Zscaler's fiscal fourth-quarter performance reflects increased success in selling bigger bundles and strong customer traction for the Zero Trust Exchange platform.
Zscaler published Q4 results yesterday after market hours, and the stock is down by 15-18% in pre-market today. Billings growth in H1 could be weak, but investors should take note of the back-ended effect from contracted, non-cancellable billings. Gross margins may drop due to a focus on emerging products, and FCF margins could decline as CAPEX commitments increase, though the overall cash position still remains strong.
Despite a double beat, Zscaler stock crashed 16% after reporting earnings.
Zscaler's stock dropped 15% after hours due to its projected 10th consecutive quarter of revenue growth deceleration, now priced at 46x forward non-GAAP operating profits. Despite a rock-solid balance sheet and strong medium-term growth prospects, Zscaler's slowing growth and competitive pressures raise concerns. Zscaler's fiscal Q1 2025 will likely show lower profit margins, contradicting expectations for higher profitability as the company scales.
Shares in Zscaler (ZS) plunged in extended trading Tuesday after the provider of cloud-based cybersecurity services issued current quarter and full-year earnings guidance that came in significantly below Wall Street expectations, as enterprise customers manage technology budgets and spending more carefully against a backdrop of economic uncertainty.
Zscaler, Inc. (NASDAQ:ZS ) Q4 2024 Earnings Conference Call September 3, 2024 4:30 PM ET Company Participants Ashwin Kesireddy - Vice President, Investor Relations and Strategic Finance Jay Chaudhry - Chairman and Chief Executive Officer Remo Canessa - Chief Financial Officer Conference Call Participants Saket Kalia - Barclays Brad Zelnick - Deutsche Bank Roger Boyd - UBS Joseph Gallo - Jefferies Ittai Kidron - Oppenheimer Brian Essex - JPMorgan Matt Hedberg - RBC Capital Markets Shrenik Kothari - Baird Patrick Colville - Scotiabank Adam Borg - Stifel Hamza Fodderwala - Morgan Stanley Operator Good day, everyone, and thank you for standing by. Welcome to Zscaler Fourth Quarter 2024 Earnings Call.
Zscaler (ZS) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.64 per share a year ago.
Zscaler forecast fiscal 2025 revenue and profit below Wall Street estimates on Tuesday, as it grapples with weak spending on its cybersecurity products, sending its shares down more than 12% in extended trading.
The cybersecurity company edged the consensus view with its revenue forecast for the current quarter.
Zscaler stock fell after the cybersecurity firm reported fiscal Q4 earnings that beat estimates while guidance underwhelmed investors.
Zscaler, Inc. ZS is set to release earnings results for its fourth quarter, after the closing bell on Tuesday, Sept. 3.
Zscaler Inc ZS will be reporting its fourth-quarter earnings on Tuesday. Wall Street expects 69 cents in EPS and $567.93 in revenues as the company reports after market hours.