SECURITY
SECURITY
SECURITY
Zscaler shares drop as cybersecurity firm reports mixed financials
Updated:
Shares in cybersecurity firm Zscaler Inc. dropped in after-hours trading Thursday as the company reported mixed financials, including a larger-than-expected loss.
In its fiscal third quarter, Zscaler reported revenue of $79.1 million, up 61% over the same quarter of last year and higher that analyst predictions of revenue of $74.9 million. The increase came off the back of higher billings which rose 55%, to $84.7 million.
While revenue was higher, so was Zscaler’s loss. The company reported a net loss using of $12.2 million, compared with $8.8 million a year ago. The per-share loss of 10 cents was a slight improvement from 14 cents a year ago. Adjusted for costs such as stock compensation, the company made a small profit of $6.1 million, compared with a loss of $2.1 million last year.
“We are pleased to deliver another quarter of strong growth and non-GAAP profitability while making strategic investments in our business to capture our significant market opportunity,” Jay Chaudhry, Zscaler’s chairman and chief executive said in a statement.
Those strategic investments included the acquisition of Appsulate Ltd., a Boston-based developer of next-generation browser-based access technology.
Details about the company and the acquisition were not separately disclosed, but according to Appsulate’s LinkedIn page, it appears that the acquisition was only made official today. It is known that the company had international offices and included Romanian startup founder Mihai Rotaru as an investor.
Looking forward, Zscaler said it expects total revenue in the next quarter to come in at $81 million to $83 million with an adjusted profit 1 to 2 cents per share. For the fiscal year 2019, the company said it expected a 16- to 18-cent profit on revenue of $298 million to $300 million.
Zscaler’s share price dropped 3.4% in after-hours trading. Update: On Friday, a down day for the overall markets, shares fell almost 6%.
Even with the decline, Zscaler’s share price continues to deliver for investors after the company went public in March 2018 at a price of $16 per share. The share price is also nearly double what it was when Zscaler reported its first post-IPO financials in June 2018.
Image: Zscaler
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