Zscaler, a leader in cloud security solutions, recently announced its financial results for the fiscal fourth quarter, demonstrating a performance that exceeded expectations. The company reported adjusted earnings per share (EPS) of $0.88 for the quarter ending July 31, up from $0.64 in the same period last year.
This figure not only surpassed analyst predictions but also reflected the robust demand for Zscaler's services. The expectations on Capital IQ had set the consensus at $0.69, highlighting Zscaler's solid growth in a competitive market. Moreover, Zscaler's revenue saw a striking 30% year-on-year increase, totaling $592.9 million, which was notably higher than Wall Street's forecast of $567.6 million.
Chief Executive Jay Chaudhry expressed his enthusiasm regarding customer adoption of the company’s Zero Trust Exchange platform, indicating that interest in their cloud solutions is stronger than ever. "I'm thrilled to share that we have achieved a major milestone with our cloud platform surpassing over half a trillion transactions daily," he stated, underscoring the scale at which Zscaler operates. Additionally, calculated billings for the quarter climbed 27% compared to the previous year, reaching an impressive $910.8 million.
However, despite these strong quarterly figures, the company's outlook for fiscal 2025 was less optimistic. Zscaler anticipates adjusted EPS for the next fiscal year to be between $2.81 and $2.87, with projected revenue ranging from $2.6 billion to $2.62 billion. This forecast fell short of analysts’ predictions, which suggested a normalized EPS of $3.28 and sales of $2.62 billion, causing some concern among investors. In after-hours trading, Zscaler's stock reflected market reactions to the guidance, declining by 9%.
For the upcoming current quarter, the company projected non-GAAP EPS between $0.62 and $0.63, with a revenue forecast between $604 million and $606 million. The market consensus is for EPS of $0.72 and a revenue estimate of $602.1 million for the same period. As of the last closing price, Zscaler's shares were at $177.06, showing a change of -16.13, translating to a percent change of -8.35.
Investors will be closely watching how the company's plans evolve in the coming quarters, especially regarding its ambitious goals and market expectations..