively.
Zscaler had a working capital of $2,880,200,000 as of January 31, 2025. The company acknowledges its dependence on continued customer growth and retention to meet future financial objectives.
The filing also details various financial agreements and the company's strategic focus on expanding its global data center network and enhancing its cloud platform capabilities.
Zscaler continues to focus on expanding its customer base and increasing sales through its channel partners, highlighting its dependence on these relationships for future growth.
The company identified risks related to competition, technological changes, and compliance with international regulations that could impact future operations.
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 March 10, 2025. To report an error, please email earnings@qz.com.