Zscaler’s (ZS) stock is down 6% despite the cybersecurity firm reporting better-than-expected financial results and raising its forward guidance.
The company reported earnings per share of $0.67 U.S. for what was its fiscal first quarter, which was well above analyst forecasts of $0.49 U.S.
Revenue came in at $496.7 million U.S., up 40% from a year ago and ahead of the $473 million U.S. expected on Wall Street.
Zscaler said that its billings rose 34% to $456.6 million U.S. during the latest quarter, which beat consensus estimates of $441 million U.S.
However, the stock began to drop after the company said that it intends to boost spending going forward to help it gain market share.
The company also announced two new additions to its senior management team, which wasn’t expected.
Mike Rich, previously president of the Americas for ServiceNow (NOW) was named chief revenue officer, and Joyce Kim, who had been chief marketing officer at Twilio (TWLO),
is taking on the same role at Zscaler.
Looking ahead, the company forecast revenue of $505 million U.S. to $507 million U.S. and EPS of $0.57 U.S. to $0.58 U.S. for the current quarter.
That guidance was better than the consensus view among analysts for sales of $496 million U.S. and a profit of $0.52 U.S. a share.
Before today (Nov. 28), Zscaler’s stock had risen 74% this year to trade at $191.91 U.S. per share.
