Shares of cybersecurity solutions provider Zscaler Inc. (ZS) rose slightly by 0.85 percent to $183.45 on Monday, but those risen 26.45% to $185.61 on December 3 for reporting a solid report for quarter ended on 31 October 2020 for the first quarter of fiscal year 2021.
Analysts were expecting a potential rise in revenues of Zscaler services since last quarter and the company reached those optimistic expectations. Zscaler’s revenue rose 52 percent year-on-year to $142.6 million in the past quarter. Compared to $17.1 million a year ago, the GAAP net loss was $55 million. Compared with $4.9 million a year ago, non-GAAP profit was $20 million. Cash flow from operations rose to $53.5 million and free cash flow grew to $42.2 million.
The firm expects revenue of $608 – $612 million for the full year. A rapid rise in demand for cloud technology and remote work platforms have been contributed by the COVID-19 crisis. Therefore, the need for cyber security instruments for new market segments has increased. Even after the end of the coronavirus pandemic, this pattern is likely to continue. Thus, Zscaler’s positive dynamics could continue over the coming years.
In the reported quarter, Zscaler released some significant news. In particular, as part of the promising Zero Confidence principle, a strategic alliance with VMware has been revealed. The company also announced the Zenith Live 2020 industry event (held in December), published a study on emerging methods of cyber attacks, and announced collaboration with the new School of Engineering at York University to jointly train specialists.
Zscaler Inc. (ZS) was up 3 percent over the past week, while it has added nearly 30 percent over the past month. The company added more than 78 percent over the past six months while gain remained 294 percent since start of the year. Company’s market capitalization currently stands at over $24 billion.