Zscaler Shares Fall 9 Percent on Wider Quarterly Net Loss
Zscaler reported a wider quarterly loss of $34.3 million as spending on sales and R&D increased. Shares fell 9% despite revenue and profit beating estimates.
Zscaler, Inc. reported a wider net loss for its second fiscal quarter as the company increased spending on sales, marketing, and research and development to maintain its position in a competitive cybersecurity market. Following the release of the results, shares of the cloud security firm fell approximately 9% in extended trading. The company reported a net loss of $34.3 million for the quarter ended January 31, compared to a loss of $7.7 million in the prior year. Total operating expenses rose to $676.3 million, up from $539.5 million a year earlier.
Despite the increased spending, the company’s revenue grew 26% to $815.8 million, exceeding the average analyst estimate of $798.8 million. Adjusted profit per share reached $1.01, beating the expected 90 cents. The results come amid a cautious spending environment where corporate IT budgets remain tight due to economic uncertainty, though cybersecurity remains a priority for many firms.
