Zscaler (ZS) exceeded Wall Street expectations for fiscal first-quarter earnings and revenue, impressing investors. The cybersecurity company’s optimistic guidance for Zscaler stock further fueled high expectations. This news comes after Zscaler reported a 131% increase in earnings to 67 cents per share and a 40% surge in revenue to $496.7 million. Analysts had expected earnings of 49 cents per share on sales of $473.4 million. Zscaler also reported a 34% increase in billings to $456.6 million, surpassing estimates. Additionally, the company announced management changes alongside plans to ramp up sales and marketing efforts.
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ZS Stock: Management Changes
For the current quarter ending in January, Zscaler expects EPS in the range of 57 to 58 cents, higher than the estimated 52 cents a share. Revenue is also projected to reach $506 million at the midpoint of guidance, exceeding analysts’ expectations of $496.7 million. Subsequently, Zscaler witnessed a 6.8% drop in stock price, almost near 179, in after-hours trading. Prior to this, the cybersecurity stock had already experienced tremendous growth in 2023. Zscaler’s cloud-based cybersecurity services, particularly its web security gateways and ZPA cloud service, have gained significant traction in the market. The company competes with Palo Alto Networks (PANW) and Microsoft (MSFT).
For more news on artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech.
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