By Wallace Witkowski
Zscaler Inc. shares surged in the extended session Wednesday after the cybersecurity company reported results and forecast an outlook that surpassed Wall Street expectations.
Zscaler’s (NAS:ZS) stock rallied 11% after hours, following a 3.2% decline in the regular session to close at $146.79.
The company reported a fiscal first-quarter loss of $55 million, or 41 cents a share, compared with a loss of $17.1 million, or 13 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 14 cents a share, compared with a loss of 4 cents a share in the year-ago period.
Revenue rose to $142.6 million from $93.6 million in the year-ago quarter, while billings rose to $144.7 million from $88.3 million.
Analysts surveyed by FactSet had forecast earnings of 6 cents on revenue of $132.4 million and billings of $124.2 million.
“Our customers are accelerating their digital transformation, and this drove our strong first quarter results,” said Jay Chaudhry, Zscaler chairman and chief executive, in a statement.
Zscaler expects adjusted earnings of 7 cents to 8 cents a share on revenue of $146 million to $148 million for the fiscal second quarter, and 37 cents to 38 cents a share on revenue of $608 million to 612 million for the year. Analysts had forecast earnings of 7 cents on revenue of $140.2 million for the fiscal second quarter, and 31 cents a share on revenue of $588.1 million for the year.
As of Wednesday’s close, the stock is up 216% for the year, compared with a 14% rise in the S&P 500 index (S&P:SPX) , a 38% gain in the tech-heavy Nasdaq Composite Index (AMERICAN:COMP) , and a 22% advance in the ETFMG Prime Cyber Security ETF (PSE:HACK) .