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 ExchangeTM 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. 

See Also: Are Bank Stocks Signaling Mayday Call? Expert Warns This Index Falling Below 2007 Peak Would Be Ominous For Market

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.

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