Why Zscaler Stock Is Surging Monday

Zscaler Inc ZS shares are trading higher Monday after the company said it expects to report third-quarter revenue above prior guidance and raised its full-year forecast.

What Happened: Zscaler reported preliminary results Monday morning showing the cybersecurity company expects to beat previous expectations. 

Third-quarter revenue is now expected to be in a range of $415 million to $419 million versus prior guidance of $396 million to $398 million. The company also expects adjusted income from operations to be in a range of $60 million to $64 million versus prior guidance of $55 million to $56 million.

"I am pleased to announce that our preliminary third quarter results exceeded the high end of our guidance range. We had a strong finish to the quarter as the high ROI of adopting the Zscaler Zero Trust Exchange^TM platform continues to resonate with customers and prospects in this challenging macro environment," said Jay Chaudhry, chairman and CEO of Zscaler.

Zscaler also increased its full-year outlook. The company now expected full-year revenue to be in a range of $1.587 billion to $1.591 billion versus prior guidance of $1.558 billion to $1.563 billion. 

Zscaler is set to report its third-quarter results on June 1. 

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ZS Price Action: Zscaler shares were up 20.9% at $108.13 at the time of publication, according to Benzinga Pro.

Photo: Elchinator from Pixabay.