Zscaler (ZS) on Tuesday reported fiscal fourth-quarter earnings, revenue and billings that topped Wall Street targets. The cybersecurity firm’s fiscal 2024 outlook came in above views. ZS stock rose on the news.
Prior to the Zscaler earnings release, the cybersecurity stock had gained 41% in 2023.
The San Jose, Calif-based firm said earnings were 64 cents a share on an adjusted basis, up 156% from 25 cents a year earlier. In the July quarter, revenue rose 43% to $455 million, the company said.
ZS stock analysts expected earnings of 49 cents per share on sales of $430.4 million. Also, billings rose 38% to $719.3 million, compared with estimates for $660 million.
ZS Stock: Fiscal 2024 Outlook
For fiscal 2024, which starts with the October quarter, Zscaler said it expects earnings in a range of $2.20 to $2.25, ahead of estimates for $2.11 a share.
Zscaler said it expects revenue in a range of $2.05 billion to $2.065 billion. Analysts had predicted revenue of $2.05 billion.
ZS stock rose 3.8% to near 169 in extended trading on the stock market today.
Heading into the Zscaler earnings report, shared had clawed back above the 50-day moving average. Also, ZS stock owned a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup.
In addition, Zscaler provides cloud-based cybersecurity services via 150 data centers worldwide
Zscaler’s web security gateways inspect customers’ data traffic for malware. The Zscaler Private Access, or ZPA cloud service, replaces virtual private networks, or VPNs, to support remote work. Palo Alto Networks (PANW) and Microsoft (MSFT) are rivals.
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