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Zscaler is falling after publishing an easy profit forecast

Jay Chaudry, founder and CEO of Zscaler Inc.

David Paul Morris Bloomberg | Getty Images

Manufacturer of cybersecurity programs Zscaler on Thursday, its shares fell 18% after the company released quarterly earnings targets that were slightly lower than analysts had predicted.

This move more than erased the 10% gain during regular trading as well cybersecurity stocks are trading higher on fears of cyberattacks related to the Russian-Ukrainian conflict, and because the market as a whole has late rally after early immersion.

Here’s how the company did:

  • Income: 13 cents a share adjusted against 11 cents a share, analysts had expected, according to Refinitiv.
  • Income: $ 255.6 million versus $ 242 million, analysts had expected, according to Refinitiv.

Zscaler said revenue rose nearly 63% in the quarter ended Jan. 31, according to statement. It was the company’s fastest growth in three years, CEO Jay Chaudry said in a statement. But it reported a net loss of $ 100.4 million, up from $ 67.5 million last quarter.

Existing customers spend more on Zscaler products. At the same time, new customers are emerging – the company has added more than 560 customers who have paid more than $ 100,000 annually over the past 12 months, said Rima Canesa, the company’s chief financial officer, during a conference with analysts. Part of the growth is due to the purchase of Zscaler software through cloud markets Amazon and Microsoft, Chodry said during the call.

As for recommendations, Zscaler called for 10 cents to 11 cents a share of adjusted earnings for the third fiscal quarter and $ 270 million to $ 272 million in earnings. Analysts polled by Refinitiv expected 11 cents in adjusted earnings per share and $ 256.7 million in earnings.

For the full fiscal year, Zscaler said adjusted earnings per share ranged from 54 cents to 56 cents and revenue from $ 1.045 billion to $ 1.05 billion, representing nearly 56% revenue growth in the mid-range. That’s compared to Refinitiv’s consensus of 52 cents in adjusted earnings per share and $ 1.01 billion in earnings.

During the year, despite the transition to non-business hours, Zscaler fell 18% compared to a 10% rollback of the S&P 500 index.

This is the latest news. Please check for updates.

WATCH: Dan Ives of Wedbush names Zscaler, Palo Alto and Tenable the best in cybersecurity in 2022

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Zscaler is falling after publishing an easy profit forecast

Jay Chaudry, founder and CEO of Zscaler Inc.

David Paul Morris Bloomberg | Getty Images

Manufacturer of cybersecurity programs Zscaler on Thursday, its shares fell 18% after the company released quarterly earnings targets that were slightly lower than analysts had predicted.

This move more than erased the 10% gain during regular trading as well cybersecurity stocks are trading higher on fears of cyberattacks related to the Russian-Ukrainian conflict, and because the market as a whole has late rally after early immersion.

Here’s how the company did:

  • Income: 13 cents a share adjusted against 11 cents a share, analysts had expected, according to Refinitiv.
  • Income: $ 255.6 million versus $ 242 million, analysts had expected, according to Refinitiv.

Zscaler said revenue rose nearly 63% in the quarter ended Jan. 31, according to statement. It was the company’s fastest growth in three years, CEO Jay Chaudry said in a statement. But it reported a net loss of $ 100.4 million, up from $ 67.5 million last quarter.

Existing customers spend more on Zscaler products. At the same time, new customers are emerging – the company has added more than 560 customers who have paid more than $ 100,000 annually over the past 12 months, said Rima Canesa, the company’s chief financial officer, during a conference with analysts. Part of the growth is due to the purchase of Zscaler software through cloud markets Amazon and Microsoft, Chodry said during the call.

As for recommendations, Zscaler called for 10 cents to 11 cents a share of adjusted earnings for the third fiscal quarter and $ 270 million to $ 272 million in earnings. Analysts polled by Refinitiv expected 11 cents in adjusted earnings per share and $ 256.7 million in earnings.

For the full fiscal year, Zscaler said adjusted earnings per share ranged from 54 cents to 56 cents and revenue from $ 1.045 billion to $ 1.05 billion, representing nearly 56% revenue growth in the mid-range. That’s compared to Refinitiv’s consensus of 52 cents in adjusted earnings per share and $ 1.01 billion in earnings.

During the year, despite the transition to non-business hours, Zscaler fell 18% compared to a 10% rollback of the S&P 500 index.

This is the latest news. Please check for updates.

WATCH: Dan Ives of Wedbush names Zscaler, Palo Alto and Tenable the best in cybersecurity in 2022

Reported by Source link

RELATED ARTICLES
- Advertisment -

Most Popular