Why Zscaler Stock Gained 23% in January
What happened
Shares of Zscaler (NASDAQ: ZS) jumped 23.4% last month, according to data provided by S&P Global Market Intelligence, following a big move higher in the wake of the company's fiscal first-quarter earnings release in December.
So what
Zscaler's Q1 revenue surged 58.7% year over year to $63.3 million. That bested Wall Street's expectations by nearly $5 million.
Moreover, Zscaler unexpectedly delivered an adjusted profit and generated positive free cash flow -- both of which it expects to do on a consistent basis by fiscal 2020.
Better still, Zscaler boosted its full-year revenue forecast to a range of $268 million to $272 million. That, too, was well ahead of analysts' estimates, which had been for $259 million.
Zscaler's revenue is growing at a torrid clip. Image source: Getty Images.
Now what
Zscaler's shares are essentially flat so far in February. Investors are standing pat until the cybersecurity leader's next earnings report, which is scheduled for Feb. 28. Zscaler will also hold an investor conference call that same day at 4:30 p.m. ET. A transcript of the call will be made available here.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of Zscaler, Inc. The Motley Fool has a disclosure policy.
