Categories Earnings, Technology

Zscaler’s Q2 results beat market estimates

Zscaler Inc. (NASDAQ: ZS) beat revenue and earnings estimates for the second quarter of 2020 but the outlook fell below estimates, causing the stock to crash by more than 10% in aftermarket hours on Thursday.

The cloud security company reported a 36% year-over-year increase in total revenue to $101.3 million, beating forecasts of $98.9 million.  

GAAP net loss was $29.2 million, or $0.23 per share, compared to $3.6 million, or $0.03 per share, in the prior-year period. Adjusted net income totaled $12 million, or $0.09 per share, surpassing projections of $0.03 per share.

Zscaler Q2 2020 revenue and earnings trend

Calculated billings grew 18% to $135.4 million and deferred revenue increased 36% to $280 million compared to last year.

For the third quarter of 2020, the company expects total revenue of $105-107 million and adjusted EPS of approx. $0.01-0.03. This fell short of Wall Street’s estimates of $0.04 per share for the third quarter.

For the full year of 2020, revenue is expected to be $414-417 million and adjusted EPS is expected to be $0.14-0.16. Calculated billings is estimated to range between $512-517 million.

Zscaler has been strengthening its product portfolio to keep pace with industry leaders like Cisco (CSCO) while giving competition to peers. As a result, the company continues to expand its user-base. More and more businesses, including top-tier companies, are adopting Zscaler’s cloud security solutions.

According to Allied Market Research, the global cloud security market is expected to grow to $8.9 billion by 2020, reflecting a CAGR of 23.5% during the period from 2015-2020.  

Last month, Zscaler reached an agreement with Broadcom (NASDAQ: AVGO), resulting in the dismissal of all patent lawsuits filed against Zscaler by Symantec, which was acquired by Broadcom. As part of the settlement, Zscaler agreed to pay $15 million to Broadcom.

Also Read:  Qutoutiao Inc. (QTT) Q2 2020 Earnings Call Transcript

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Costco (COST) Q4 earnings, revenue top expectations

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the fourth quarter of 2020, reflecting a marked increase in merchandise sales. The results also topped analysts’

Can Cintas (CTAS) take forward virus-driven shift in sales trend?

The disruption caused by coronavirus has affected almost all sectors except business service providers like Cintas Corporation (NASDAQ: CTAS), which is busy helping clients maintain hygiene and safety during the

Rite Aid’s (RAD) loss narrows in Q2 2021

Rite Aid Corporation (NYSE: RAD) reported a narrower loss in the second quarter of 2021. Net loss shrank to $0.25 per share in the recently ended quarter from $1.49 per

Top