Zscaler reported better-than-expected financial results for its fiscal fourth quarter, though its shares declined following the announcement. The cloud security company posted revenue growth of 25% compared to the prior year, reaching approximately $719 million in the prior-year period. The firm recorded a net loss of $3.4 million, or 2 cents per share, an improvement from a net loss of $17.6 million, or 11 cents per share, in the comparable quarter a year earlier.
Annual recurring revenue climbed 25% year-over-year to $3.77 billion, surpassing analyst expectations of $3.75 billion according to StreetAccount. Chief Executive Jay Chaudhry attributed the quarterly outperformance to growing adoption of the company’s Zero Trust cloud security architecture. He expressed confidence in recently launched Zero Trust solutions designed for artificial intelligence agents, characterizing the opportunity as significant with substantial competitive barriers to entry.
Bookings related to AI security totaled $100 million over the past year and expanded more than 50% on a sequential basis during the quarter. The cybersecurity sector overall has experienced notable gains this year amid rising concerns over increasingly sophisticated cyber threats and agent-led attacks prompting business investment in new security tools. However, Zscaler shares have declined 20% this year, underperforming sector peers, partially due to stock weakness following management’s cautious guidance approach in the previous quarter after two sales leader departures.
Looking ahead, Zscaler provided fiscal first-quarter guidance of $935 million to $939 million in revenue and adjusted earnings per share of $1.15 to $1.16, exceeding consensus estimates of $927 million and $1.08 per share respectively. For the full fiscal year, the company projected revenue between $3.91 billion and $3.94 billion, above the $3.90 billion estimate, with adjusted EPS expected to range from $4.86 to $4.90 compared to the $4.60 analyst consensus.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI