Zscaler Strikes Back With Q1 Earnings
Zscaler stock popped early Thursday after it reported better than expected quarterly results late on Wednesday.
When Zscaler Inc. (NASDAQ: ZS | ZS Price Prediction) released its fiscal first-quarter financial results after markets closed on Wednesday, the firm said that it had a $0.14 in earnings per share (EPS) and $142.6 million in revenue. That topped consensus estimates of $0.06 in EPS and $132.32 million in revenue, as well as $0.04 in EPS and $93.59 million in revenue posted in the same period last year.
For the most recent quarter, deferred revenue increased 51% year over year to $371.9 million, while calculated billings grew 64% to $144.7 million.
Cash provided by operations totaled $53.5 million during this quarter, compared to $21.4 million in the same period from last year. Free cash flow was $42.2 million, up from $9.4 million in the same period last year
On the books, Zscaler’s cash, cash equivalents and short-term investments totaled $1.42 billion at the end of the quarter, up from $1.37 billion at the end of the previous fiscal year.
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Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.07 to $0.08 and total revenue of $146 million to $148 million. Consensus estimates call for $0.07 in EPS and $140.28 million in revenue for the quarter.
Management noted that customers are accelerating their digital transformation and this drove strong first-quarter results. The firm’s visibility and business momentum remain strong, and management is pleased to increase its guidance.
Zscaler stock closed Wednesday at $146.79, in a 52-week range of $35.00 to $163.80. The consensus price target is $153.79. Following the announcement, the stock was up about 11% at $163.00 in early trading indications Thursday.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
