Investing.com — Zscaler on Monday issued softer guidance for the current quarter that overshadowed better-than-expected fiscal first-quarter results and a raise to annual guidance.
Zscaler Inc (NASDAQ:) fell more than 7% in premarket trading on Tuesday.
For the three months ended October 31, the company reported first-quarter earnings per share of $0.77 and revenue of $628 million, beating expectations of $0.63 and $605.4 million, respectively.
Billings calculated increased 13% year-over-year to $516.7 million, significantly slower than the 27% increase in the previous quarter.
For the second quarter, adjusted earnings per share were expected of $0.68 to $0.69 on revenue of $633 million to $635 million, compared with estimates of $0.68 on revenue of $633.1 million.
For the full year, adjusted earnings per share were forecast at $2.94 to $2.99 on revenue of $2.62 billion to $2.64 billion, compared with previous estimates for earnings per share of $2.81 to $2.87 with sales between $2.60 billion and $2.62 billion.
“If we take a step back and simply consider the results outside the range of the ‘prudent’ guidance, we see a significant moderation in business momentum as billings rose 13%, which was halved versus 27% in the previous quarter,” Guggenheim analysts said in a report. remark.
In addition to the quarterly results, Zscaler also announced the departure of its chief financial officer, Remo Canessa.
Analysts at BMO Capital Markets believe the company’s report will be “impacted and possibly overshadowed” by this announcement in the near term.
Yasin Ebrahim contributed to this report.
