Zscaler Stock Falls on Billings Decline, Weak Outlook

Key Takeaways

• Shares of Zscaler fell Tuesday, a day after it reported that billings declined sequentially and issued current-quarter steerage on the low finish of estimates.
• The cybersecurity agency additionally introduced that CFO Remo Canessa can be stepping down.
• Zscaler's first-quarter fiscal 2025 revenue and income beat forecasts.

Zscaler (ZS) shares fell 5% Tuesday, a day after the cloud-based cybersecurity platform reported a slowdown in billings and issued underwhelming steerage. As well as, it introduced the corporate’s finance chief can be stepping down.

Zscaler posted first-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.77, with income up 26% year-over-year to $628.0 million. Each exceeded forecasts of analysts polled by Seen Alpha.

Nonetheless, billings got here in at $516.7 million, a 43% decline from the earlier quarter and the bottom whole because the first quarter of fiscal 2024.

Zscaler sees current-quarter adjusted EPS of $0.68 to $0.69 and income of $633 million to $635 million. Analysts surveyed by Seen Alpha have been on the lookout for $0.69 and $634.8 million, respectively.

CFO To Retire As soon as Substitute Named

The corporate additionally introduced that Chief Monetary Officer (CFO) Remo Canessa has determined to retire as soon as his alternative is called. Zscaler famous that Canessa’s resolution “is not the result, in whole or in part, of any disagreement with the Company on any matters relating to the Company’s operations, policies or practices.” It added {that a} seek for a brand new CFO is below approach.

Shares of Zscaler are down about 10% year-to-date.

Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.