Zscaler stock climbed late Thursday after the cybersecurity firm reported earnings and revenue for its fiscal second quarter that topped Wall Street targets. The company's revenue outlook also came in above views.
XSan Jose, Calif-based Zscaler (ZS) said it earned 10 cents a share on an adjusted basis vs. a 9-cent profit a year earlier. Revenue rose 55% to $157 million, the cybersecurity firm said.
Analysts expected Zscaler earnings per share of 8 cents on sales of $147.4 million. Billings rose 71% to $232 million, beating estimates of $191.3 million.
For the quarter ending in April, Zscaler expects revenue of $163 million vs. analyst estimates of $153.8 million. It forecasts adjusted earnings of 7 cents, below estimates for 9-cent profit amid higher investments.
Zscaler Stock Well Above Buy Point
Zscaler stock climbed 4.2% to near 204 in extended trading on the stock market today. Heading into the Zscaler earnings report, the cybersecurity stock traded well above a 158.84 entry point.
Zscaler stock owns a Relative Strength Rating of 93 out of a possible 99.
The company is the biggest provider of cloud-based web security gateways that inspect customers' data traffic for malware. It provides cloud-based cybersecurity services via 150 data centers worldwide.
The Zscaler Private Access, or ZPA cloud service, replaces virtual private networks, or VPNs, to support remote work. Palo Alto Networks (PANW) has emerged as a chief rival.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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