Zscaler Inc (NASDAQ:ZS) Q4 2019 Earnings Conference Call - Final Transcript

Sep 10, 2019 • 04:30 pm ET


Zscaler Inc (NASDAQ:ZS) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, everyone and welcome to the Zscaler's 4Q 2019 Earnings Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Mr. Bill Choi, Vice President of Investor Relations. Please go ahead, sir.

Bill Choi

Good afternoon, and thank you for joining us to discuss Zscaler's financial results for the fourth quarter of fiscal 2019. With me on the call are Jay Chaudhry, Chairman and CEO; and Remo Canessa, CFO. By now, everyone should have access to our earnings announcement. This announcement may also be found on our website in the Investor Relations section.

In addition, a supplemental financial schedule was posted to the Investor Relations section of our website earlier today. Let me remind you that we'll be making forward-looking statements during today's discussion, including, but not limited to, the Company's anticipated future revenue, calculated billings, operating performance, gross margin, operating expenses, operating income, net income, free cash flow, dollar-based net retention rate, income taxes, and earnings per share. These statements and other comments are not guarantees of future performance, but rather are subject to risk and uncertainty, some of which are beyond our control. Our actual results may differ significantly from those projected or suggested in any forward-looking statements.

These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties that could impact our future operating results and financial condition, please see our filings with the Securities and Exchange Commission, as well as in today's earnings release. Unless otherwise noted, all numbers we talk about today other than revenue will be on an adjusted non-GAAP basis.

Please refer to our earnings release on the Investor Relations portion of our website for a reconciliation of GAAP to the non-GAAP financial measures. For historical periods, the GAAP to the non-GAAP reconciliations can be found in the supplemental financial information referenced a few moments ago. I would also like to inform you that we will be hosting our Analyst Day, next week, on September 17 in conjunction with our Zenith Live Conference in Las Vegas. Zenith Live is our annual customer and partner Cloud Summit featuring keynote presentations and topic specific breakout regarding the transformation to a cloud first future. We will be webcasting both the Zenith Live keynotes and the Analyst Day program which you can access on the Events section of our IR website.

Now, I will turn the call over to Jay.

Jay Chaudhry

Thank you, Bill, and thank you, everyone for joining us on our call today. In Q4, we are pleased to announce that we delivered strong revenue and operating profit growth in the fourth quarter with positive free cash flow. For the quarter, our revenue grew 53% and billings grew 32% year-over-year against a very difficult comparison.

And for the full year, our revenue grew 59% and billings grew