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Zscaler stock falls as results, outlook beat Street

Wallace Witkowski

Zscaler Inc. shares dropped in the extended session Thursday even after the cloud-based cybersecurity company topped Wall Street estimates for both its results and outlook. Zscaler shares fell 6.3% after hours, following a 2.6% rise to close the regular session at $72.99 for an 86% year-to-date gain. The company reported a fiscal third-quarter loss of $12.2 million, or 10 cents a share, compared with a loss of $10 million, or 14 cents a share, in the year-ago period. Adjusted earnings were 5 cents a share. Revenue rose to $79.1 million from $49.2 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of a penny a share on revenue of $74.9 million. Zscaler expects adjusted earnings of a penny to 2 cents a share on revenue of $81 million to $83 million, while analysts had forecast a penny a share on revenue of $78.9 million.