Zscaler stock rallies on earnings, outlook beat

 Zscaler stock rallies on earnings, outlook beat

Zscaler Inc. shares popped in the extended session Wednesday after the cybersecurity company’s quarterly results and higher full-year outlook breezed past Wall Street expectations.

Zscaler
ZS,
-0.95%

shares surged 7% after hours, following a 1% decline in the regular session to close at $172.74.

The company reported a fiscal third-quarter loss of $58.5 million, or 43 cents a share, compared with a loss of $19.3 million, or 15 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 15 cents a share, compared with 7 cents a share in the year-ago period.

Revenue rose to $176.4 million from $110.5 million in the year-ago quarter. Calculated billings, which is revenue plus deferred revenue acquired over the quarter, rose to $225 million from $131.3 million in the year-ago period.

Analysts surveyed by FactSet had forecast earnings of 7 cents a share on revenue of $163.7 million and billings of $185.4 million.

“Our Zero Trust Exchange platform is helping customers realize their digital transformation goals and architect for the new normal of the work-from-anywhere economy,” said Jay Chaudhry, Zscaler chairman and chief executive, in a statement. “With strong business momentum, we are pleased to again increase our fiscal year guidance.”

Zscaler expects adjusted earnings of 8 cents to 9 cents a share on revenue of $185 million to $187 million for the fiscal fourth quarter, and about 47 cents a share on revenue of $660 million to $664 million for the year. Analysts had forecast earnings of 9 cents on revenue of $173.9 million for the fiscal fourth quarter, and 40 cents a share on revenue of $637.5 million for the year.

As of Tuesday’s close, the stock is up 125% over the past 12 months, compared with a 42% gain by the S&P 500 index 
SPX,
-0.21%
,
 a 46% advance for the tech-heavy Nasdaq Composite Index 
COMP,
-0.03%
,
 and a 35% rise by the ETFMG Prime Cyber Security ETF 
HACK,
-0.38%
.

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