Zscaler (ZS) reported fiscal second-quarter earnings, revenue and billings that topped estimates. The cybersecurity firm’s revenue guidance for Zscaler stock met expectations.
After the market close on Wednesday, Zscaler reported earnings of 78 cents a share from a year earlier on an adjusted basis, up 24% from a year earlier. 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.
Also, fiscal Q4 billings rose 18% to $742.7 million, compared with estimates for $719.6 million.
“Against a high degree of concern on durability of growth, including federal spend, Zscaler delivered a solid quarter and guide,” said BMO Capital Markets analyst Keith Bachman in a report. “Management’s comments around Zero Trust for branch opportunities are intriguing.”
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.
“Fiscal 2025 revenue guidance was raised to 22% growth versus 21.5% previously and billings guidance was raised to 20.5% growth versus +19.6% previously,” said RBC Capital analyst Matthew Hedberg in a report.
On the stock market today, Zscaler stock rose 3.5% to 203.28 in early trading.
At TD Cowen, analyst Shaul Eyal said in a report: “Zscaler continues to perform well in the large customer cohort, with the number of customers generating annual recurring revenue over $1 million growing 25% year-over-year to 620.”
