Zscaler (NASDAQ:) reported better-than-expected fourth-quarter results, but its shares fell 13% in after-hours trading on disappointing earnings guidance for the next fiscal year.
The cloud security company reported adjusted earnings per share of $0.88, beating analysts’ estimates of $0.70. Revenue for the quarter was $592.9 million, up 30% year over year and above the consensus estimate of $567.46 million.
Despite the strong quarterly performance, Zscaler’s fiscal 2025 outlook fell short of expectations. The company expects full-year adjusted earnings of $2.81 to $2.87 per share, below the $3.01 analysts had expected. Revenue of $2.60 billion to $2.62 billion was in line with estimates.
“We finished fiscal 2024 on a high note with fourth quarter results exceeding the top end of our guidance across all metrics,” said Jay Chowdhury, Chairman and CEO of Zscaler.
“Customer adoption of our Zero Trust Exchange platform is stronger than ever, and I’m thrilled to share that we’ve reached a major milestone with our cloud platform surpassing half a trillion transactions per day.”
For the first quarter of fiscal 2025, Zscaler expects revenue between $604 million and $606 million, slightly above consensus. However, its adjusted EPS forecast of $0.62 to $0.63 is below the $0.73 analysts were expecting.
The company’s deferred revenue, a proxy for future growth, rose 32% year-over-year to $1.895 billion. Cash flow from operations was $203.6 million, representing 34% of revenue.
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