Cloud security platform Zscaler (NASDAQ:ZS) will be reporting results tomorrow after market hours. Here’s what to expect.
Zscaler beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $628 million, up 26.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Zscaler a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Zscaler’s revenue to grow 20.8% year on year to $634.4 million, slowing from the 35.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.69 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zscaler has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Zscaler’s peers in the cybersecurity segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Palo Alto Networks delivered year-on-year revenue growth of 14.3%, beating analysts’ expectations by 0.8%, and Okta reported revenues up 12.7%, topping estimates by 2.1%. Palo Alto Networks’s stock price was unchanged following the results.
Read our full analysis of Palo Alto Networks’s results here and Okta’s results here.
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