Zscaler Powers Ahead: Record-Breaking Q2 Results Showcase Pioneering Zero Trust Architecture
San Jose, CA - March 25, 2025 - Zscaler, a leading provider of cloud-based security solutions, has released its second quarter earnings report for fiscal year 2021. The results are nothing short of impressive, with the company posting record-breaking revenue growth and profitability.
In his opening remarks on the conference call, Chairman and CEO Jay Chaudhry highlighted the significant improvements in the company's go-to-market execution, which have resulted in increased sales productivity, double-digit new and upsell business growth, and lower sales attrition. "Our outstanding Q2 results demonstrate the improvements in our go-to-market execution against a backdrop of growing customer demand for our platform," Chaudhry said.
One of the key highlights from the quarter was the acceleration in billings, which grew by 23% year-over-year and came in above the high end of guidance. Revenue also grew by 23%, with both metrics exceeding expectations. The company's annual recurring revenue (ARR) increased to over $2.7 billion, a 23% year-over-year growth, while its net retention rate (NRR) improved to 115%. Chaudhry expects the ARR to reach $3 billion or more by the end of the fiscal year.
Zscaler's pioneering Zero Trust architecture has been at the forefront of the company's success. By eliminating lateral propagation of threats and reducing attack surface, Zscaler's platform enables customers' workforces to securely access applications wherever they reside. In contrast to vendors marketing SASE built on SD-WANs, which can worsen the issue of ransomware attacks, Zscaler has gone beyond SASE by pioneering its Zero Trust Exchange built on true Zero Trust architecture.
Building on this success, Zscaler expanded its platform to secure workloads, including IoT, OT devices, B2B users, and systems. The company is now elevating the concept of Zero Trust to a new standard that it calls Zero Trust Everywhere. This vision envisions a world where customers can be Zero Trust every year by ensuring that users are untrusted and never put on the corporate network, workloads are untrusted and can communicate only through Zscaler's exchange, and branch offices, factories, warehouses, or IoT, OT devices are treated as islands of their own.
With the upcoming hardware refresh cycle, CXOs are increasingly looking for ways to eliminate the legacy security stack, including firewalls, VPNs, SD-WANs, and more. Zscaler is well-positioned to capitalize on this trend with its innovative Zero Trust architecture and expanded platform capabilities.
