Zscaler Stock Zooms On Q4 Earnings Beat, Revenue Up 43%, Strong Guidance

Zscaler Inc ZS shares are trading higher on the heels of the company's fiscal fourth-quarter results. Here's a rundown of the report and a look at what's driving shares higher after hours.

Q4 Earnings: Zscaler said fourth-quarter revenue increased 43% year-over-year to $455.01 million, which beat the consensus estimate of $430.42 million, according to Benzinga Pro. The company reported quarterly earnings of 64 cents per share, which beat analyst estimates of 49 cents per share. Zscaler had beat analyst estimates on both the top and bottom line in 20 straight quarters heading into the print.

Calculated billings grew 38% year-over-year and deferred revenue was up 41%. Zscaler said it doubled its annual recurring revenue in less than two years. 

Cash flow from operations came in at $135.9 million, up from $103.1 million year-over-year. The company ended the quarter with cash, equivalents and short-term investments of approximately $2.1 billion. 

"With cyber security as a high priority, IT executives are modernizing their legacy network security with our zero-trust architecture," said Jay Chaudhry, chairman and CEO of Zscaler.

"Our customers are realizing tremendous value from the new services and advanced capabilities delivered on our Zero Trust Exchange platform."

Outlook: Zscaler sees fiscal first-quarter revenue of $472 million to $474 million versus estimates of $464.75 million. Full-year revenue is expected to be between $2.05 billion and $2.065 billion versus estimates of $2.04 billion.

The company anticipates fiscal first-quarter earnings of 48 to 49 cents per share versus estimates of 45 cents per share. Full-year earnings are expected to be between $2.20 and $2.25 per share versus estimates of $2.10 per share. 

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

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ZS Price Action: Zscaler shares were up 3.86% after hours at $169.02 at the time of publication, according to Benzinga Pro.

Photo: courtesy of methodshop from Pixaay.