{
  "content": "Zscaler's net dollar retention rates for the last two quarters are as follows:\n\n- Q3 2025 (trailing 12 months ended April 30, 2025): **114%**  \n- Q2 2025 (trailing 12 months ended January 31, 2025): **115%**  \n\nThese figures reflect Zscaler's ability to retain and expand recurring revenue from existing customers over the respective periods [#eaf60040].",
  "sourceMap": {
    "#eaf60040": {
      "content": "### We calculate our dollar-based net retention rate as follows:\n\nTable of Contents\nInvesting in Business Growth\nSince our founding, we have invested significantly in growing our business. We intend to continue (i) investing in our\nresearch and development organization and our development efforts to offer new solutions on our cloud platform and (ii)\ndedicating resources to update and upgrade our existing solutions. In addition, we expect our general and administrative expenses\nto increase in absolute dollars in the foreseeable future, as we continue to operate as a public company, and address any legal\nmatters and related accruals, as further described in Note 10, Commitments and Contingencies, of the unaudited condensed\nconsolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.\nWe also intend to continue to invest significantly in sales and marketing to grow and train our sales force, broaden our brand\nawareness and expand and deepen our channel partner relationships. While these planned investments will increase our operating\nexpenses in the short term, we believe that over the long term these investments will help us to expand our customer base and\ngrow our business. We also are investing in programs to increase recognition of our brand and solutions, including joint marketing\nactivities with our channel partners and strategic partners.\nWhile we expect our operating expenses to increase in absolute dollars in the foreseeable future as a result of these\nactivities, we intend to balance these investments in future growth with a continued focus on managing our results of operations\nand investing judiciously. In the long term we anticipate that these investments will positively impact our business and results of\noperations.\nKey Business Metrics and Other Financial Measures\nWe review a number of operating and financial metrics, including the following key metrics, to measure our performance,\nidentify trends, formulate business plans and make strategic decisions.\nDollar-Based Net Retention Rate\nWe believe that dollar-based net retention rate is an indicator to measure the long-term value of our customer relationships\nbecause it is driven by our ability to retain and expand the recurring revenue generated from our existing customers. Our dollar-\nbased net retention rate compares the recurring revenue from a set of customers against the same metric for the prior 12-month\nperiod on a trailing basis. Because our customers have repeat buying patterns and the average term of our contracts is more than\n12 months, we measure this metric over a set of customers who were with us as of the last day of the same reporting period in the\nprior fiscal year. For the trailing 12 months ended January 31, 2025 and 2024, the dollar-based net retention rate was 115% and\n117%, respectively.\nWe calculate our dollar-based net retention rate as follows:\nDenominator: To calculate our dollar-based net retention rate as of the end of a reporting period, we first establish the ARR\nfrom all active subscriptions as of the last day of the same reporting period in the prior fiscal year. This effectively represents\nrecurring dollars that we expect in the next 12-month period from the cohort of customers that existed on the last day of the same\nreporting period in the prior fiscal year.\nNumerator: We measure the ARR for that same cohort of customers representing all subscriptions based on confirmed\ncustomer orders booked by us as of the end of the reporting period.\nDollar-based net retention rate is obtained by dividing the numerator by the denominator.",
      "pageNumber": 41,
      "excerpt": "For the trailing 12 months ended January 31, 2025 and 2024, the dollar-based net retention rate was 115% and 117%, respectively.",
      "documentMetadata": {
        "id": "eaf63939-0da6-4fc7-ba06-adbd46e546a9",
        "documentCategory": "interim-report",
        "date": "2025-03-10",
        "description": "This document is the Form 10-Q quarterly report filed by Zscaler, Inc. for the second fiscal quarter ended January 31, 2025. It includes unaudited condensed consolidated financial statements such as balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows. The report also contains management's discussion and analysis of financial condition and results of operations, quantitative and qualitative disclosures about market risk, controls and procedures, legal proceedings, risk factors, unregistered sales of equity securities, use of proceeds, and exhibits. The filing provides detailed financial data, forward-looking statements, and regulatory compliance information for the quarter.",
        "fiscalQuarter": 2,
        "fiscalYear": 2025,
        "companyName": "Zscaler, Inc.",
        "tickers": [
          "ZS"
        ]
      }
    }
  }
}