Zscaler's revenue and expenses trends in Q1 2025 are as follows:
- Revenue Growth: Zscaler experienced a significant revenue increase, with a 23% year-over-year growth in Q2 fiscal 2025, reaching $647.9 million12. This growth is attributed to the expanding customer base and additional subscriptions from existing customers4.
- Operating Expenses: The company's operating expenses also increased, with the operating expenses for Q1 2025 not available. However, the operating expenses for Q2 2025 were higher than the previous year, primarily due to increased sales and marketing expenses and research and development costs4. This indicates a trend of growing operational costs alongside revenue growth.
- Profitability: Despite the revenue growth, Zscaler reported a GAAP net loss of $7.7 million in Q2 2025, which is an improvement from the $28.5 million loss in the same period the previous year12. The GAAP loss from operations was $40.1 million, or 6% of revenue3. Non-GAAP net income rose to $127.1 million, up from $99.4 million in the same quarter last year12. This suggests that while the company is improving its profitability, it still faces challenges in achieving full profitability.
In conclusion, Zscaler demonstrated strong revenue growth in Q1 2025, but faced ongoing profitability challenges as indicated by the GAAP net loss. The company's strategic focus on expanding its customer base and introducing new solutions like Zero Trust Segmentation is likely contributing to its growth, while the increase in operating expenses reflects the costs associated with scaling the business.