When Zscaler Inc. (NASDAQ: ZS) released its fiscal third-quarter financial results after the markets closed on Tuesday, the firm said that it had a $0.07 in earnings per share (EPS) and $110.5 million in revenue. That topped consensus estimates of $0.02 in EPS and $106.3 million in revenue, as well as $0.05 in EPS and $79.1 million in revenue posted in the same period of last year.

For the most recent quarter, deferred revenue increased 42% year over year to $300.8 million, while calculated billings grew 55% to $131.3 million.

Zscaler also announced that it acquired Edgewise Networks, a pioneer in securing application-to-application communications in public clouds and data centers. The terms of the deal were not disclosed.

Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.02 to $0.03 and total revenue of $117 million to $119 million. Consensus estimates call for $0.01 in EPS and $114.29 million in revenue for the quarter.

Jay Chaudhry, board chair and chief executive of Zscaler, commented:

Our strong results are a reflection of our sales execution and the entire Zscaler team stepping up to help our customers succeed in these difficult times. The mitigation activities taken by every enterprise in response to the COVID-19 pandemic created an immediate need for strong security and access to the internet and business applications, all while working from anywhere. The digital transformation that is driving our business is further accelerating, and we believe the Zscaler cloud security platform is best positioned to help our customers thrive no matter where their teams are working.

Zscaler stock traded up 22% Friday to $92.99, in a 52-week range of $35.00 to $93.59. The consensus price target is $67.90.

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