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Zscaler stock scales higher after hours as earnings, outlook surpass Street view

Zscaler Inc. shares rallied in the extended session Thursday, adding to the day’s gains after the cybersecurity company’s quarterly results and outlook exceeded Wall Street expectations.

Zscaler 
ZS,
+4.43%

shares surged 7% after hours, following a 4.4% rise in the regular session to close at $154.25.

The company reported a fiscal fourth-quarter loss of $97.7 million, or 69 cents a share, compared with a loss of $81 million, or 59 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 25 cents a share, compared with 14 cents a share in the year-ago period.

Revenue rose to $318.1 million from $197.1 million in the year-ago quarter, the company said. Calculated billings, or revenue plus deferred revenue acquired over the quarter, rose to $520.4 million from $332.2 million in the year-ago period.

Analysts surveyed by FactSet had forecast earnings of 21 cents a share on revenue of $305.4 million and billings of $467.2 million.

Zscaler said it expects adjusted earnings of about 26 cents a share on revenue of $339 million to $341 million for the fiscal first quarter. Analysts estimate 21 cents a share on revenue of $325.1 million and billings of $329.1 million for the quarter.

The company also forecast adjusted earnings of $1.16 to $1.18 a share on revenue of $1.49 billion to $1.5 billion for the year and billings of $1.92 billion to $1.94 billion.

Analysts had forecast earnings of $1.04 a share on revenue of $1.47 billion and billings of $1.86 billion for the year.

As of Thursday’s close, the stock is down 52% year to date, compared with a 16% loss by the S&P 500 index 
SPX,
+0.66%
,
a 24% declines on both the tech-heavy Nasdaq Composite Index
COMP,
+0.60%
,
and the ETFMG Prime Cyber Security ETF 
HACK,
+1.17%
.

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