Zscaler (NASDAQ:ZS) reported Q2 earnings and revenue that topped analysts' expectations and hiked its guidance for the full fiscal 2024.
Shares fell over 5% in after-hours trading.
For the FQ2 2024, the company posted EPS of $0.76, beating the consensus estimate of $0.58. Revenue for the quarter also surpassed projections, coming in at $525 million compared to the consensus estimate of $507.58 million.
ZS reported a 27% year-over-year increase in calculated billings, reaching $627.6 million.
Total operating expenses increased to $453.3 million during the period, up from $365.2 million in the same quarter last year.
For the upcoming third quarter of 2024, Zscaler anticipates an EPS between $0.64 and $0.65, outpacing the consensus of $0.58.
Revenue is anticipated to be in the range of $534 million to $536 million, slightly above the $531 million projected by analysts.
For the full fiscal year 2024, the cloud security firm raised its projections, and now expects EPS between $2.73 and $2.77, up from the $2.45 to $2.48 it previously expected, and above the consensus estimate of $2.49.
FY2024 revenue is anticipated to land between $2.118 billion and $2.112 billion, up from the earlier forecast range of $2.09 billion to $2.10 billion, while analysts estimated $2.1 billion.
"We delivered strong Q2 results, with billings, revenue and operating profit all coming in above our guidance as customer interest in the Zscaler Zero Trust Exchange platform remains high," said Jay Chaudhry, Chairman and CEO of Zscaler.
“An increasing number of customers are realizing the shortcomings of traditional firewall-based security and are engaging with us to transform their legacy security to Zero Trust architecture".