Zscaler Surpasses Earnings Expectations with Strong Q3 Performance

Published 1 days agoZS

Zscaler Surpasses Earnings Expectations with Strong Q3 Performance

Zscaler has delivered an impressive performance in its third fiscal quarter of 2024, reporting an adjusted earnings per share (EPS) of $0.88. This figure outpaces analyst expectations of $0.66, supported by revenue that soared to $553.2 million—marking a 32% increase year-over-year. The revenue also surpassed the consensus estimate of $535.9 million, according to reports by Benzinga.

The company saw a significant rise in customer numbers, adding 26 new clients with annual recurring revenues (ARR) above $1 million, bringing the total to 523. Similarly, customers with ARR over $100,000 increased to 2,922, Nasdaq noted. Zscaler also demonstrated strong cash flow metrics, generating $123.1 million in free cash flow this quarter, an increase from $73.9 million a year earlier, and has improved its free cash flow margin to 22%.

For fiscal year 2024, Zscaler has set optimistic revenue guidance between $2.14 billion and $2.142 billion, with adjusted EPS projected to be between $2.99 and $3.01, as reported by Investing.com. These results have encouraged analysts to maintain a positive outlook on the company's future potential.

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