News

Zscaler Quarterly Results

1 2 3 4 5

4.4

Andrew R. Michaud

• February 29, 2024

Zscaler shares are facing a downturn in late trading, even after surpassing expectations for the January quarter and providing optimistic guidance for the upcoming months.

Market Response

Despite strong financial results, Zscaler's stock is down 7.6% in late trading, currently priced at $223.99. This decline comes after a recent sector-wide selloff triggered by a competitor's underwhelming guidance.

Financial Highlights

• January Quarter Performance: Zscaler reported revenue of $525 million, a 35% increase from the previous year. Billings reached $627.6 million, exceeding consensus expectations.

• Earnings: Adjusted profits stood at 76 cents per share, surpassing both company guidance and analyst forecasts. Meanwhile, GAAP-based earnings showed a loss of 19 cents per share.

Future Projections

• April Quarter Outlook: Revenue for the upcoming quarter is projected to fall between $534 million and $536 million, with adjusted profits ranging from 64 to 65 cents per share.

• Fiscal Year 2024 Forecast: Zscaler anticipates revenue in the range of $2.118 billion to $2.122 billion for the fiscal year, with billings between $2.55 billion and $2.57 billion. Adjusted profits are expected to be $2.73 to $2.77 per share.

Revised Guidance

The company's updated projections indicate significant growth from previous estimates, with revenue, billings, and profits all surpassing initial guidance figures.

While facing market challenges, Zscaler's robust performance and optimistic outlook signal resilience in the cybersecurity software industry.