“earnings per share of $0.20 to $0.21, assuming approximately 146 million to 147 million fully diluted shares.”

In context

“Remo Canessa (CFO): Thank you, Jay. As Jay mentioned, we are pleased with the results for the third quarter of fiscal 2022. Revenue for the quarter was $287 million, up 63% year-over-year and up 12% sequentially. On a year-over-year basis, revenue growth exceeded 60% for the third straight quarter, driven by strong customer demand for our Zero Trust platform. ZPA product revenue was approximately 18% of total revenue, growing 87% year-over-year. From a geographic perspective, we had broad strength across our three major regions. The Americas represented 52% of revenue, EMEA was 33%, and APJ was 15%. APJ continues to be our fastest-growing region with revenue growth of 105% year-over-year. Our total calculated billings grew 54% year-over-year to $346 million, with billing duration comparable to a year ago and above the midpoint of our normal 10 to 14 months range. Our remaining performance obligations, or RPO, grew 83% from one year ago to $2.216 billion. The current RPO is 49% of the total RPO. Our strong customer retention rate and our ability to upsell the broader platform have resulted in a high dollar-based net retention rate, which was again above 125%. We had 288 customers paying us more than $1 million annually, up 77% from 163 in the prior year. I’m very pleased with the pace at which we are adding these $1 million ARR customers: we increased by 37 customers in the quarter. The continued strength in this metric speaks to our large enterprise focus and the strategic role we play in our customers’ digital transformation initiatives. We added 140 customers in the quarter paying us more than $100,000 annually, ending the quarter at 1,891 such customers. Turning to the rest of our Q3 financial performance, total gross margin of 80.6% was approximately flat quarter-over-quarter and year-over-year. Our total operating expenses increased 11% sequentially and 70% year-over-year to $204 million. Operating expenses as a percentage of revenue was 71% compared to 68% in the year-ago quarter, due to a partial return of T&E. Operating margin was 9% and free cash flow margin was 15%. We continue to expect data center CapEx to be around high-single-digit percent of revenue for the full year. We ended the quarter with over $1.66 billion in cash, cash equivalents, and short-term investments. Now, moving on to guidance and modeling points. As a reminder, these numbers are all non-GAAP, which excludes stock-based compensation expenses and related payroll taxes, amortization of debt discount, and amortization of intangible assets. We are once again increasing our guidance across all metrics. For the fourth quarter of fiscal 2022, we expect revenue in the range of $304 million to $306 million, reflecting a year-over-year growth of 54% to 55%; gross margins of 79%. I would like to remind investors that a number of our emerging products, including ZDX, Workload Segmentation, and CSPM, will initially have lower gross margins than our core products because we are more focused on time-to-market and growth rather than optimizing them for gross margins; operating profit in the range of $33 million to $34 million. We have more in-person events this quarter, including customer events, Zenith Live, and RSA conferences; net loss on other income of $500,000; income taxes of $3 million; earnings per share of $0.20 to $0.21, assuming approximately 146 million to 147 million fully diluted shares. For the full-year fiscal 2022, we are increasing our revenue guidance to approximately $1.078 billion or year-over-year growth of 60%, increasing calculated billings to a range of $1.425 billion to $1.430 billion or year-over-year growth of approximately 53%, increasing our operating profit to a range of $106 million to $108 million, increasing our earnings per share to a range of $0.64 to $0.65 assuming approximately 147 million to 148 million fully diluted shares; free cash flow of $215 million, reflecting free cash flow margin of approximately 20% for the full year. With a revenue growth outlook of 60% and free cash flow margin of 20%, we expect to operate at the Rule-of-80 for the full year. With customers increasingly adopting the broader platform with longer-term commitments, we plan to invest in capturing our large market opportunity. We have confidence in the durability of our business model, with very high contribution margins after the initial land and a proven ability to retain and upsell to our enterprise customer base. We will balance growth and profitability based on how our business is growing, but we will continue to prioritize growth, which we believe is in the best interest of our shareholders, employees, and customers.”