Shares of Zscaler were down in after-hours trading despite fiscal fourth-quarter financial results that outpaced expectations.
For the quarter ending in July, the cybersecurity firm posted revenue of $125.9 million, up 46% year over year, and adjusted earnings of 5 cents per share. Analysts polled by FactSet were expecting revenue of $118.6 million and earnings of 3 cents per share.
Shares of Zscaler (ZS) – Get Report were active, but overall down 3% in the minutes following the release.
“Businesses are digitally transforming at a pace never seen before, and this is fueling adoption of the Zscaler Zero Trust Exchange platform and our strong fourth quarter and fiscal year results,” said Zscaler CEO Jay Chaudhry in a statement. “In the new work-from-anywhere economy, where legacy network and security is an inhibitor, organizations are turning to our Zero Trust Exchange for the right architecture to enable success and create competitive advantage in this cloud and mobile world. I’m proud of our go-to-market execution and of the new innovations we are rapidly delivering on our platform to help our customers succeed.”
Zscaler’s billings grew 55% year-over-year to $194.9 million, while analysts were calling for new orders value of $175.2 million. Deferred revenue was $369.8 million, an increase of 47%.
For the current quarter, Zscaler guided for total revenue of between $131 million to $133 million, above Wall Street’s outlook, and non-GAAP earnings of approximately $0.05 to $0.06, assuming approximately 143 million common shares outstanding.
Zscaler’s stock was up more than 180% year to date heading into this earnings, partly on expectations of increased cloud cybersecurity demand during COVID-19.