Zscaler Inc (NASDAQ:ZS) Q4 2019 Earnings Conference Call - Final Transcript
Sep 10, 2019 • 04:30 pm ET
[Operator Instructions] And we'll take our first question from Brad Zelnick with Credit Suisse. Please go ahead.
Great, thank you so much. Can you guys hear me?
Hello. Excellent. Congrats on a fantastic year and it's excellent, excellent. So congrats on a fantastic year. And it's great to see your sustained growth above 50% if we make the proper adjustments. Jay, I wanted to ask you about your comment about large deals taking longer to close. What are the proof points that suggest to you that this may be due to macro deterioration versus perhaps execution issues and what gives you the confidence. This isn't a change in the competitive dynamic for what you're selling.
Yes. So we deal with a large number of deals, our pipeline has been growing. The comment we made was that some of the larger deals took longer. Talking about macro versus competition. I can tell you that if we analyze our top 50 deals, which we did, we really see any comparative real competition from firewall guys or any -- other guys. So our competitive rate remains very, very strong. On the macro level, we haven't seen any significant things to really say that macro is playing a role in it. We do believe that as the large number of reps are being hired, they all need to go through a bit more sophisticated sales methodology, sales framework and the like.
So we can keep on scaling the successful execution we have been doing so far. So not worried about any competitive pressures. No clear indications on the macro, though, that kind of remains to be seen as everyone does talk about them, but we are excited that we have a new CRO, who can help us further scale the kind of work we had done before to the next level.
Congrats on the hire. And just a follow-up on this topic with Remo. If we look at long-term deferreds, it would seem there as well that duration might be shrinking a bit from what it had been last quarter. Is this due to the same dynamics that Jay is discussing or are there other factors to consider as well. What's baked into your guidance for the full year, is it more of what you're seeing exiting fiscal '19 or is it assuming what you saw on average throughout the entire year? Thank you.
Remo E. Canessa
Yeah Thank you, Brad. My guidance basically is what we've seen through the entire year based on duration. The -- if you take a look at total deferred revenue, it grew 53%, short-term deferred revenue grew 57%. And what we have in long-term deferred revenue. We've got that public sector deal which transfers over from long-term to short-term. I wouldn't think anything different related from a duration perspective in my guidance for fiscal '20.
Great, thanks so much. We'll see you next week.
Remo E. Canessa
We'll take our next question from Alex Henderson with Needham & Company. Please