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.