Zscaler shares up on strong earnings and revenue beat

Zscaler shares up on strong earnings and revenue beat

Posted on



Shares in Zscaler Inc. were up slightly in late trading after the cybersecurity company reported earnings and revenue ahead of market expectations.

For the quarter ending April 30, Zscaler reported non-generally accepted accounting principles net income per share of 17 cents compared to 15 cents in the same quarter of last year. Revenue came in at $286.8 million, up 63% year-over-year.

Analysts had expected EPS of 11 cents on revenue of $271.4 million.

Cash provided by operations came in at $77.2 million, or 27% of revenue, compared to $73.4 million or 42% of revenue in the third quarter of fiscal 2021. As of the end of the quarter, deferred revenue was $818.7 million, up 65% year-over-year.

Highlights in the quarter included Zscaler launching Security Service Edge innovations to minimize the attack surface while stopping threats with private app protection, integrated deception and privileged remote access capabilities for business and operational technology systems.

As a founding member of the Cloud Security Alliance, Zscaler, along with partners CrowdStrike Holding Inc. and Okta Inc., also announced the foundation of the Zero Trust Advancement Center that brings together research and education at the CSA to be disseminated online and through global chapters.

“Enterprises continue to consolidate point products in favor of our integrated zero trust security platform, resulting in larger, multi-year commitments to Zscaler,” Jay Chaudhry, chairman and chief executive officer of Zscaler, said in a statement. “We delivered 63% revenue growth and 54% billings growth while also generating a strong free cash flow margin of 15% for the third quarter.”

Looking forward, Zscaler predicted fourth quarter fiscal 2022 non-GAAP EPS of 20 cents to 21 cents on revenue of $304 million to $306 million. Analysts had expected EPS of 17 cents on revenue of $291.02 million.

For the full fiscal year 2022, the company predicts EPS of 64 cents to 65 cents on revenue of $1.078 billion. This was also ahead of analysts’ predictions of 55 cents and $1.05 billion.

The figures were strong across the board, but despite the earnings beat, investors were not that surprised by the numbers. Zscaler shares were up only 1.32% after the bell to be at $144 as of 8 p.m. EDT.

Image: Zscaler

Show your support for our mission by joining our Cube Club and Cube Event Community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger and many more luminaries and experts.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *