Good afternoon, everyone, and welcome to the Zscaler Fiscal Fourth Quarter and Full-year 2021 earnings conference call. On the call with me today are Jay Chaudhry, Chairman and CEO, and Remo Canessa, CFO. Please note that we have posted our earnings release and a supplemental financial schedule to our Investor Relations website. Unless otherwise noted, all numbers we discuss today will be on an adjusted non-GAAP basis. You will find a reconciliation of GAAP to the non-GAAP financial measures in our earnings release. I'd like to remind you that today's discussion will contain forward-looking statements, including, but not limited to, the Company's anticipated future revenue, calculated billings, operating performance, gross margin, operating expenses, operating income, net income, free cash flow, dollar-based net retention rate, future hiring decisions, remaining performance obligations, income taxes, earnings per share, our market share, and market opportunity. These statements and other comments are not guarantees of future performance, but rather are subject to risks and uncertainties, some of which are beyond our control, including but not limited to the duration and impact of COVID-19 on our business, the global economy, and the respective businesses of our customers, vendors, and partners, market adoption of our offerings, and our expectations regarding the development of the markets in which we compete. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties, please see our filings with the SEC, as well as in today's earnings release. We will upload a copy of today's prepared remarks to the IR website when we move to the Q&A segment of the call. Now I will turn the call over to Jay.

Thank you, Bill. We had a very strong quarter to close out spectacularly in Q4. We delivered growth of 57% in revenue and 70% in billings as customers embraced our expanded cloud platform to accelerate their digital transformation. Let me share a few highlights of fiscal 2021: our full-year revenue grew 56% to $673 million, and billings grew 70% to reach $934 million. We are seeing revenue growth across all verticals, customer segments, and geographies. 51% of revenue was from outside the United States. I'm very excited to see our ARR approaching $1 billion and pleased to note that our new annualized bookings and new logo acquisition accelerated throughout the year. All product pillars of our platform saw strong demand. Notably, ZPA revenue surpassed $100 million in fiscal 2021, growing 166% year-over-year. The increase in cyber security risks and accelerating digital transformation have heightened the need for our Zero Trust architecture. We're uniquely positioned to make businesses more competitive. We are the only cloud provider at scale with a proxy-based architecture to deliver Zero Trust security. Zscaler connects users only to applications, thus enforcing the core principle of Zero Trust architecture that reduces vulnerabilities and other cyber risks. Built from the start to enforce policy at the edge, as advocated by the SASE framework, our cloud spans 150 data centers with five-nines availability, providing fast and secure access to all applications. With a record number of seven-figure ACV deals in Q4, we now have over 200 customers with greater than $1 million in ARR. Over 5,600 enterprises, including 35% of the Fortune 500, trust Zscaler to secure their transformation journey. While the average Net Promoter Score of fast companies is 30, Zscaler's is 74, which is 2.5 times higher, demonstrating the value we provide. Now, I would like to discuss the financial services market segment. We made significant progress during the quarter and fiscal year. First, the financial services sector has become our top vertical. These companies are embracing the cloud and Office 365. Let me highlight three new customer wins in Q4 involving the purchase of ZIA and ZPA together. The first is a global bank adopting a Zero Trust strategy to protect over 100,000 employees with our services. They purchased every module we offer, including firewall, Sandbox, CASB, DLP, and browser isolation. Fast user experience and enhanced cybersecurity were key factors in our win. The second new logo win is a Fortune 500 asset management company securing over 30,000 employees. Lastly, a Fortune 500 insurance company purchased ZIA and ZPA for 26,000 employees to enable work-from-anywhere. These wins show that when companies are ready to embrace the cloud, Zscaler is the only cloud-native multi-tenant platform that meets their needs. With security as a major consideration, these financial services customers only considered a proxy architecture that can provide SSL inspection at scale. We now count eight of the top ten global banks and seven of the top ten insurance companies outside of China as our customers. Next, let me highlight our progress in the enterprise market segment, which includes organizations with 2,000 to 6,000 employees. We started focusing on this segment at the start of fiscal 2021, and the results have exceeded our expectations. This segment includes over 12,000 organizations, representing $8 billion of our serviceable market for user protection. The size of deals in the segment is growing as customers adopt more of our platform. I'm excited to see our first seven-figure upsell win in our enterprise segment, where the customer is buying all four pillars of our platform. Our ARR with this customer now exceeds $1.5 million, validating a significant opportunity in this market segment. To further penetrate, we are developing targeted marketing programs, significantly growing our sales team, and doubling down on our Summit Partner program to recruit and enable channel partners to drive further sales leverage. Lastly, we continue to invest to capture a large federal opportunity, with a sizable federal sales team and the highest FedRAMP certifications. We count over 100 government agencies and federal integrators as customers. In Q4 alone, we added over 20 new federal customers, including four with over $1 million in annual contract value, each purchasing ZIA and ZPA together. Driven by the President's recent Executive Order, we're seeing increased interest in our Zero Trust Exchange across all levels of the government. We are among a select group of companies chosen by NIST, our national standards body, to run a pilot program in support of the executive order. We are excited about this opportunity to help our country improve its security posture while significantly reducing legacy IT costs. Next, let me highlight our technology innovations and emerging products that are expanding our opportunities. We've built a highly scalable, globally distributed cloud capable of providing inline inspection of Internet and SaaS traffic with ZIA, and securing access to private applications with ZPA. Over the past few months, we extended our platform to protect cloud workflows and manage the digital user experience. We're very excited about the early traction of our emerging products, which are becoming the next growth engines for us. Our emerging products contributed a high single-digit percentage of new and upsell business in fiscal 2021, which is ahead of our expectations. ZDX is the fastest-growing solution in our history, seamlessly complementing ZIA and ZPA. With a single lightweight endpoint agent, it is frictionless to turn on ZDX to provide end-to-end visibility for every Zscaler user. In Q4, one of our largest ZDX deals came from a Fortune 500 tech company that purchased the entire ZIA portfolio, as well as ZPA and ZDX, for 60,000 employees to support work-from-anywhere while embracing Zero Trust architecture. We were pleasantly surprised to see many large enterprises adopt ZDX so rapidly. Our notable ZDX deals include a Fortune 500 revenue management company for 70,000 users, a Fortune 50 energy company for 55,000 users, a Fortune 500 European bank for 39,000 users, an industrial and manufacturing company for 28,000 users, and a healthcare company for 25,000 users. I believe that every ZIA and ZPA customer will embrace ZDX, as user experience is one of the highest priorities for our CIOs. We're receiving very positive feedback from customers. Our Fortune 600 healthcare executive indicated ZDX contributed to an 18-point gain in employee Net Promoter Score for IT service tasks in two quarters. After having established premier best security with our Zero Trust Exchange for users, our next big opportunity is to bring Zero Trust to workloads with Zscaler Cloud Protection (ZCP). Every organization is building its applications in the cloud and will look to implement Zero Trust security to protect workloads. Our Zero Trust exchange securely connects workloads to workloads and processes to processes, using business policies and eliminating the need for traditional networks and associated cyber risks. Solutions within our ZCP portfolio include Cloud Partial, which includes CV and CIEM, and ensures proper configuration and enforces least privileged access for multi-cloud environments. Our Cloud Communication powered by ZIA and CPA technology secures app-to-app and cloud-to-cloud communication. Workload Segmentation achieves micro-segmentation without legacy network segmentation. We have over 300 ZCP customers and are seeing strong interest from both new and existing customers. Let me highlight a few ZCP wins during Q4: an existing ZIA and ZPA customer in consumer goods with over 100,000 employees purchased Workload Communication for 25,000 workloads, and Workload Segmentation for 10,000 workloads. This customer plans to implement our Zero Trust for workloads to minimize lateral movement and secure app migration to the cloud. We're also landing new logos within ZCP. For example, we closed a deal with a Fortune 500 professional services company where ZCP was the main driver. This customer purchased Workload Communications for 6,000 workloads, Workload Segmentation for 500 workloads, as well as the entire ZIA bundle for 40,000 employees. We collaborated with CrowdStrike, our technology partner, and a global SI, our channel partner for this deal. Let me conclude with some thoughts on our vision and strategy. We envision a world in which the exchange of information is always secure and seamless. In today's rapidly connected digital world, our Zero Trust Exchange ensures secure any-to-any connectivity for users, applications, workloads, and IoT and OT systems, regardless of their location. At our Analyst Day in January, we outlined our vision of enabling 200 million users and 100 million workloads. To achieve this goal, we are focused on attracting and developing talent and creating a culture of excellence. We hired over 1,100 employees in the past year and enabled them to be productive and successful throughout the pandemic. We're investing in our people through learning initiatives and building a culture where a global task workforce can deliver excellence in powering our customer success. Our employees are engaged and fully aligned with our mission. In our last employee survey, 96% of employees understood and believed in the company's strategic direction. I'm proud that we are recognized as a great place to work in the 2021 Glassdoor ratings. We are focused on driving broad adoption of all four pillars of our platform; the breadth and depth of our platform resonate with customers. We see them purchasing our higher-end bundles to consolidate security and networking point products. Zscaler is the go-to platform for vendor consolidation, cost savings, increased user productivity, and improved cyber protection. As we demonstrated over the last 12 months, we've built a sophisticated go-to-market machine that delivers business value and measurable outcomes at the lowest cost level. I'm extremely proud of our go-to-market team and how we executed our sales strategy this year. Even with significant growth in our sales force, sales productivity has increased over the prior year, exceeding our expectations. Our Summit Partner Channel program consists of hundreds of partners, system integrators, and service providers contributing to our deal wins and increasing sales leverage. As our market share, reputation, and brand awareness strengthen, a growing number of Cloud and SaaS providers are integrating with our platform, further solidifying our strategic position with our joint customers. Our expanding ecosystem is contributing to our sales philosophy and broadening our reach. I believe we are on the right track to capture a material share of our $72 billion serviceable market. We also see additional opportunities to bring Zero Trust to IoT and OT systems. The adoption of 5G pushes computing further to the edge, opening up additional opportunities for Zscaler. We have a two-pronged innovation strategy: 1. Investing aggressively in internal R&D and scaling our world-class engineering organization to rapidly deliver new products and features. We recently opened a new R&D Hub in Israel and are expanding our R&D centers across the U.S., India, Canada, and Spain. 2. Engaging in highly targeted acquisitions to enhance our platform and reduce time to market. During fiscal 2021, we completed two acquisitions. Trustdome strengthens our ZCP pillar and positions us better to pursue our shift-left strategy. Smokescreen enhances our active defense capabilities with honeypot technology. Through internal innovation and targeted acquisitions, we will expand our leadership in the SASE and Zero Trust security markets. In summary, with all these drivers and innovations ahead, you can see why we are very excited about our future. Now, I would like to turn the call over to Remo for our financial results.

Thank you, Jay. As Jay mentioned, we are pleased with the results for the fourth quarter and full-year 2021. Revenue for the quarter was $197 million, up 12% sequentially, and 57% year-over-year. Product revenue was 17% of total revenue. From a geographic perspective, we had broad strength across our three major regions: Americas represented 51% of revenue, EMEA was 38%, and APJ was 1%. For the full year, revenue was $673 million, up 56% year-over-year. This was an acceleration from the 42% growth we delivered in fiscal 2020. Our total calculated billings grew 70% year-over-year to $332 million, with billing duration in the middle of our 10 to 14 months range. We're also pleased that year-over-year growth in short-term billings accelerated to 71% in the fourth quarter, from 61% in the previous quarter. Our strong billings performance was driven by a record number of new seven-figure annualized contract value deals in the quarter, and we sold more of our platform offerings. We saw strong growth in our top five verticals: Finance, Manufacturing, Services, Healthcare, and Technology. The Remaining Performance Obligations (RPO) were $1.553 billion as of July 31, up 98% from one year ago. The current RPO is 49% of the total RPO. Looking at our pillars, ZPA was 27% of our total new and upsell business in fiscal 2021. Emerging products, which include ZDX and ZCP, are tracking ahead of our expectations and contributed high single digits of our total new and upsell. We are seeing strong customer interest and we expect emerging products to contribute a low-teens percentage of our total new and upsell business in fiscal 2022. The adoption of our emerging products is pacing ahead of ZPA in its early years. We see a large opportunity within all our pillars, and we will continue to expand our portfolio to strengthen our leadership position in the Zero Trust security market. Our strong customer retention and our ability to upsell the broader platform have resulted in a consistently high dollar-based net retention rate, which was 128% compared to 126% last quarter and 120% a year ago. As highlighted, this metric will vary quarter-to-quarter; while good for our business, our success selling bigger bundles and multiple pillars from the start can reduce our dollar-based net retention rate in the future. Considering these factors, we feel 128% is outstanding. We have a solid base of large enterprise customers, providing a significant opportunity to upsell our broader platform. We had 202 customers with ARR greater than a million dollars, up 87% from 108 in the prior year. We also had 1,480 customers with ARR greater than $100,000 compared to 973 customers last year. Our new customer additions accelerated in fiscal 2021, with approximately 1,000 new logos added organically, excluding acquisitions. We ended the year with over 5,600 customers, expanding our field engagement with smaller enterprises with 2,000 to 6,000 employees. The increased investments in our partner program are contributing to higher new customer growth. Turning to the rest of our Q4 financial performance, the total gross margin of 80% declined by 1 percentage point quarter-over-quarter and improved by one percentage point year-over-year. Our total operating expenses increased 15% sequentially and 60% year-over-year to $138 million. Operating expenses as a percentage of revenue increased by 1 percentage point from 69% a year ago to 70% in the quarter, primarily due to increased hiring and higher compensation expenses, along with $2 million in expenses related to our recent acquisitions. The operating margin was 10%, and the free cash flow margin was 14%. We ended the quarter with over $1.5 billion in cash, cash equivalents, and short-term investments. Now moving on to guidance. 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. For the first quarter of fiscal 2022, we expect revenue in the range of $210 million to $212 million, reflecting year-over-year growth of 47% to 49% with gross margins of 79%. I would like to remind investors that some of our emerging products, including ZDX, Workload Segmentation, and CSPM, will initially have lower gross margins than our core products because we are focusing on time-to-market and growth rather than optimizing them for gross margin. Operating profit is projected in the range of $18 to $19 million, with other income of $400 thousand net of interest payments on senior convertible notes, and income taxes of $1.2 million. Earnings per share is expected to be approximately $0.12, assuming 148 million fully diluted shares. For the full-year fiscal 2022, we expect revenue in the range of $940 million to $950 million, reflecting year-over-year growth of 40% to 41%, with calculated billings in the range of $1.23 billion to $1.25 billion for year-over-year growth of 33% to 34%. We expect our first-half mix to be approximately 42% of our full-year billings, which aligns with the average of the past 3 to 4 years. Operating profit is expected in the range of $85 million to $90 million, with earnings per share in the range of $0.52 to $0.56, assuming approximately 149 to 150 million fully diluted shares. Please note that our share count guidance now includes dilution from our convertible debentures. We have a capped call with a strike price of $246.76; every $10 increase in our stock price above the strike price will add 250,000 to 300,000 shares to our fully diluted share count. For modeling purposes, I would like to discuss the anticipated short-term and long-term impacts on our fiscal 2022 operating expenses. In fiscal 2021, we saw a 280-basis point benefit to margins from lower expenses compared to fiscal 2020. With plans for in-person meetings and events in the second half of this year, including sales conferences in Q3, we expect expenses to be approximately 250 to 300 basis points higher in fiscal 2022 compared to fiscal 2021. As mentioned previously, the recent acquisitions of Trustdome and Smokescreen are expected to have an immaterial impact on revenue in fiscal 2022. We expect to incur approximately $13 million to $15 million in operating expenses to further invest in these products and incorporate their technologies into our platforms. This has been factored into our guidance. Let me conclude with comments on our investment framework. We will balance growth and profitability based on how our business is growing. At our Analyst Day, consensus estimates reflected approximately 30% revenue CAGR. We outlined our target of achieving 20 to 22% operating margins in fiscal 2024, which implies 300 basis points of margin expansion per year. Since then, we've delivered outstanding results with revenue growth exceeding expectations. If we continue to see high growth and strong unit economics, we'll prioritize investing in the business, potentially leading to less than 300 basis points of margin expansion per year. Our fiscal 2022 guidance of 40 to 41% revenue growth and operating margins of 9 to 9.5% reflects approximately 150 to 200 basis points of margin expansion after adjusting for the increased expenses. We remain confident about reaching 20 to 22% operating margins in the long term, but growth will continue to take priority considering our strong business momentum. With a massive market opportunity and customers increasingly adopting our broader platform, we're committed to investing aggressively in our Company.

Thank you. Our first question comes from Alex Henderson with Needham. You may proceed with your question.

Great. Thank you very much. As we're looking out into the New Year, I was hoping you could talk a little bit about your thoughts on the type of expansion you're planning relative to the sales capacity. You've been extremely aggressive over the last year and in fact, as I understand it, you increased your targets three times over the course of the year. Certainly, the environment is extremely robust. Can you talk about where you're going as we go into the new fiscal year? Thanks.

I'll start with that, Alex, then Jay can come in. You're right; the thing that we called out in the call is that we're seeing strong momentum for our business, particularly in the second half, and you're absolutely correct. We did increase our field quota sales reps by a significant number in fiscal 2021 versus fiscal 2020. Going forward, we will continue to invest in our sales organization, marketing, and channel. But that's only part of it. We will be increasing the number of heads for field quota sales reps in fiscal 2022 versus fiscal 2021. More broadly, the opportunity is vast, and we will continue to invest throughout the Company to really position ourselves to move forward as a substantial, efficient Company. Our focus is on driving reliability in our service delivery; if you're a cloud company like Zscaler, it is critical to provide a reliable service that customers can depend on. Our focus going forward will continue to include investments in sales and marketing, and we'll increase field sales rep headcount further in fiscal 2022 versus fiscal 2021.

Very well said. I don't think I need to add much more. We are hitting on all cylinders; I'm very excited.

Thank you. Our next question comes from Matt Hedberg with RBC. You may proceed with your question.

Yeah. Thank you for taking my question. This is Matt Swanson on for Matt. If I could just dive in a little bit more to those competitive dynamics. Great color today on the call, Jay. When we're thinking about that Zero Trust directive, you have really unique visibility both into the federal space with 100 customers and obviously being a Zero Trust leader. What do you think the gap is right now in the current federal environment towards achieving a Zero Trust framework? Additionally, could you give us some kind of magnitude and duration of the opportunity? Suppose three months from now that mandate became mandatory for all federal environments to adopt Zero Trust; how big is that gap?

If you think about the federal market, it's largely today doing network security with a castle-and-moat approach, relying on firewalls, VPNs, and the like. The positive news is that the Biden administration has recognized that Zero Trust architecture needs to be implemented. We have been investing in the federal market for about 3.5 years. We got all the necessary certifications and built the right architecture with a sizable team. We already have pretty good business, but we are just scratching the surface in the federal market. A lot of this requires education, but the engagements we've seen are promising. We are participating in several high-profile pilot programs. All in all, we are excited but understand that some of these federal deals take time.

Thank you. Our next question comes from Keith Bachman with the Bank of Montreal. You may proceed with your question.

Yes. Thanks very much. I wanted to ask a little bit about the net retention rate, which was very strong this quarter. However, you mentioned there may be some tension on the number, so I was curious how you think investors should regard the net retention rate looking forward. I wanted to reference some of the information you provided at the Analyst Day regarding significant expansion on the annual price per user, both in user Protection and workload protection categories, as well as seat growth. I was a little surprised to hear you almost downplay the 128 number, but could you elaborate on how investors should think about that over the next fiscal year?

I'll start, then Remo can add on. Our comments on net retention rates have been consistent since we went public, and here's the real thing: if I were a one-product company, it would matter a lot, including new logo upsells. We are such a large platform that is growing rapidly. We focus on overall new ACV growth, whether it comes from upsell or new logos. The message is not to downplay the net retention rate; it is that this metric by itself isn't the best indicator. We are proud of 128; I'd be proud of 125 too; if I can sell a bigger platform upfront, I'm okay with a lower net retention rate. That is the main message; we are happy and bullish about our trajectory. This metric alone isn't the leading indicator you might think.

Jay is absolutely correct. We understand the importance of the net retention rate due to our compensation structure, which pays the same for new and upsell. We really don't focus on it until we have projections for the quarter; we consider it at the end. Having said that, what's important is the increasing average revenue per user as we see customers adopting our broader platform. We have 44% of Global 2000 companies using both ZIA and ZPA. We wouldn't take our comments about the net retention rate to mean it will go down; we just want to condition our investors to think more broadly about the platform as a whole.

Thank you, your next question comes from Mike Walkley with Canaccord Genuity. You may proceed with your question.

Great, thank you. Congratulations on the strong quarter and year. Maybe just building on the last answer a bit. You've highlighted the enterprise segment targeting 2,000 to 6,000 employees as your fastest-growing segment. Do these smaller customers, with their faster sales cycles, have similar land characteristics as your larger customers? Or are they landing with a larger portion of your platform?

Overall, whether in the new enterprise segment or larger organizations, more customers are purchasing bigger platforms. It’s true that enterprises are likely to buy more from the start. However, they also tend to have shorter sales cycles. We have been surprised by how much traction we’ve received in this segment in the last few quarters since we focused on it.

The focus in the enterprise market has been through our Summit program, which we launched last year. We are seeing strong traction within this program, which is tailored to customers in the 2,000 to 6,000 employee range. We’re excited about this opportunity as it represents our fastest-growing segment.

Thank you. Our next question comes from an unidentified participant. You may proceed with your question.

Congratulations on the strong results. Jay, this is probably more for you, but when you look at the publicly traded firewall vendors, they are clearly experiencing strong demand trends for their virtual firewalls in Cloud applications. I'm wondering how you reconcile that with your comments around the benefits of a proxy; doesn’t it suggest that there could be different approaches, different architectures to securing the Cloud?

I think about this extensively. If you remember 34 years ago, we were posed with similar questions concerning proxy vendors like Bluecoat. I was telling them we had barely made a dent in the market. A lot of traffic still flows through those proxy appliances in data centers. As you look at the local breakout business, that is not their main focus. The majority of enterprise traffic still goes through hub-and-spoke networks and data centers. If traffic increases year-over-year by 33%, that leads to more purchases of data center devices, whether firewalls or others. Ultimately, as traffic shifts significantly, spending paradigms will also shift. That’s my perspective. So, I’m not surprised that legacy devices like firewalls continue to grow; I think it’s just a matter of time.

Your next question comes from Gray Powell with BTIG; please proceed with your question.

Okay, great. Thanks for taking the questions and congratulations on strong results. I'm curious how you are thinking about the potential to increase pricing on renewals, particularly now that cloud-based security is more mainstream, and the sales process has become less evangelical compared to three or four years ago.

Our primary increase in price is coming from selling larger bundles. There is some increase in price on individual modules; however, the speed at which we are expanding our portfolio is significant. As customers start seeing the value and the money we can save them by replacing all these legacy devices, our ROI becomes impressive and justifies our pricing. We do not compete solely on price or say we’re a better firewall. We enable secured digital transformation. Sales often come from CIOs or heads of security who realize the business value we bring to replace legacy systems.

Understood, so that clarifies my question. Thank you.

Thank you. Your next question comes from Hamza Fodderwala with Morgan Stanley. You may proceed with your question.

Hey guys, thanks for taking my question. Jay, perhaps a question for you. Last year, Zscaler saw a huge uptick in demand for the Zscaler Private Access solution. To what extent are those customers who may have bought smaller licenses or temporary licenses last year coming back now as they renew and signing larger agreements? How do you see that playing out in the next few quarters?

Last year, when customers needed to procure ZPA, very few, if any, temporary licenses were involved. The majority of deals were done as one-year contracts. Most transactions weren’t just for a subset of users; they were more comprehensive and intended for the long haul. This means we aren't feeling a significant impact from this in the short term. However, we are upselling ZPA to every ZIA customer, and many organizations believe that ZIA and ZPA should be purchased together. In fact, Gartner has recognized this, further clarifying SaaS positioning. SASE was a useful framework but confusing due to different interpretations; Gartner's new position paper underscores that the security aspect of SSE (Secure Service Edge) can be distinct from network components. Our comprehensive offerings allow us to strongly compete and succeed, offering good pricing as we move forward.

Our next question comes from Shaul Eyal. Please proceed with your question.

Thank you. Hi. Good afternoon, and congrats on the results and guidance. Jay, I want to inquire about the competitive landscape. While we've discussed it as of late, has anything changed or come to mind recently as you observe the environment you’re operating in?

Overall, if you ask me, the landscape hasn't changed significantly in terms of players. The most pronounced change has been in the Workload posture market with Cloud Protection. As for SaaS, ZIA and ZCP competition, there's not much. There may be noise from legacy network security vendors because they are facing disruption and need to assert relevance in the market. However, our momentum is building; businesses are doing well, and we want to continue investing aggressively to capture a share of this evolving sizable market.

Thank you. Our last question comes from JPMorgan. You may proceed with your question.

Yes. Thanks. Hi, guys. Hey, Remo, I want to ask a nitpicky question. Obviously, the results are fantastic, well above guidance and expectation. However, given the current RPO has accelerated for three straight quarters and short-term deferred revenue accelerated, I wonder why revenue actually ticked down a couple of percent? Why wouldn't it tick up?

Thank you for the question. Our guidance has always been conservative. Everything you pointed out is correct. However, I want to assure you that our focus is on moving forward, not looking backward. It's more about the overall business trajectory.

I was asking about the current quarter; the quarter you just reported reflects a decline from 56 and change versus last quarter.

Got it. It really comes down to linearity. If you compare Q4 of 20 to 21, the strong growth in Q4 last year was due to the COVID impact. Q4 21 was more normalized. The ramping of large deals impacts current revenue, thus accounting for revenue growth of 57% in Q4. In Q3 of 20, the COVID restrictions limited activity, whereas in Q3 of 21, we experienced normalized activity. These factors played a role in our revenue growth.

Thanks, Remo; I appreciate that.

Thank you. Our last question comes from Brian Essex with Goldman Sachs. You may proceed with your question.

Yes, good afternoon and thank you for taking my question. Jay, I would love to hear about the nature of enterprise adoption on your platform, especially concerning enabling meaningful change in digital transformation. What shifts do you perceive compared to last year?

Great question, Brian. The biggest shift resulted from COVID. Before the pandemic, enterprises focused on network transformation. Since the network approach changed, enterprises are aiming to implement ZIA for external applications and ZPA for internal ones swiftly. That mindset remains prevalent. When you don't have to grapple with network constraints, sales and deployments proceed more smoothly. Our emphasis will continue as we support this digital transformation for enterprises.

Thank you. Our next question comes from Erik Suppiger with GMP Securities. You may proceed with your question.

Yeah. Thanks for taking the question, and congratulations on a very strong quarter. Remo, could you remind us where the pricing was for organizations with around 5,000 users about a year ago? Additionally, for customers purchasing the entire range of modules, how significant are discounts?

I don't want to disclose exact discount rates, as it's competitive information. However, for 5,000 users, we're seeing prices at about $145 as customers are purchasing the full complement of our offerings. ZIA is around $25 of that, with various add-ons averaging around $30. Our pricing per user year-over-year has increased by approximately 35% to 40%. With the increased purchases of our platform, that trend appears sustainable.

Thank you. Our last question comes from Justin Kessler with Piper Sandler. You may proceed with your question.

Hey guys, this is Justin on for Rob. I want to delve deeper into the federal business. Historically, it has been around mid-single digits concerning new annual contract value; do you think this was higher in Q4? Also, what assumptions do you have for the federal business moving into fiscal 2022?

In the current quarter, we had mid-to-high single digits for federal. With the executive order from President Biden, as well as the federal government's interest in Zero Trust, our certifications position is strong. We believe the federal sector has considerable opportunities for our business moving forward. Although the process can be slow, we feel confident about our capabilities.

We believe our pipeline is strong. We have the necessary certifications and architecture that the federal government recognizes. We remain positive and confident in our opportunities in that sector. With that, I want to thank you for joining us today and for your interest in Zscaler. We look forward to talking to you next quarter. Thank you.

Thank you. Goodbye.

Thank you. This concludes today's conference call. Thank you for participating; you may now disconnect.