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EX - 99.1 2 zs - 01312021_991.htm EX - 99.1 Second Quarter Highlights ● • Revenue grows 55 % year - over - year to $ 157.0 million Calculated billings grows 71 % year - over - year to $ 232.0 million Deferred revenue grows 60 % year - over - year to $ 446.8 million • GAAP net loss of $ 67.5 million compared to GAAP net loss of $ 29.2 million on a year - over - year basis Non - GAAP net income of $ 14.0 million compared to non - GAAP net income of $ 13.5 million on a year - over - year basis Zscaler Reports Second Quarter Fiscal 2021 Financial Results SAN JOSE , California - February 25 , 2021 - Zscaler , Inc. ( Nasdaq : ZS ) , the leader in cloud security , today announced financial results for its second quarter of fiscal year 2021 , ended January 31 , 2021 . " Businesses are accelerating their digital transformation , and this drove our strong second quarter results , " said Jay Chaudhry , Chairman and CEO of Zscaler . " Our customers are turning to Zscaler's Zero Trust Exchange to implement Zero Trust architecture to protect users , workloads and applications , and improve user experience . With strong momentum in our business , we will continue to aggressively invest to pursue our large market opportunity . " Second Quarter Fiscal 2021 Financial Highlights Exhibit 99.1 • Revenue : $ 157.0 million , an increase of 55 % year - over - year . • Income ( loss ) from operations : GAAP loss from operations was $ 53.9 million , or 34 % of total revenue , compared to $ 30.3 million , or 30 % of total revenue , in the second quarter of fiscal 2020. Non - GAAP income from operations was $ 14.8 million , or 9 % of total revenue , compared to $ 12.4 million , or 12 % of total revenue , in the second quarter of fiscal 2020 . ● • Net income ( loss ) : GAAP net loss was $ 67.5 million , compared to $ 29.2 million in the second quarter of fiscal 2020. Non - GAAP net income was $ 14.0 million , compared to $ 13.5 million in the second quarter of fiscal 2020 . ● • Cash flow : Cash provided by operations was $ 30.4 million , or 19 % of revenue , compared to $ 5.4 million , or 5 % of revenue , in the second quarter of fiscal 2020. Free cash flow was $ 18.0 million , or 11 % of revenue , compared to negative $ 1.9 million , or negative 2 % of revenue , in the second quarter of fiscal 2020. The free cash flow in the second quarter of fiscal 2020 was impacted by a $ 15.0 million cash payment as a result of a legal settlement agreement . Excluding this payment , free cash flow would have been $ 13.1 million , or 13 % of revenue . • Deferred revenue : $ 446.8 million as of January 31 , 2021 , an increase of 60 % year - over - year . ● Net income ( loss ) per share : GAAP net loss per share was $ 0.50 , compared to $ 0.23 in the second quarter of fiscal 2020. Non GAAP net income per share was $ 0.10 for both the second quarter of fiscal 2021 and 2020 . Cash , cash equivalents and short - term investments : $ 1,444.7 million as of January 31 , 2021 , an increase of $ 74.2 million from July 31 , 2020 . Recent Business Highlights • Launched a security assessment program designed to help organizations assess the SolarWinds supply - chain attack , analyze potential impact on their organizations , and conform adherence to Zscaler's recommended best practices . Recognized as the only Leader in the Gartner Magic Quadrant for Secure Web Gateways ( December 2020 ) . Zscaler was positioned furthest in " Completeness of Vision " and highest in " Ability to Execute " among all 12 vendors evaluated in the report . This marks the 10th consecutive year Zscaler has been named a Leader in the Gartner Magic Quadrant for Secure Web Gateways . 1