Zscaler’s stock falls after earnings as company keeps billings outlook intact

Zscaler’s stock falls after earnings as company keeps billings outlook intact

Though Zscaler’s billings for the latest quarter beat expectations, the cybersecurity company didn’t up its full-year forecast on the metric

Zscaler Inc. topped expectations with its results for the latest quarter and its outlook for the ongoing one, but shares of the cybersecurity company were moving lower in Monday’s extended session as Zscaler declined to up its full-year billings forecast.

Calculated billings for the fiscal first quarter came in at $457 million, up from $340 million a year prior, whereas analysts had been looking for $443 million. Despite showing upside in the latest quarter, Zscaler (ZS) kept its full-year forecast at $2.52 billion to $2.56 billion in calculated billings, while analysts were looking for $2.54 billion.

Zscaler defines calculated billings as revenue plus the change in deferred revenue for a given period.

The company reported a fiscal first-quarter net loss of $33 million, or 23 cents a share, compared with $68 million, or 48 cents a share, in the year-earlier period. On an adjusted basis, Zscaler earned 67 cents a share, while the FactSet consensus was for 49 cents a share.

Zscaler posted quarterly revenue of $497 million, up from $356 million a year before, while analysts had been modeling $473 million.

“In order to meet this growing need, we are scaling our go-to-market and [research and development] organizations, strengthening our foundation for the long-term growth of our business,” Chief Executive Jay Chaudhry said in a release.

For the ongoing quarter, the company expects revenue of $505 million to $507 million, along with adjusted earnings per share of 57 cents to 58 cents. The FactSet consensus was for $497 million and 52 cents, respectively.

For the full fiscal year, Zscaler anticipates $2.09 billion to $2.10 billion in revenue. Analysts were looking for $2.06 billion in full-year revenue. The company also models $2.45 to $2.48 in adjusted EPS for the full year, compared with the $2.24 that analysts tracked by FactSet were expecting.

Shares of Zscaler were off nearly 6% in Monday’s after-hours trading. The stock is up 72% so far this year.

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