{"id":16473,"date":"2022-02-25T02:50:07","date_gmt":"2022-02-25T02:50:07","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/25\/zscaler-shares-drop-on-lower-than-expected-outlook\/"},"modified":"2022-02-25T02:50:07","modified_gmt":"2022-02-25T02:50:07","slug":"zscaler-shares-drop-on-lower-than-expected-outlook","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/25\/zscaler-shares-drop-on-lower-than-expected-outlook\/","title":{"rendered":"Zscaler shares drop on lower-than-expected outlook"},"content":{"rendered":"

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Shares in\u00a0Zscaler Inc. dropped in late trading after the cybersecurity company reported a slightly lower-than-expected outlook.<\/p>\n

For its second-quarter ended Jan. 31, Zscaler reported a profit before costs such as stock compensation of $19.2 million or 13 cents per share, up from $14.8 million, 10 cents per share in the same quarter last year. Revenue in the quarter jumped 69% from a year ago, to $255.6 million.<\/p>\n

Analysts had predicted<\/a>\u00a0an adjusted profit of 11 cents per share on revenue of $242 million.<\/p>\n

The company\u2019s net loss in the quarter widened to $100.4 million, from $67.5 million in the same quarter a year ago.<\/p>\n

Recent company highlights include Zscaler launching a new Workload Communication solution as part of the Zscaler Zero Trust Exchange. The service extends zero-trust security<\/a> to workloads and applications hosted in public clouds and helps information technology teams simplify multicloud workload connectivity.<\/p>\n

\u201cDriven by continued demand for our Zero Trust security platform, we delivered strong results for the second quarter, with our year-over-year revenue growth rate reaching its highest level in three years, even as we surpassed $1 billion in annualized revenue,\u201d Jay Chaudhry, chairman and chief executive officer of Zscaler, said in a statement<\/a>.<\/p>\n

After releasing its earnings, Chief Financial Officer\u00a0Remo Canessa provided some additional insight into Zscaler\u2019s growth in an investor call. Canessa said that Zscaler had added more than 560 new customers paying over $100,000 annually in the past 12-month. Part of the growth is said to be coming from purchases of Zscaler software through cloud marketplaces on Amazon Web Services Inc. and Microsoft Corp.\u2019s Azure.<\/p>\n

Looking forward, Zscaler said it expects non-GAAP net income per share of between 10 cents and 11 cents on revenue of $270 million to $272 million. For the full fiscal year 2022, non-GAAP EPS is predicted to be 54 cents to 56 cents per share on total revenue of $1.045 billion to $1.05 billion.<\/p>\n

Analysts had predicted EPS of 11 cents on revenue of $256.7 million in the third quarter and EPS of 52 cents on revenue of $1.01 billion for the full fiscal year.<\/p>\n

There\u2019s not a big difference in Zscaler\u2019s outlook to what analysts had been predicting \u2013 estimated EPS range of 10 cents to 11 cents versus a prediction of 11 cents while the other outlook figures came in ahead. But that said, it was enough to spook investors.<\/p>\n

On a day that cybersecurity stocks rose strongly<\/a> due to the Russian invasion of Ukraine and an expected increase in demand for cybersecurity services, Zscaler\u2019s share price went up in regular trading before losing those same gains after the bell.<\/p>\n

After closing regular trading up 10.02% to $263.38, Zscaler\u2019s share price then dropped 14.91% to $224.11 as of 8 p.m. EST.<\/p>\n

Image: Zscaler<\/h5>\n
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