Zscaler will ring the opening bell at the Nasdaq Exchange in New York on March 16, 2018.
Source: Nasdaq
zscaler The stock rose about 10% on Friday after reporting exceeded expectations in the third fiscal quarter, driven by the widespread adoption of artificial intelligence and its Zero Trust security platform.
“The surge in AI in all aspects of the business is increasing the need for AI security,” CEO Jay Chaudhry said in the release. “We are enabling our customers to safely adopt both public genai apps and their own private AI apps, increasing investment in this sector.”
Cloud Security Software Company said revenues rose 23% to $678 million, up from approximately $553 million in the same period last year. This led to an estimate of LSEG of $666 million.
Zscaler reports adjusted earnings of 84 cents per share, surpassing the expected LSEG of 75 cents per share. Billings rose 25% to around $785 million ahead of the $760 million estimate from StreetAccount.
Zscaler’s revenues are a hopeful indication of the cybersecurity industry, showing some pockets of weakness in a volatile macroeconomic environment. Sentinelone I lowered that prospect and dropped it Palo Alto Network After missing in total margins, the stock fell.
The report “reflects the strengths we’ve noticed in the preview and begins to prove the regelatation story the company has pointed out over the past few quarters,” wrote Keith Weiss of Morgan Stanley.
Zscaler reported a net loss of $4.1 million or a loss of 3 cents per share in the quarter. Last year, net income came at $19.1 million, or 12 cents per share.
The company issued brightly adjusted EPS guidance in the fourth quarter. Zscaler expects adjusted revenues to range from 79 to 80 cents per share, versus the expected 77 cents for LSEG.
In addition to revenue, Zscaler has appointed Kevin Rubin as Chief Financial Officer.
Watch: Zscaler CEO Jay Chaudhry hacks US Treasury to weigh in China
