Zscaler (ZS) on Wednesday reported fiscal second-quarter earnings, revenue and billings that topped estimates. The cybersecurity firm's revenue guidance for Zscaler stock met expectations.
Reported after the market close, Zscaler earnings rose 24% to 78 cents a share from a year earlier on an adjusted basis. Revenue climbed 23% to $647.9 million, the San Jose, Calif.-based firm said.
Zscaler stock analysts expected earnings of 69 cents per share on sales of $634 million.
Stride, Life Time, Netflix In Focus" vid-repeat="1" vid-top="" vid-url="https://content.jwplatform.com/manifests/jhg6QcxF.m3u8" vid-width="100"> ↑ X NOW PLAYING Stock Market Whipsaws Lower; Stride, Life Time, Netflix In FocusAlso, fiscal Q4 billings rose 18% to $742.7 million, compared with estimates for $719.6 million.
For the current quarter ending in April, Zscaler said it expects revenue of $666 million at the midpoint of guidance, in line with estimates of $666 million.
On the stock market today, Zscaler stock rose more than 5% to 207.40 in extended trading.
Zscaler has brought in a new chief revenue officer, chief marketing officer and other top sales staff as its go-to-market strategy undergoes big changes. Analysts lowered consensus estimates amid the sales organization overhaul.
Heading into the Zscaler earnings release, the cybersecurity stock had advanced 7% in 2024. Also, ZS stock had a Relative Strength Rating of 62 out of a best-possible 99, according to IBD Stock Checkup.
Zscaler provides cloud-based cybersecurity services via 150 data centers worldwide. Zscaler's web security gateways inspect customers' data traffic for malware.
Further, the Zscaler Private Access cloud service replaces virtual private networks to support remote work.
Zscaler competes with Palo Alto Networks (PANW) and Microsoft (MSFT) as well as well-funded startup Wiz.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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