Zscaler Inc (NASDAQ:ZS) Q3 2020 Earnings Conference Call - Final Transcript

May 28, 2020 • 04:30 pm ET


Zscaler Inc (NASDAQ:ZS) Q3 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Zscaler Third Quarter 2020 Earnings Conference Call. [Operator Instructions] After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today to Bill Choi. Please go ahead.

Bill Choi

Good afternoon, everyone and welcome to the Zscaler fiscal third quarter 2020 earnings conference call. On the call with me today are Jay Chaudhry, Chairman and CEO; and Remo Canessa, CFO. Please note that we have posted our earnings release and a supplemental financial schedule to our Investor Relations website. Unless otherwise noted, all numbers we talk about today will be on an adjusted non-GAAP basis. You will find a reconciliation of GAAP to the non-GAAP financial measures in our earnings release. For historical periods, the GAAP to the non-GAAP reconciliations can be found in the supplemental financial information.

I'd like to remind you that today's discussion will contain forward-looking statements, 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, remaining performance obligations, 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, including but not limited to the duration and impact of COVID-19 on our business, the global economy and the respective businesses of our customers, vendors and partners.

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, please see our filings with the SEC, as well as in today's earnings release.

I would also like to inform you that management will be attending the following upcoming virtual investor conferences, Cowen's TMT Conference tomorrow, Bank of America's Global Technology Conference on June 3rd, Baird's Consumer Technology and Services Conference on June 4th and the Morgan Stanley Thematic Conference on Zero Trust Architectures on June 25th. Presentations for these events will be webcast and the links will be available on our Investor Relations website.

Now, I will turn the call over to Jay.

Jay Chaudhry

Thank you, Bill and thank you for joining us. I hope everyone is staying healthy and safe during these unprecedented times. Our thoughts and prayers are with those who have been impacted. As you saw in the earnings release, we delivered very strong results for the third quarter and we are increasing our guidance for fiscal 2020. We've built the right cloud-native security platform for the cloud world and the digital transformation market driving our business as further accelerate combined with our improved sales execution, we are capitalizing on the market opportunities to take Zscaler beyond a $1 billion in annual revenue.

Zscaler was founded on the belief that in a