Zscaler Earnings: What To Look For From ZS

Cloud security platform Zscaler (NASDAQ:ZS) will be reporting earnings this Tuesday afternoon. Here’s what you need to know.

Zscaler beat analysts’ revenue expectations last quarter, reporting revenues of $815.8 million, up 25.9% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

Is Zscaler a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Zscaler’s revenue to grow 23.2% year on year, in line with the 22.6% increase it recorded in the same quarter last year.Zscaler Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zscaler has a history of exceeding Wall Street’s expectations.

Looking at Zscaler’s peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Varonis Systems delivered year-on-year revenue growth of 26.9%, beating analysts’ expectations by 4.6%, and Tenable reported revenues up 9.6%, topping estimates by 1.2%. Varonis Systems traded up 7.3% following the results while Tenable was down 2.7%.

Read our full analysis of Varonis Systems’s results here and Tenable’s results here.

There has been positive sentiment among investors in the cybersecurity segment, with share prices up 10% on average over the last month. Zscaler is up 35.6% during the same time and is heading into earnings with an average analyst price target of $223.39 (compared to the current share price of $181.92).

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