Zscaler is expected to fall in Friday’s trading session despite beating analyst expectations on its earnings call on December 01.
On Thursday’s closing bell, its stock soared by 8.28% to $144.50 apiece. However, it is expected to plunge by 10.03% to $144.50 per share in the next session.
The company’s earnings per share rose to $0.29, beating analyst consensus of $0.26 and topping its previous record of $0.25.
Likewise, its revenue soared to $355.50 million, exceeding market expectations of $340.68 million and surpassing the past earnings of $318.06 million.
For Q1 of fiscal 2023, the firm’s operation GAAP loss was $69.10 million, against $74.40 million in the same period a year prior.
Additionally, the net income loss of Zscaler was $68.20 million, compared to $90.80 million a year before.
Furthermore, the cloud security company’s net loss per share was $0.48, from $0.65 a year prior.
However, Zscaler announced weaker revenue guidance for Q2 of 2023 at $364.00 million to $366.00 million, shy of the $325.10 million experts’ consensus.
In 2023, it expects adjusted earnings of $1.23 to $1.25 apiece, below the market forecast of $1.18 a share.
According to Zscaler, the dim earnings guidance was due to a longer time in closing larger deals.
GSA Authorized Zscaler’s ZPA Service
Zscaler announced that the US General Service Administration had given them a FedRAMP for its Private Access service.
GSA administers the policy to set a standard for cloud-based firms.
Under the standard, government agencies could use it for authorization, security assessment, and continuous monitoring of cloud products.
According to Zscaler, the authorization will allow government agencies and contractors to use their Zero Trust Platform.
This service provides users secure access to private applications without needing remote access VPN.
In light of this, Defense Industrial Base customers and Federal agencies now use the firm’s ZPA.
Looking forward, Zscaler expects updates from their team, hoping to become the most trusted cloud security provider.
