Zscaler, the cloud security platform, is set to announce its financial results tomorrow after the market closes. Investors and analysts are keenly observing what the numbers will reveal.
In the previous quarter, Zscaler outperformed analysts’ revenue expectations by 2.1%, reporting $647.9 million, which represented a significant year-over-year growth of 23.4%. The quarter was strong for Zscaler, with notable beats in annual recurring revenue and EBITDA estimates as well.
Looking ahead, analysts project Zscaler’s revenue will grow 20.6% year over year, reaching approximately $667 million. This marks a slowdown compared to the 32.1% growth from the same quarter last year. Adjusted earnings are anticipated to be around $0.76 per share.
Analysts have largely reaffirmed their estimates in the past month, suggesting a steady outlook for the company. It’s worth noting that Zscaler has missed revenue estimates set by Wall Street on two occasions in the past two years.
In the broader cybersecurity space, competitors have already disclosed their quarterly results, providing context for Zscaler’s performance. For instance, Palo Alto Networks reported a year-over-year revenue growth of 15.3%, slightly above expectations, while Qualys saw an increase of 9.7%, surpassing forecasts.
Positive sentiment has been building among investors within the cybersecurity sector, with stock prices rising an average of 8.5% over the last month. Notably, Zscaler has outperformed with a 14.5% increase in share price during the same period. Analysts currently have an average price target of $245.50 for Zscaler, compared to its current trading price of $256.20.
Overall, these indicators suggest that Zscaler remains a formidable player in the cybersecurity arena, with analysts monitoring the earnings closely for further insights.