ZeroFox Announces Fourth Quarter Fiscal Year 2023 Financial Results

WASHINGTON, March 14, 2023 (GLOBE NEWSWIRE) — ZeroFox Holdings, Inc. (Nasdaq: ZFOX), a leading external cybersecurity provider, today announced financial results for the fourth quarter ended January 31, 2023.

“We closed out fiscal year 2023 with positive Q4 results, which exceeded the high end of our revenue guidance. Last year was transformational for ZeroFox. We were the only cybersecurity company to go public where we raised significant growth capital and completed our strategic acquisition of IDX,” said James C. Foster, Chairman and CEO of ZeroFox. “We believe the continued expansion of the external attack surface and increasing threat sophistication will accelerate the external cybersecurity platform mandate even during uncertain macroeconomic environments. As we look to this fiscal year, we remain focused on capturing the significant growth opportunities we see in external cybersecurity while progressing on our path to profitability.”

Fourth Quarter Fiscal Year 2023 Financial Highlights

  • Revenue: Total revenue was $45.4 million.
  • Annual Recurring Revenue was $156.7 million.
  • Gross margin: GAAP gross margin was 31% and non-GAAP gross margin was 41%. GAAP subscriptions gross margin was 44% and non-GAAP subscriptions gross margin was 73%.
  • Loss from Operations: GAAP loss from operations was $21.1 million. Non-GAAP loss from operations was $7.2 million.
  • Cash and Cash Equivalents were $47.5 million on January 31, 2023.

Recent Highlights

  • Ended the year with 1,203 subscription customers including 147 subscription customers with ARR greater than $100,000, an increase of 25% year over year.
  • Awarded 2022 Global Digital Risk Protection Competitive Strategy Leadership Award by Frost & Sullivan for leadership in Digital Risk Protection.
  • Released key research on 2023 cyber threat predictions and executive protection in conjunction with SANS Institute.
  • Launched PII removal solution to find and remove executive personal information from over 100 data broker sites that could be leveraged for digital or physical attacks.

Financial Outlook

ZeroFox is providing the following guidance for the first fiscal quarter of 2024:

  • Revenue of $44.0 million to $44.6 million.
  • Non-GAAP loss from operations of $9.8 million to $9.3 million.

ZeroFox is providing the following guidance for full year fiscal 2024:

  • Revenue of $183.0 million to $187.0 million.
  • Non-GAAP loss from operations of $29.0 million to $26.0 million.

ZeroFox has not reconciled its expectations as to non-GAAP loss from operations to their most directly comparable GAAP measures because certain items are out of ZeroFox’s control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP loss from operations is not available without unreasonable effort.

Additional information regarding the non-GAAP financial measures and key business measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading “Use of Non-GAAP Financial Measures and Key Business Measures.” A reconciliation of non-GAAP to GAAP financial measures has also been provided in the financial tables included below and is available on our Investor Relations website.

Note that the comparison to prior year GAAP operating results is not meaningful because the financial results for the prior year’s period consist only of our predecessor, ZeroFox, Inc. and do not include the operating results of IDX.  Supplemental financial information that includes historical, stand-alone financial statements for ZeroFox and IDX is available on our Investor Relations website.

About ZeroFox

ZeroFox (Nasdaq: ZFOX), an enterprise software-as-a-service leader in external cybersecurity, has redefined security outside the corporate perimeter on the internet, where businesses operate, and threat actors thrive. The ZeroFox platform combines advanced AI analytics, digital risk and privacy protection, full-spectrum threat intelligence, and a robust portfolio of breach, incident and takedown response capabilities to expose and disrupt phishing and fraud campaigns, botnet exposures, credential theft, impersonations, data breaches, and physical threats that target your brands, domains, people, and assets. Join thousands of customers, including some of the largest public sector organizations as well as finance, media, technology and retail companies to stay ahead of adversaries and address the entire lifecycle of external cyber risks. ZeroFox and the ZeroFox logo are trademarks or registered trademarks of ZeroFox, Inc. and/or its affiliates in the U.S. and other countries. Visit for more information.