Positive

From Nasdaq: 2024-05-31 10:32:00

Zscaler (ZS) reported impressive third-quarter fiscal 2024 results, with non-GAAP earnings of 88 cents per share, beating estimates. Revenues reached $553.2 million, up 32% year over year. Calculated billings increased 30% to $628 million. The company added large customers and saw a net 12-month trailing dollar-based retention rate of 116%.

Zscaler’s operating details showed a non-GAAP gross profit increase to $450 million and a 34.2% year-over-year growth. Total non-GAAP operating expenses rose to $328.5 million. Cash flow was strong, with operating and free cash flows at $173.4 million and $123 million, respectively.

For fiscal 2024, ZScaler revised guidance, expecting revenues of $2.14-$2.142 billion and non-GAAP EPS of $2.99-$3.01. The company projects a range of $565-$567 million for the fourth quarter revenues. ZS is a Zacks Rank #3 (Hold) stock, while AppFolio (APPF), Arista Networks (ANET), and Alphabet (GOOGL) are Zacks Rank #1 (Strong Buy) picks.

The Zacks Consensus Estimate for AppFolio’s 2024 EPS is $4, ANET’s is $7.92, and GOOGL’s is $7.61. ZS stock has declined 29.3% year-to-date, while APPF, ANET, and GOOGL have gained 32.6%, 29%, and 23.2% respectively. Experts’ 7 Best Stocks suggestions are available for immediate attention.



Read more at Nasdaq: Zscaler (ZS) Q3 Earnings and Revenues Surpass Estimates