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Dec. 2, 2020, 4:31 p.m. EST

Zscaler stock rallies more than 10% on strong quarter and outlook

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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 /zigman2/quotes/203585803/composite ZS -0.53% 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 /zigman2/quotes/210599714/realtime SPX +0.03% , a 38% gain in the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.55% , and a 22% advance in the ETFMG Prime Cyber Security ETF /zigman2/quotes/207892345/composite HACK -0.63% .

/zigman2/quotes/203585803/composite
US : U.S.: Nasdaq
$ 213.63
-1.13 -0.53%
Volume: 1.19M
Jan. 21, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$28.82 billion
Rev. per Employee
$213,500
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/zigman2/quotes/210599714/realtime
US : S&P US
3,853.07
+1.22 +0.03%
Volume: 2.54B
Jan. 21, 2021 4:04p
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/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
13,530.91
+73.67 +0.55%
Volume: 6.74M
Jan. 21, 2021 4:04p
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/zigman2/quotes/207892345/composite
US : U.S.: NYSE Arca
$ 61.10
-0.39 -0.63%
Volume: 263,122
Jan. 21, 2021 4:00p
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