Zscaler Stock Appears as Zscaler Makes Best Estimates on Cloud Cybersecurity Growth

Z-scale (ZS) on Thursday released fiscal fourth-quarter earnings, revenue and billings that comfortably exceeded Wall Street targets. And the company’s outlook for fiscal 2023 came above views, giving Zscaler shares a boost.




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ZS stock jumped 10.9% to near 171 in prolonged trading in the stock market today. Cybersecurity stock was down 54% in 2022.

The San Jose, Calif.-based company said earnings were 25 cents per share on an adjusted basis, up 78% from 14 cents a year earlier. In the July quarter, revenue rose 61% to $318.1 million, the company said.

Analysts had expected Zscaler to earn 21 cents per share on sales of $305.4 million. Additionally, billings rose 57% to $520.4 million from estimates of $467.2 million.

For fiscal 2023, which begins with the October quarter, Zscaler said it expects earnings of $1.17 per share amid its outlook, ahead of estimates of $1.04 per share. .

Zscaler said it expects revenue between $1.49 billion and $1.50 billion. Analysts had forecast revenue of $1.468 billion.

Zscaler Stock: Billing Forecast Exceeds Estimates

The company forecasts billings of $1.93 billion for fiscal year 2023, against estimates of $1.859 billion.

“Despite the uncertain macro landscape that continues to evolve, we continue to see favorable demand for our Zero Trust Exchange platform as it makes businesses more secure, simplifies IT and reduces costs,” said the CEO. Jay Chaudhry in the company’s earnings release.

Heading into Zscaler’s earnings report, the company had a relative strength rating of 17 out of the best possible 99, according to IBD Stock Checkup.

Additionally, Zscaler provides cloud-based cybersecurity services through 150 data centers globally.

Zscaler’s web security gateways inspect customer data traffic for malware. The Zscaler Private Access, or ZPA, cloud service replaces virtual private networks, or VPNs, to support remote working.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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