Zscaler (ZS) Stock Sinks 16% Despite Strong Q2 Beat
Zscaler (NASDAQ: ZS) shares were trading more than 16% lower after-hours despite the company’s reported strong Q2 results, with EPS coming in at $0.13, beating the consensus estimate of $0.11. Revenue grew 63% year-over-year to $255.6 million, compared to the consensus estimate of $241.56 million. Calculated billings rose 59% year-over-year to $367.7 million.
According to Jay Chaudhry, Chairman and CEO of Zscaler, the company delivered strong Q2 results, with its year-over-year revenue growth rate reaching its highest level in three years, driven by continued demand for its Zero Trust security platform.
The company expects Q3/22 EPS in the range of $0.10-$0.11, compared to the consensus of $0.11, and revenue in the range of $270-272 million, compared to the consensus of $256.67 million.
For the full 2022-year, the company expects EPS in the range of $0.54-$0.56, compared to the consensus of $0.52, and revenue in the range of $1.045-1.05 billion, compared to the consensus of $1.01 billion.