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Zscaler stock drops more than 10% following earnings beat, forecast just above Street view – News Opener

Zscaler Inc. stock fell in the extended session Thursday even as the cybersecurity company beat on earnings and offered an outlook that was just above the Wall Street consensus.

Zscaler 
ZS,
+8.28%

shares dropped as much as 12% after hours, following an 8.3% gain in the regular session to close at $144.50.

The company reported a fiscal first-quarter loss of $68.2 million, or 48 cents a share, compared with a loss of $90.8 million, or 65 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 29 cents a share, compared with 14 cents a share in the year-ago period.

Revenue rose to $355.5 million from $230.5 million in the year-ago quarter, the company said. Calculated billings, or revenue plus deferred revenue acquired over the quarter, rose to 37% to $340.1 million from the year-ago period.

Analysts surveyed by FactSet had forecast earnings of 26 cents a share on revenue of $340.7 million and billings of $333.1 million.

Last quarter, Zscaler exceeded Wall Street expectations across the board, and the stock logged its best one-day performance since the company went public in 2018.

Zscaler said it expects adjusted earnings of 29 cents to 30 cents a share on revenue of $364 million to $366 million for the fiscal second quarter. Analysts estimate 26 cents a share on revenue of $325.1 million and billings of $355.3 million for the quarter.

The company also forecast adjusted earnings of $1.23 to $1.25 a share on revenue of about $1.53 billion for the year and billings of $1.93 billion to $1.94 billion.

Analysts had forecast earnings of $1.18 a share on revenue of $1.5 billion and billings of $1.93 billion for the year.

As of Thursday’s close, the stock is down 55% year to date, compared with a 15% loss by the S&P 500 index 
SPX,
-0.09%
,
a 27% decline on the tech-heavy Nasdaq Composite Index
COMP,
+7.36%
,
and a 23% decline on the ETFMG Prime Cyber Security ETF 
HACK,
+3.37%
.

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