June 17, 2024
Zscaler results, outlook top Street view, but shares dip amid tough cloud-software environment

Zscaler results, outlook top Street view, but shares dip amid tough cloud-software environment

Zscaler Inc. shares declined in the extended session Thursday after the cybersecurity company’s results and forecast topped Wall Street expectations amid a tough cloud-software environment.

Zscaler shares ZS, +5.40% slipped about 1% after hours, following a 0.3% decline in the regular session to close at $135.09.

The company forecast adjusted earnings of about 49 cents a share on revenue of $429 million to $431 million for the fiscal fourth quarter. Analysts surveyed by FactSet had estimated 47 cents a share on revenue of $387.3 million and billings of $657.5 million for the quarter.

The company forecast full-year earnings of $1.63 to $1.64 a share on revenue of about $1.59 billion, and billings of $1.97 billion to $1.98 billion. Last quarter, the company said it expected full-year earnings of $1.52 to $1.53 on about $1.56 billion revenue, and billings of $1.94 billion to $1.95 billion.

Analysts had estimated $1.56 a share on revenue of $1.58 billion, and billings of $1.96 billion for the year.

The company reported a fiscal third-quarter loss of $46 million, or 32 cents a share, compared with a loss of $101.4 million, or 72 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 48 cents a share, compared with 17 cents a share in the year-ago period.

Revenue rose to $418.8 million from $286.8 million in the year-ago quarter, the company said, as billings grew 40% to $482.3 million.

Analysts had forecast earnings of 42 cents a share on revenue of $411.6 million, and billings of $469.2 million.

As of Thursday’s close, Zscaler’s stock is up 20.7% year to date, compared with a 9.9% gain by the S&P 500 index  SPX, +1.45%, a 25.2% increase by the tech-heavy Nasdaq Composite Index COMP, +1.07% and an 11.4% gain by the ETFMG Prime Cyber Security ETF  HACK, +0.41%.

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