Zscaler, the renowned cloud security provider, has unveiled fiscal first-quarter results that surpassed market expectations, thanks to its innovative integration of artificial intelligence within its service offerings. For the quarter ending on October 31, adjusted per-share earnings surged to $0.77, a notable increase from $0.55 a year earlier, outperforming the FactSet consensus estimate of $0.63.
The company's revenue experienced robust growth, climbing 26% to $628 million, exceeding Wall Street's forecast of $605.6 million. Additionally, calculated billings advanced 13% year-over-year to reach $516.7 million. Looking ahead, Zscaler anticipates adjusted earnings per share for fiscal 2025 to range between $2.94 and $2.99, a revision from the previous expectations of $2.81 to $2.87.
Revenue projections stand at approximately $2.62 billion to $2.64 billion, an increase from earlier guidance of $2.6 billion to $2.62 billion. In surveys conducted by Capital IQ, analysts predict a normalized earnings per share for the full year at $2.86, coupled with sales expectations of $2.61 billion.
For the upcoming quarter, Zscaler forecasts non-GAAP earnings per share in the range of $0.68 to $0.69, with revenue projected between $633 million and $635 million, aligning closely with the consensus estimations of $0.68 and $633.5 million, respectively. Following the announcement, Zscaler's shares dropped 7.8% in after-hours trading, suggesting a cautious market response to the ambitious guidance despite the strong quarterly performance..