.September 4, 2024 11:34 AM

Zscaler (NASDAQ:ZS) reported strong fourth-quarter results, with adjusted earnings per share of $0.88, beating analyst expectations of $0.70. Revenue for the quarter rose 30% to $592.9 million, surpassing estimates of $567.46 million. However, the stock dropped over 16% due to disappointing profit guidance for fiscal 2025.

The company’s outlook for fiscal 2025 fell short of expectations, with adjusted earnings per share forecasted at $2.81 to $2.87, below the $3.01 predicted by analysts. Revenue guidance for the year was in line with estimates, ranging from $2.60 billion to $2.62 billion.

For the first quarter of 2025, Zscaler projected revenue slightly above expectations at $604 million to $606 million, but its adjusted EPS forecast of $0.62 to $0.63 missed the $0.73 expected by Wall Street analysts.

Despite the stock drop, Zscaler’s deferred revenue increased 32% year-over-year to $1.895 billion, and cash flow from operations totaled $203.6 million, representing 34% of revenue.