Zscaler reported adjusted earnings per share of $1.19, surpassing the expected $1.09, and revenue of $898 million, exceeding the $877 million forecast. This represents a 25% increase in revenue from approximately $719 million a year ago.
Despite a net loss of $3.4 million, an improvement from a loss of $17.6 million the previous year, the company's annual recurring revenue also rose 25% to $3.77 billion, beating the $3.75 billion estimate. CEO Jay Chaudhry emphasized the significance of their Zero Trust cloud security architecture, particularly its new iteration for AI agents, which he believes will drive future growth.
Zscaler's guidance for the upcoming quarter anticipates revenue between $935 million and $939 million, along with adjusted EPS of $1.15 to $1.16, both exceeding analyst expectations. For the full fiscal year, the company projects revenue between $3.91 billion and $3.94 billion, slightly above the $3.90 billion estimate, and adjusted EPS between $4.86 and $4.90, compared to a $4.60 estimate.
Despite a challenging year where Zscaler's stock fell 20%, Chaudhry remains optimistic about the company's unique position in the cybersecurity market, particularly as businesses increasingly seek advanced security solutions in response to evolving cyber threats