Zscaler Stock Is Diving After Hours: What's Going On?

Zscaler Inc ZS shares are falling in Thursday's after-hours session after the company reported first-quarter results.

Q1 Earnings: Zscaler reported first-quarter revenue of $355.55 million, which beat average analyst estimates of $343.89 million, according to Benzinga Pro. The company reported quarterly earnings of 29 cents per share, which beat estimates of 26 cents per share.

Revenue was up 54% year-over-year, while calculated billings jumped 37%. Deferred revenue grew 55% year-over-year, crossing the $1 billion mark. 

"We delivered strong top line growth with improved operating profitability and increased free cash flow, once again performing at the Rule-of-80. We are seeing customers committing to our broader platform, driven by vendor consolidation and an elevated threat environment," said Jay Chaudhry, chairman and CEO of Zscaler.

Outlook: Zscaler sees second-quarter revenue between $364 million and $366 million versus average estimates of $358.55 million. Second-quarter earnings are expected to be between 29 cents and 30 cents per share versus estimates of 26 cents per share. 

Full-year revenue is expected to be between $1.525 billion and $1.53 billion. Full-year earnings are expected to be in a range of $1.23 to $1.25 per share.

Zscaler is a security-as-a-service firm that offers its customers cloud-delivered solutions for protecting user devices and data.

See Also: After-Hours Action: Why Marvell Technology Stock Is Tumbling

ZS Price Action: Zscaler shares are down 9.02% in after hours at $131.43 at the time of writing, according to Benzinga Pro.

Photo: Robinraj Premchand from Pixabay.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: MoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!