“Looking at the last two years, I do not anticipate any significant changes in our free cash flow margin and expect it to remain above 20%.”

In context

“Remo Canessa (CFO): Yes. Over the past two years, our free cash flow has consistently remained above 20%. For fiscal year '23, our guidance reflects the same expectation, which should align with what we've achieved in the past two years being over 20%. Zscaler is a highly efficient company. When we consider our cloud capital expenditures, these typically range in the high single digits per quarter, which is quite low. We maintain high gross margins and strong overall operating profitability. A notable aspect of our cash flow is our annual billing cycle, with billing periods ranging from 10 to 14 months. This places us in a solid position with an efficient model. Looking at the last two years, I do not anticipate any significant changes in our free cash flow margin and expect it to remain above 20%.”