From Financial Modeling Prep: 2024-12-03 10:29:00

Zscaler (NASDAQ:ZS) shares dropped 4% after issuing weaker guidance for the current quarter, despite beating Q1 earnings estimates with $0.77 EPS and $628 million in revenue, exceeding analyst expectations of $0.63 EPS and $605.4 million in revenue. Billings growth slowed to 13% year-over-year from 27% in the previous quarter.

Q2 guidance for Zscaler projects $0.68-$0.69 EPS on $633-$635 million in revenue, in line with Wall Street expectations. The company also raised its full-year outlook to $2.94-$2.99 EPS on $2.62-$2.64 billion in revenue, up from previous guidance of $2.81-$2.87 EPS and $2.60-$2.62 billion in revenue.

Analysts expressed concern over the significant slowdown in billings growth, noting a sharp decline compared to the previous quarter. Guggenheim analysts highlighted the moderation in business momentum as a potential red flag for investors. Additionally, Zscaler announced the retirement of its CFO, Remo Canessa, adding to investor unease.



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