Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB)

By Brad FreemanJune 14, 2024Posted in Stock Insights

Third-Party Content. Provided for informational purposes only. Not investment advice or a recommendation to buy or sell any security. See disclosure here.

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024

Plus/Max subs can expect a full review of Zscaler’s report & MongoDB’s report at some point early next week along with coverage of Uber, Airbnb and Mastercard investor conferences. I simply ran out of hours in the day to thoughtfully review these two prints. Zscaler looked excellent; MongoDB’s guide was underwhelming. Stay tuned for a lot more detail in the near future.

Zscaler ($ZS)

Results:

Beat revenue estimates by 3.2% & beat guidance by 3.4%. Its 46.3% 3-year revenue compounded annual growth rate (CAGR) compares to 49.5% Q/Q & 51.6% 2 quarters ago.
Beat EBIT estimates by 22% & beat guidance by 23%.
Beat $0.65 EPS estimates & beat identical guidance by $0.23 each.
Beat FCF estimate by 58%.

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (2)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (3)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (4)

Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases

Fourth Quarter Guidance & Valuation:

Slightly beat Q4 revenue estimates.
Beat Q4 EBIT estimates by 1.4%.
Beat $0.67 EPS estimates by $0.02.

Zscaler trades for 56x this fiscal year’s earnings with earnings expected to grow by 70% Y/Y this year and 8% Y/Y next year.

Balance Sheet:

$2.25B in cash & equivalents.
$1.14B in senior notes.
No traditional debt.
Diluted share count rose 6% Y/Y; basic share count rose by 3.4% Y/Y.

Okta ($OKTA)

Results:

Beat revenue estimates by 2.1% & beat guidance by 2.2%. Its 35.0% 3-year revenue CAGR compares to 37.1% Q/Q & 40.6% 2 quarters ago.
Beat cRPO growth guide by 1.7%.
Beat FCF guide by 42%.
Beat EBIT estimate by 21.3% & beat guide by 22.0%.
Beat $0.55 EPS estimate & beat identical guidance by $0.10 each.

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (6)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (7)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (8)

Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases

Annual Guidance & Valuation:

Raised revenue guide by 1.4%, which beat by 1.1%.
Raised EBIT guide by 7.6%, which beat by 6.9%.
Raised FCF guide by 6.3%, which beat by 6.0%.
Raised $2.27 EPS guide by $0.10, which beat by $0.11.

Trades for 39x forward earnings. Earnings are expected to grow by 50% Y/Y this year & 19% Y/Y next year.

Balance Sheet:

$2.3B in cash & equivalents.
$1.2B in convertible notes; no debt.
Share count +3.8% Y/Y.

UiPath ($PATH)

Results:

Beat revenue estimate by 0.6% & beat guide by 0.8%.
Slightly missed ARR guidance.
Missed EBIT estimate & missed same guide by 8.4% each.
Beat 85.5% GPM estimate by 50 bps.
The company’s old founder/CEO is stepping back in to replace the current CEO.
118% dollar-based net revenue retention vs. 119% Q/Q & 122% Y/Y.

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (10)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (11)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (12)

Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases

Annual Guidance:

Lowered annual revenue guide by 5.3%, which missed by 5.3%.
Lowered annual ARR guide by 3.8%.
Cut annual $245 million EBIT guide in half, which sharply missed estimates.

Trades for ~40x EPS with -32% Y/Y EPS growth expected & 25% Y/Y EPS growth next year expected.

Balance Sheet:

~$2B in cash & equivalents.
No debt.
Share count rose by 2.1% Y/Y.

Dell ($DELL)

Results:

Beat revenue estimates by 2.5% & beat guide by 2.5%.
Beat $1.29 EPS estimate by $0.03 & beat lower guidance by $0.17.
Slightly missed EBIT estimates; missed 22.8% GPM estimate by 120 bps.

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (14)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (15)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (16)

Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases

Annual Guidance & Valuation:

Raised $93 billion annual revenue guide by 2.7%, which beat estimates by 1.1%.
Raised $7.50 annual EPS guide by $0.15, which missed by $0.19. There was some concern from analysts about rapid AI server growth not leading to any EBIT growth at all. The Dell team called deals for these servers “competitive.”

Balance Sheet:

$5.8B in cash; $4.7B in short term financing receivables.
$1.3B in long term investments.
$25.5B in total debt.
Stock comp fell Y/Y to less than 1% of revenue.

MongoDB ($MDB)

Results:

Beat revenue estimate by 2.4% & beat guide by 2.9%. 25.7% 2-year revenue CAGR vs. 38.1% Q/Q and 46% 2 quarters ago.
Beat $25M EBIT estimate by $8M & Beat guide by $9M.
Beat $0.37 EPS estimate & beat same guide by $0.14 each.
Beat FCF estimate by 74%.

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (18)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (19)

Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (20)

Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases

Annual Guidance & Valuation:

Lowered annual revenue guide by 1.3%, which missed by 2.6%.
Lowered annual EBIT guide by 9.3%, which missed by 11.7%.
Lowered $2.38 EPS guide by $0.16, which missed by $0.21.
Next Q missed across the board.

Balance Sheet:

$2.1B in cash & equivalents.
$1.14B in senior notes.
Diluted share count rose by 4% Y/Y.

Disclaimer: Third party content is provided for informational purposes only and should not be construed as an offer to sell or a solicitation of an offer to buy or sell any security. Third party content is not intended to serve as a recommendation to buy or sell any security and is not intended to serve as investment advice. Third party content creators are not affiliated with BBAE Holdings LLC, (“BBAE”) Redbridge Securities LLC (“Redbridge Securities”) or BBAE Advisors LLC (“BBAE Advisors”). All investments involve risk, including the possibility of total loss of principal. For additional important information, please click here.

InsiderEdge™ – Top Sales and Top Purchases – June 14, 2024

By InsiderEdge™ by BBAE|June 14, 2024

InsiderEdge™ – Top Sales and Top Purchases – June 14, 2024

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Stock Market Nerd – Earnings Round-up – Zscaler ($ZS); Okta ($OKTA); UiPath ($PATH); Dell ($DELL); MongoDB ($MDB) – June 01, 2024 (2024)