2024-12-03 04:08:49 :
Dec 2 (Reuters) – Zscaler raised its annual revenue forecast on Monday after beating quarterly revenue forecasts on strong demand for cybersecurity services, but its shares fell in after-hours trading as its report failed to impress investors. fell more than 6%.
The company also announced the retirement of Chief Financial Officer Remo Canessa.
As digital threats and high-profile hacks increase, businesses around the world are increasing spending on cybersecurity solutions, which in turn benefits cybersecurity companies like Zscaler.
According to Check Point data, the growth rate of global cyber attacks in the second quarter of 2024 was the highest in the past two years.
However, Zscaler’s forecast for second-quarter revenue was broadly in line with Wall Street expectations but failed to keep pace with investor expectations, said Michael Ashley Schulman, chief investment officer at Running Point Capital.
Zscaler raised its fiscal 2025 revenue forecast to a range of $2.62 billion to $2.64 billion from the previous range of $2.60 billion to $2.62 billion.
It raised its adjusted earnings per share forecast to $2.94 to $2.99, compared with its previous forecast of $2.81 to $2.87.
The company forecast second-quarter revenue between $633 million and $635 million, compared with expectations of $633.8 million, according to data compiled by LSEG.
Revenue for the quarter ended Oct. 31 was $627.96 million, beating estimates of $606.2 million.
The company’s net loss per share in the first quarter was 8 cents, compared with a loss of 23 cents in the same period last year.
Zscaler faces stiff competition in the cybersecurity industry from larger rivals such as Palo Alto Networks, which last month reported strong quarterly results. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shreya Biswas)
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