Zscaler stock climbed late Thursday after the cybersecurity firm reported fiscal third-quarter earnings, revenue and billings that topped Wall Street consensus estimates. The cybersecurity firm's revenue guidance came in slightly below expectations.
After the market close, Zscaler reported earnings of 84 cents on an adjusted basis, up 18% from a year earlier. Revenue climbed 23% to $678 million, the San Jose, Calif.-based firm said.
Zscaler stock analysts expected earnings of 76 cents per share on sales of $666.5 million.
Also, fiscal Q3 billings rose 25% to $784.5 million, well above estimates for $759.7 million. Billings are a sales growth metric.
For the current quarter ending in July, Zscaler said it expects revenue of $706 million at the midpoint of guidance, slightly below estimates of $707.2 million.
On the stock market today, Zscaler stock climbed more than 5% to 265.50 in extended trading. Also, the cybersecurity firm announced a new chief financial officer, Kevin Rubin.
Zscaler Stock: Red Canary Purchase
To build a broad security operations center platform, Zscaler has been on an acquisition spree. Earlier this week, Zscaler agreed to buy Red Canary, a provider of managed threat detection and response services. The deal is expected to close in August. Financial terms were not disclosed.
Meanwhile, Zscaler recently brought in a new chief revenue officer, chief marketing officer and other top sales staff as its go-to-market strategy undergoes changes.
Heading into the Zscaler earnings release, the cybersecurity stock had advanced 40% in 2024. Also, ZS stock had a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup.
Zscaler provides cloud-based cybersecurity services via 150 data centers worldwide. Zscaler's web security gateways inspect customers' data traffic for malware.
Further, the Zscaler Private Access cloud service replaces virtual private networks to support remote work.
Zscaler competes with Palo Alto Networks and Microsoft as well as well-funded startup Wiz. Google-parent Alphabet has agreed to buy Wiz.
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