Zscaler Inc. Exceeds Expectations, Shares Rally

Zscaler Inc., a leading cybersecurity company, experienced a significant rally in its shares after surpassing Wall Street expectations for the quarter and providing a positive outlook.

Impressive Quarterly Results

Zscaler's stock (ZS, +2.75%) saw a 5% increase during after-hours trading, following a 2.8% gain in the regular session, which led to a closing price of $162.74.

The company's projected adjusted earnings for the fiscal first quarter are estimated to be between 48 and 49 cents per share, with revenues ranging from $472 million to $474 million. Analysts surveyed by FactSet previously predicted 45 cents per share on revenue of $464.8 million, with billings amounting to $434.1 million.

Positive Outlook for the Full Year

Zscaler expects to achieve full-year earnings of $2.20 to $2.25 per share, alongside revenues of $2.05 billion to $2.07 billion and billings totaling $2.52 billion to $2.56 billion. This exceeds the analysts' forecast of $2.11 per share on revenue of $2.05 billion, with billings reaching $2.47 billion.

Remarkable Financial Performance

In the fiscal fourth quarter, Zscaler reported a loss of $30.7 million, or 21 cents per share. This marks an impressive improvement compared to the previous year's loss of $97.7 million, or 69 cents per share. When excluding stock-based compensation and other items, Zscaler achieved an adjusted net income of 64 cents per share, compared to 25 cents per share in the same period last year.

The company's revenue soared from $318.1 million in the corresponding quarter of the previous year to $455 million. Moreover, Zscaler experienced a remarkable 38% growth in billings, which amounted to $719.3 million.

The previously estimated adjusted earnings for the quarter were 49 cents per share, with revenue projected to fall within the range of $429 million to $431 million. However, analysts surveyed by FactSet predicted 49 cents per share on revenue of $430.4 million, with billings totaling $657.5 million.

Impressive Year-to-Date Performance

Zscaler's stock has demonstrated substantial growth, witnessing a 45.4% increase year-to-date. When compared to the 17.1% gain by the S&P 500 (SPX, -0.42%), the 34% rise by the Nasdaq Composite (COMP, -0.08%), and the 20.9% gain by the ETFMG Prime Cyber Security exchange-traded fund (HACK, +0.08%), Zscaler's performance remains outstanding.

Zscaler Inc. continues to impress with its outstanding financial performance, surpassing Wall Street expectations and presenting a positive outlook for the future. With their ongoing success, it is evident that Zscaler will remain a prominent player in the cybersecurity industry.