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There are strong structural drivers for the company’s cloud-based cybersecurity services  
Thursday 31 Aug 2023 Author: Tom Sieber

Cloud security firm Zscaler (ZS:NASDAQ) is set to report its fourth quarter and full-year earnings for the period ended 31 July on 5 September. The release comes after a decent run for the share price in recent months.



The San Jose-based cybersecurity business provides tools to protect data centres against hacking attacks. The company sells products which aim to help safely connect the right user to internally and externally managed applications and internet destinations.



At $140, the shares currently trade 775% higher than the $16 price at which it joined the stock market in March 2018.

In common with many cloud-software vendors, Zscaler has found businesses are taking more time to scrutinise deals or subscriptions and this is having a knock-on effect on its earnings. Earlier this year the company announced plans to take costs out of the business through a 3% reduction in its global workforce.

Strong third quarter numbers helped lift sentiment in the interim. Earnings per share came in at $0.48 versus the $0.42 forecast, while revenue was a smidge ahead of the expected $417.4 million at $418.8 million.

These suggested any slowdown in this market is likely to represent a blip rather than anything long term, with clear structural drivers from growing cyber threats in an increasingly digitised world.


US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

September 1:  Hashicorp, Smartsheet

September 5: Zscaler, Caseys, Sigma Lithium Resources

September 6: Guidewire, Korn Ferry, Verint, GameStop

September 7: Toro, Science Applications, John Wiley & Sons, Phreesia, FuelCell Energy

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