SAN JOSE, Calif. – Zscaler, Inc. (NASDAQ:) has delivered robust financial results for the third quarter of fiscal year 2024, with earnings and revenue surpassing Wall Street’s expectations.
The company’s shares surged about15% following the announcement, signaling a positive investor response to the strong performance and optimistic future outlook.
For the third quarter, Zscaler reported adjusted earnings per share (EPS) of $0.88, which was $0.23 higher than the analyst estimate of $0.65. Revenue for the quarter was equally impressive at $553.2 million, exceeding the consensus estimate of $535.93 million and marking a 32% increase from the same quarter last year.
The company’s Chairman and CEO, Jay Chaudhry, attributed the success to growing customer interest in Zscaler’s Zero Trust Exchange platform and the company’s efforts to accelerate innovation and expand its platform.
Looking ahead, Zscaler provided guidance for the full fiscal year 2024 that was above analyst expectations. The company forecasts adjusted EPS to be between $2.99 and $3.01, compared to the consensus of $2.76.
Revenue is anticipated to be in the range of $2.14 billion to $2.142 billion, against the consensus of $2.12 billion. The midpoint of the guidance suggests that Zscaler is confident in its continued growth trajectory, with the forecasted figures surpassing analyst estimates.
The company’s performance was further bolstered by strategic acquisitions, such as Avalor Technologies and Airgap Networks, which enhance Zscaler’s AI capabilities and extend its leadership in Zero Trust Security Service Edge (SSE (LON:)) solutions.
Moreover, Zscaler’s recognition as a Leader in the Forrester Wave and Gartner (NYSE:) Magic Quadrant for SSE reflects its strong market position.
Chaudhry expressed optimism about the company’s direction, stating, “To meet this demand, we are accelerating innovation, expanding our platform and building a strong go-to-market team to scale our business to $5 billion and beyond in ARR.”
Investors have responded favorably to the company’s performance and future prospects, as evidenced by the significant stock price increase. Zscaler’s financial health is further supported by a solid cash position, with cash, cash equivalents, and short-term investments totaling $2.24 billion as of April 30, 2024.
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