Zscaler earnings top expectations, but the cybersecurity stock falls
Zsacler Inc. topped expectations with its latest results and outlook, but its stock was moving lower in Thursday’s extended session.
For the fiscal third quarter, Zscaler
ZS,
expects $534 million to $536 million in revenue along with 64 cents to 65 cents in adjusted earnings per share. The FactSet consensus was for $532 million and 58 cents, respectively.
The cybersecurity company posted a fiscal second-quarter net loss of $28.5 million, or 19 cents a share, compared with a loss of $57.5 million, or 40 cents a share, in the year-earlier period.
On an adjusted basis, Zscaler earned 76 cents a share, compared with 37 cents a share a year before, while analysts tracked by FactSet were modeling 58 cents a share.
Revenue rose to $525 million from $388 million, whereas the FactSet consensus was for $508 million.
The company saw calculated billings of $628 million, while analysts had been looking for $611 million.
“An increasing number of customers are realizing the shortcomings of traditional firewall-based security and are engaging with us to transform their legacy security to Zero Trust architecture,” Chief Executive Jay Chowdhry said in a release.
Shares of Zscaler fell 7.6% in after-hours trading Thursday.
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