Zscaler Earnings: Setting Up Future Billings Momentum Amid A Tough Environment

Mar. 06, 2023 2:23 PM ETZscaler, Inc. (ZS) StockZS8 Comments

Summary

  • Zscaler had a strong beat and raise across the board, with non-GAAP and GAAP operating margins expanding.
  • However, the market got spooked by a higher than seasonal drop in Billings growth, but management's "ramp-style" contracts will produce Billing's momentum when they mature.
  • The company continues to show resilience in a tough macro environment, and investors have much to like in the coming year, with free cash flow improving.
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This article was written by

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Joe Albano is a tech insider with a background and education in electrical and software engineering. He has a unique understanding of current technology and innovation trends as well as what companies are best positioned for future growth across all areas of tech, including AI, as he has called it accurately over the last several years.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ZS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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