Zscaler - All clear for growth?
Here's why.
1. Revenue continued to grow
![Zscaler Q2'23 Supplemental Financial Information](https://sgsnsimg.moomoo.com/102263458/editor_image/42da41d506473cf1b23d03461dae41a9.png/bigmoo)
Revenue continued to grow 52% YoY for Q2'23. Versus the preceding quarter, it was up by 9%.
2. Stable gross margins
![Zscaler Q2'23 Supplemental Financial Information](https://sgsnsimg.moomoo.com/102263458/editor_image/de41f7461a03336dbe2e9f6c9053c3c2.png/bigmoo)
Gross margins stayed stable. within the band of 77-78% for GAAP gross margins. Non-GAAP gross margins were also within the band of 80-81%.
3. Operating losses narrow
![Zscaler Q2'23 Supplemental Financial Information](https://sgsnsimg.moomoo.com/102263458/editor_image/1b791f19007d3db396a1b2226c94708b.png/bigmoo)
Operating losses narrowed down from USD 83.9 million to USD 65.2 million. The latest quarter operating margin is -16.83%, an improvement from -19.43% obtained in the preceding quarter.
4. Target to achieve a positive operating margin in 2H'23
![Zscaler Q2 2023 Earnings Call – March 2, 2023](https://sgsnsimg.moomoo.com/102263458/editor_image/568423f586ff3bb18673f603a4223b3e.png/bigmoo)
As tech companies scramble to reach operating profitability, the same applies to Zscaler. For FY 23, the management expects a continuous improvement in operating efficiency to achieve a full-year operating margin of 13.7%.
However, stock prices plunged as billings growth was under analyst estimates. So what do you think? Are the results good? Or is Wall Street asking too much?
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The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
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