Why Zscaler Stock Dropped Today
Shares of Zscaler (NASDAQ: ZS) fell as much as 6% early Wednesday, then settled to trade down around 3% as of 2:40 p.m. ET despite announcing stronger-than-expected fiscal fourth-quarter results (for the period ended July 31, 2023) and encouraging forward guidance.
On the former, quarterly revenue climbed 43% year over year to $719.3 million, translating to adjusted net income of $100.9 million, or $0.64 per share. Analysts, on average, were looking for adjusted earnings of only $0.50 per share on revenue of $431.3 million.
Zscaler saw a healthy 38% year-over-year increase in calculated billings -- a key metric to help gauge future revenue growth. Deferred revenue also climbed 41% to $1.4397 billion. Chairman and CEO Jay Chaudhry noted the company has more than doubled its annual recurring revenue over the past two years, exceeding $2 billion as of the end of this fiscal year.
Source Fool.com
Zscaler Inc Stock
The stock is an absolute favorite of our community with 102 Buy predictions and no Sell predictions.
With a target price of 235 € there is a hugely positive potential of 79.23% for Zscaler Inc compared to the current price of 131.12 €.
